Share:

With the prevalence of online banking and electronic payments, using a paper checkbook may seem like a financial method of the past. However, learning to balance a checkbook can help you stay on top of your finances and avoid costly issues. Here are some tips to ensure your checking account is error-free. 

How to Balance a Checking Account Manually

1. Review & Record Transactions

Keep an electronic or paper ledger with all of your transactions. When you write a check or make a payment with your debit card, record it right away. Alternatively, take a moment at the end of each day to document what you spent or withdrew.

Include a brief description of the payment, such as the store name and the dollar amount. Be sure to subtract or add the amount from the total balance.

Recording these transactions can give you a clear picture of your spending habits and an updated record of how much money you have. Although digital banking is convenient, keeping paper records such as receipts and deposit slips will ensure you always have access to your finances.

2. Ensure Balances Match

checking accountAt the end of each month, compare the checkbook ledger with your bank statement. All amounts should match up. If they don’t, this is the time to catch any mistakes.

Place a check mark next to each item as you go. If a total is off, investigate to see if you can determine what went wrong. For example, you may have forgotten to write down a transaction, incorrectly recorded an item, or missed an automatic payment.

Sometimes, the business or cashier of the purchase may have made a mistake. Address any discrepancies right away by revising your ledger or calling the bank to contest a transaction. 

3. Note Outstanding Checks

When you write a check or make a payment with a debit card, the money isn’t taken from the account immediately. With electronic transactions, you can often see these in the “pending” section of the online overview.

Take note of the pending payments in your manual ledger and add up the balances. Refer to last month’s documents to ensure all transactions from the previous period are finalized.

4. Balance

Compare the balances between your manual ledger and bank statement. Be sure to factor in interest earned, if applicable, as well as service charges. If there’s a discrepancy, double-check your math. Call your bank for assistance if the balances still don’t add up.

 

If you’re interested in opening a new checking account, turn to First State Bank in Russellville, AR. This locally owned bank has served Pope County residents and businesses for over 80 years, providing personal, professional service and a variety of products, from loans to checking and savings accounts. Call (479) 498-2400 to speak with a friendly team member, or visit the website to learn more about this neighborhood financial institution.

tracking