by John D Carmack

Created on: July 27, 2011   Last Updated: July 28, 2011

Checks, whether electronic or paper, are convenient ways to pay bills and send others money. You can then keep track of your drafts and deposits in a checkbook register. However, what if you make a mistake? What if the bank makes a mistake? What if you forget to write down an ATM withdrawal? These situations can potentially be expensive because an overdraft can result in fees, some of which may be charged for every day in which the account is overdraft.

This is why it is necessary to regularly balance a checkbook register.  Most people will balance their checkbook at least once a month when the bank statement arrives in the mail. It is advisable to do this as soon as possible in order to make it easier to find any errors within a minimum of transactions.

Once you have the statement, get the checkbook register and a pen. A calculator is also highly recommended. Select a well-lit area that is suitable for reading and writing and has a minimum of distractions. All of these precautions should make it easier to find mistakes and prevent new ones.

The next step will be to make sure all recent transactions have been entered. If you haven’t yet recorded all ATM, debit or deposit transactions into the checkbook register, do this first. Make sure that all checks have been entered as well and that the last check entered into the register is one less than the first one in the working checkbook.

Next, for each cleared transaction in the bank statement, check off the corresponding transaction in the checkbook register in the column provided (it will have a checkmark at the top of the column). You should place a checkmark beside the transaction by the item in the statement as well to ensure you have reviewed every transaction.  In the end, you may or may not have uncleared items in the checkbook register, which is fine because those will be dealt with in succeeding steps. However, all transactions in the statement should be reflected in the checkbook register. If there are any items unchecked in the statement, they should be investigated and accounted for as soon as possible.

Next, all uncleared deposits and other credits should be listed in chronological order on a sheet of paper. Many bank statements will provide a space in which to do this. A list of credits should be written down and then rechecked against the checkbook register to ensure none were missed. Now, add up all of the deposits and credits.

Now the same should be done for uncleared debits, whether

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