by M.R.

Created on: February 09, 2009   Last Updated: August 18, 2009

Are you looking for a way to take the stress out of managing your money? Balance your checkbook online and verify that your funds are processed correctly while preventing costly errors. As so many people are cutting back on costs and, worse yet, losing their jobs and savings, keeping careful track of finances is particularly important. With the advent of online banking, keeping track of your transactions and making sure that your account is balanced has never been easier.

If you do not take the time to make these calculations, you will never know if the bank has made errors in processing your deposits or debits; even if you do identify an error, the time period for rectifying it may be passed if your checkbook is not balanced regularly. You also run the risk of bouncing a check if you do not know precisely how much money is in your checking accountthis can incur costly overdraft fees, and can be a potentially embarrassing situation as well.

Balancing your checking account online is simple:

1. Sort your checking account by type of transaction so all of your checks are listed together. Your bank may no longer send you cancelled checks or even a written statement. You may be able to see a copy of your check online.

2. Match each listed check to where you have recorded it in your register. Ensure that the amounts taken from your account match exactly. Note which checks have been written but not yet cashed so that you are sure to have enough money in your account if the check is cashed much later than you expected.

3. Gather all deposit receipts and paycheck stubsincluding direct deposit receipts. Check to make sure that each deposit is correctly noted on on your account.

4. Make sure that the difference is the amount in your checking account.

Hold onto all your debit card receipts throughout the month as well; organize them by date, and note what the receipt is from if it is not readily apparent. Match these transactions to your online account, too. Don't trust your bank - or your memory - to keep track of your money. Take a few minutes to balance your accounts; it will pay dividends in peace of mind.

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