![]() ![]() Helps you to recognize mistakes or financial fraudīalancing your checkbook or reconciling your records with the bank’s records can help you spot any financial fraud. You should balance your checkbook fairly often and make it a habit. In addition, there are times when pending transactions can skew the available balance in your checking account.Īnd since automatic withdrawals and pending transactions can take days to clear, it's good to be aware of your account balance. Keep a record of all of your transactions in a checkbook register or even a simple notebook as a transaction log. It's useful if you write checks and to keep a record of your moneyįor some, we may still need to write checks to businesses or companies that don’t accept card transactions like paying your rent or small businesses. However, it’s important to reconcile your receipts with your bank information anyway. Today we have almost instant access to our banking transactions, and debit card buys clear almost instantly. Mobile banking apps and online access make it easy to see transactions quickly. We all know that banks make errors too! Do you need to balance a checkbook? You can also use your records to check against the bank’s records of your transactions. It’s a way to track any money in and money out of your accounts. So in simple terms, balancing your checkbook helps you keep a running list of credits and debits. ![]() It is also very helpful for tracking transactions like tips or service charges.īecause all it takes is one error, and your receipt no longer matches what the debit amount was. Today, balancing your checkbook or reconciling your bank account is used as a way to match your bank statements with your record of transactions. The historyīefore online banking and having the ability to check your account balances on cell phones, having a checkbook register was key in making sure one didn’t spend too much and overdraft their checking accounts.Īfter all, check-writing was how you accessed the money in your account, and it could take days in order for that check to clear.īalancing a checkbook, also known as bank reconciliation, helped checkwriters not only keep track of the checks that were written but also gave current information about how much money they had. Here's some background information about this. What does balancing a checkbook even mean?īalancing a checkbook is simply making sure all of your bank account transactions match up to the transactions you've recorded in your checkbook. It’s also every debit and credit transaction.Īlthough it might have been more common for your grandparents, looking over your transactions and receipts is as relevant today as in decades past. It’s not just the checks written you want to keep track of. And knowing how to balance a checkbook is an important aspect of keeping track of your financial health. You might be surprised, but people do still use checks for things like paying bills and giving to charity. When was the last time you wrote a check? In this digital age of banking, writing checks and balancing a checkbook may seem like a thing of the past. ![]()
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