Checking Your Balance
When you check the bank statement with your own register, it is called reconciling your account. This means your list of transactions are the same as what the bank has. This is a time to check for mistakes. It is important for you and the bank to agree.
There are four steps to balancing your check register with your statement.
1. In your check register, put a check mark on the line for every check and every deposit that is listed on your bank statement.That means the check has “cleared.
2. Write down the numbers and the amounts of the checks that are not on the statement. These are called “outstanding” checks that have not “cleared” yet.
3. Add up the oustanding checks that have not been cleared and any deposits you made since the bank statement not on the statement.
4. Subtract the amount in #3 from the “ending balance“ on the statement.
This number should match the balance you show in your check register.