How to balance a checkbook
Compare your check register with your bank statement: tick off every check and deposit that has cleared, add deposits still in transit to the bank's balance, subtract checks that haven't cleared, and record any fees or interest in your register. When you're done, the two balances should match.
Five steps
- Bring your register up to date. Every check, deposit, card payment and transfer since last time. If you don't have one, start with our free check register.
- Tick off what cleared. Go through the statement line by line and mark each matching item in your register.
- Add what the bank doesn't know yet. Start with the statement's ending balance, add deposits you made after the statement date, and subtract checks you wrote that haven't cleared (outstanding checks).
- Add what you didn't know. Record bank fees, interest and automatic payments from the statement in your register.
- Compare. The adjusted bank balance and your register balance should be equal.
Example
| Bank side | Amount |
|---|---|
| Statement ending balance, Oct 31 | $8,420.00 |
| + Deposit in transit (Oct 31) | $1,500.00 |
| − Outstanding check #1047 | −$1,250.00 |
| − Outstanding check #1049 | −$310.00 |
| Adjusted bank balance | $8,360.00 |
| Register side | Amount |
|---|---|
| Register balance before reconciling | $8,372.00 |
| − Monthly service fee (from statement) | −$15.00 |
| + Interest (from statement) | $3.00 |
| Adjusted register balance | $8,360.00 |
When it doesn't match
- Is the difference exactly the amount of one check or deposit? It's probably missing or entered twice.
- Is the difference divisible by 9? Two digits are likely swapped, like $452 written as $425.
- Is it twice an amount? Something was added instead of subtracted.
- Is a check number missing? A voided check should still be in the register, marked VOID. See how to void a check.
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Print a checkQuestions
How often should I balance my checkbook?
Every month, when the statement arrives. Businesses that write many checks often do it weekly from online banking.
Do I still need to balance a checkbook with online banking?
Online banking only shows what has cleared. Checks you've written but that haven't been cashed are still money you owe, and only your register shows them.
What is an outstanding check?
A check you've written and recorded that hasn't cleared your bank yet. Checks outstanding for months are worth a follow-up; see how long a check is good for.