Friday, August 12, 2011

Normally bank issue statements at the end of every month

Always register all checks, debit card payments or withdrawals, deposits, and automatic payments in your account register. This activity helps with reconciling your statement at the end of the month. Normally bank issue statements at the end of every month but with online banking you are able to print out your statements at any time.

To reconcile your checking account; you will need your check book; check register; your bank statement; your reconciliation form and a pencil. Your check register is your daily recording of payments and deposits. The column titles on your check register must be precise and allows for easy checking and balancing. Typical check register columns include: Check number, Date of transaction; Description of transaction; Check mark; Debit (-); Credit (+) and Balance.

DEBITS: All money paid for items charged to your account including checks written; debit card purchases; ATM cash withdrawals; fees and charges.

CREDITS: All money put into your account including deposits you make and interest you might earn.

Create a worksheet in Excel or other with these particulars and you have yourself your check register. Remember to enter your daily monetary transactions in this file or register.

We reconcile monthly; and we have received our bank statement from the bank. First let’s prepare a reconciliation form; you may find one on the back of your statement or simply add this information to your check register: Check book balance; bank balance; outstanding checks; and total outstanding checks.

Reconciling your checking account saves you headaches in the long run; with overdraft charges; bounced check complications; ruined credit reputations; Happy reconciling!
  1. On your check register; in the check mark column tick the checks that have already been cashed; or the checks appearing in your bank statement; then put an "o" for checks that are outstanding or not found in the bank statement.
  2. List all ATM transactions; bank fees; deposits and other automatic transactions in your check book register from your bank statement.
  3. Total all the checks that are not listed in your bank statement. These checks are still pending withdrawal (referred to as outstanding checks). Subtract your total amount from the bank statement balance.

This amount should equal the amount in your check register. If not, you will need to check each of your transactions and also possibly need to check your math.

Formula: Bank Account Statement Ending Balance + Deposits Outstanding - Checks Outstanding = Ending Balance in Checkbook Register.

Start your personal checking account today!


Now, You are reading :
Normally bank issue statements at the end of every month

Post a Comment

Your comments will be moderation.
Thank you...!!