Also subtract any bank charges, such as ATM (Automated Teller Machine) fees. This is called “balancing the checkbook.” As you compare the checks that have cleared with the listing in the register, check each off with an “X” or check mark. Whenever you receive your bank statement, check to see if the balance agrees with your checkbook. (This is not good!) Most banks charge substantial fees to the account owner for bounced checks, not the person to whom the check is made out. If more money is not put into the checking account at this point, the checks will “bounce,” or not clear with sufficient funds. Don’t let the money get low-if the account balance goes into negative numbers, the account does not have enough money to cover the checks. Deposits are usually written in the positive column (+, or credit). By keeping tabs on deposits and withdrawals, you will hopefully not become overdrawn on your account.Īlong with making out checks (taking out money), keep a record of deposits made in the checkbook register. In the proper column, list the check number, who the check is made out to (and any other important information), the amount in the negative (-, or debit) column, and subtract the check amount from the last balance.īalancing a checkbook involves reconciling one’s bank statement with the record that you yourself have kept track of in expenses and deposits. Whenever you write a check, write the amount in the ledger booklet most banks give with the checks. For example, keep a running balance of distributed checks in a check ledger. To keep a healthy checkbook, there are several things a person can do. It is just a matter of checks and balances-or debits and credits-and a little bit of simple mathematics. There really is no “art” to keeping a checkbook. For others, it is not depositing enough money to cover written checks. For some people, forgetting to enter checks written against or deposits made into the account creates the biggest balancing problems. Balancing a checkbook is often a challenge.
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