How To How to Balance a Checkbook Read the Article Open Share Drawer Share this:Click to share on Twitter (Opens in new window)Click to share on Facebook (Opens in new window)Click to share on Tumblr (Opens in new window)Click to share on Pinterest (Opens in new window)Click to share on LinkedIn (Opens in new window) Written by Mint.com Published Jan 20, 2012 4 min read Advertising Disclosure The views expressed on this blog are those of the bloggers, and not necessarily those of Intuit. Third-party blogger may have received compensation for their time and services. Click here to read full disclosure on third-party bloggers. This blog does not provide legal, financial, accounting or tax advice. The content on this blog is "as is" and carries no warranties. Intuit does not warrant or guarantee the accuracy, reliability, and completeness of the content on this blog. After 20 days, comments are closed on posts. Intuit may, but has no obligation to, monitor comments. Comments that include profanity or abusive language will not be posted. Click here to read full Terms of Service. Balancing a checkbook has become something of a lost art in this era of digital access to accounts, online bill payments, debit cards, and other forms of electronic money. In fact, some people have done away with actual, physical checkbooks entirely by paying their bills entirely online, with debit cards, or by automatic payment. Knowing how to balance a checking account is still important, maybe even more so in this era of e-money. It’s vital to know what’s in your account and where your money goes each month, since it’s the only way you will know for sure how much money you have, avoid overdrafts and completely understand your financial situation. With all of that in mind, here is how to balance your checkbook in five easy steps: Step 1: Keep Records You must keep records of all of your deposits and purchases if you want to have any hope of balancing your checking account. This means that every time you use your debit card, write a check, deposit a check, make a withdrawal, transfer money, or make automated payments or deposits, you need to record it in your check register. Write them in exactly, since exact amounts are key to balancing your account. If you use an accounting program or app, like mint.com’s free money management tools, these amounts will be electronically recorded for you, which will help you stay organized if you forget to write something down. Step 2: Obtain Your Bank Statement It seems obvious, but this is a vital step. Many people never even look at their bank statements, especially when they’re paperless and sent via email. It’s vital that you access and save your statements, even when they’re electronic. If you’re not sure how to get your statement, log into your bank account and check under “settings.” There is usually an option there to get your statement by mail, by email, or by both. Depending on your financial institution, you might also be able to integrate your statements with your accounting software, so that your statement automatically gets aligned with the records you’ve been keeping. Quicken has software tools that aggregate all your account information for you into an easy-to-read format. Step 3: Find the Last Transaction It’s important that you understand where the statement ends and when the bank stopped figuring amounts. This will be a specific date and time, and your statement will have this marked at the top for your information. You’ll also want to look for the last transaction to determine whether it’s a payment or a deposit. This will let you know the window of time that you’re looking at and give you the baseline figure from which you can balance your checking account. Record the balance that is at the last transaction on your account and then compare that balance to the one that’s after the same transaction in your records. If the number is the same, lucky you! Your account has balanced. If it’s not, however, it’s time for the next step. Step 4: Check What’s Cleared and What Hasn’t The fact is, not all payments or deposits from or into a checking account clear immediately, and you’ll need to determine the status of all pending transactions in order to balance your account. Go through the statement line-by-line and check off which payments and deposits have cleared, and which are still outstanding. If you’re using software, you might be able to do this electronically. If not, you’ll need to do this by hand. It’s somewhat tedious but it’s at the heart of balancing a checkbook, since you need to know exactly how your records match up with your bank’s. Step 5: Subtract or Add as Necessary Here’s the tricky part. If you have any deposits that haven’t cleared, you’ll need to subtract them from the bank’s balance. Likewise, if you have any payments that haven’t cleared, you’ll need to add those to your bank’s balance. You’ll also want to look at your bank statement for any fees that might have been applied to your account such as, overdrafts, ATM transactions, or monthly surcharges. Then, subtract these from the balance in your checking account to bring the two balances in line with one another. Ideally, once you’ve done all this, the balances should match exactly. If they don’t, it means that there is an error somewhere, and it’s usually going to be something you left out of your records. Go back over step 4 and 5 until you get the balances to match. Congratulations! When you’ve made it this far, you’ve balanced your checking account. You’re all set — until you have to do it all over again in a month. Vivian Wagner is a freelance writer in New Concord, Ohio. Vivian blogs via Contently.com. Previous Post Majoring in Debt, Minoring in College Next Post Should I Buy Insurance? A Visual Guide Written by Mint.com More from Mint.com Browse Related Articles Mint App News Intuit Credit Karma welcomes all Minters! Retirement 101 5 Things the SECURE 2.0 Act changes about retirement Home Buying 101 What Are Homeowners Association (HOA) Fees and What Do … Financial Planning What Are Tax Deductions and Credits? 20 Ways To Save on… Financial Planning What Is Income Tax and How Is It Calculated? Investing 101 The 15 Best Investments for 2023 Investing 101 How To Buy Stocks: A Beginner’s Guide Investing 101 What Is Real Estate Wholesaling? Life What Is A Brushing Scam? Financial Planning WTFinance: Annuities vs Life Insurance