How to Balance a Checkbook

Do you agonize over the thought of having to balance your checkbook? Does it drive you crazy when the numbers on your bank statement never seem to match the numbers in your checkbook? Most of the time your checkbook balance and your bank statement won’t match up. Don’t worry. This is typical. This happens because certain checks might not have cleared by the time the statement was printed. Also, you may have made deposits to your account after the statement was printed.

Knowing this information, how do I balance my checkbook against my bank statement?

1. If your bank returns your checks to you, put them in order according to check number.
2. Find the first check number on your statement and in your checkbook.
3. If the check number is listed in both places, it means it has cleared and you can place an X in the cleared column in your checkbook. (See sample check register). Do this for all the checks.
4. If you see checks in your checkbook that are not on your statement, don’t put an X in the cleared column. They haven’t cleared yet and will be listed on a future statement.
5. Do the same thing for deposits.
6. Now examine your statement to see if there are any fees for specific transactions like ATM withdrawals, bank fees, deposit fees, check fees, etc.
7. Enter these fees in the fee column in your checkbook and be sure to subtract these amounts from your balance to get your ending balance.

OK, the ending balance on my statement and in my checkbook don’t match! What do I do?

All you have to do is add up all those transactions that have not cleared yet.

• First add the total for checks and subtract this amount from your ending balance.
• Then add the total deposits that haven’t cleared yet and add to your ending balance.

Now the ending balance in your checkbook should match the ending balance on your bank statement!

Review the attached Sample Bank Check Register and Checking Account Statement for a better understanding. In your checkbook look at what the ending balance is after the last cleared transaction. In the example attached, it is Check # 535 with an ending balance of $315.85.

From that ending balance, add and subtract the transactions that haven’t cleared yet.

$315.85
- 50.00	Check # 536
265.85
- 75.00	Check # 537
190.85
+500.00	Deposit
690.85
- 650.00	Check # 538
$40.85	This is your ending Balance. It matches the balance on the Sample Check Register. YOU’RE DONE!

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