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STEPS FOR RECONCILING
In your checkbook, make a checkmark in the appropriate box for each check returned or noted on your statement. In addition, also mark all ATM or other electronic transactions, and all deposits. This way, you will be able to identify all transactions recorded by the bank or financial institution handling your checking account.
Record in your check register any transactions listed on your bank statement that were not recorded in your register. This may include ATM or debit transactions, bank fees, etc.
The back of your bank’s statement will usually have a checking reconciliation form. Use this form to reconcile your checking account. The form may vary, but usually includes the following steps:
A. Write the ending balance shown on your bank statement.
B. Add the total amount of deposits made that were after the ending date of the bank statement (outstanding), and therefore do not appear on the statement. The reconciliation form usually has a place where you can list and total these deposits.
C. Subtract the total of any checks still outstanding (checks that you have written that do not show up on your bank statement). The reconciliation form should have a place where you can list and total all outstanding checks.
This amount should then equal the amount listed in your check register or checkbook. If not, you will need to check each of your transactions and also possibly need to check your math.
Bank Account Statement Ending Balance
+ Deposits Outstanding
– Checks Outstanding
= Ending Balance in Checkbook Register
KEEPING YOUR ACCOUNT BALANCED
Every time you record a check, you should be sure to record the transaction in your check register. That way, you will always be sure of your account balance. Record in your check register any time you make a transaction including using an ATM. Also, be sure to keep a running account balance after each transaction.