Balancing Your Checkbook
Whenever you receive a statement from a financial institution, it’s a good idea to check that statement for accuracy. Balancing your checkbook helps you keep track of your spending and make sure that the balance of your account agrees with your own records. By following these easy steps, you can keep your finances in order and protect against identity theft and clerical errors.
Step 1: Compare balances.
Add up the transactions listed in your checkbook to come up with your own balance, then compare that balance to the ending balance listed on the first page of your statement.
Do you calculate a different amount than the one shown on your statement? Don’t worry. Because transactions may take several days to fully process and because you may have spent money or made deposits after your statement was printed, it is normal to have several transactions that aren’t recorded on your latest statement. This means that the ending balance listed on your statement may not be the same as the balance you calculate when you add up all of the transactions recorded in your checkbook.
If the balance you calculate and your ending balance don’t match, follow steps 2-8 to make sure that the balance on your statement is accurate.
Step 2: Compare transactions.
Compare the transactions recorded in your checkbook to the transactions listed on your statement. First, take note of any transactions recorded in your checkbook but not yet listed on your statement. You’ll need to use that information in steps 4 and 6.
Next, look for transactions listed on your statement but not recorded in your checkbook. If there are any transactions you forgot to record, write them down in your checkbook and recalculate your balance. If your account is interest-bearing, you will also need to add the amount of the interest that has been credited to your account, and you may need to subtract the cost of any service charges.
If you find any transactions which you do not remember authorizing, please call us at 859-879-9455. If your debit card or ATM card is lost or stolen, call 1-800-264-4274, ext. 233 or 234 immediately.
Step 3: Copy your ending balance.
You'll find a copy of the helpful worksheet shown below on the back side of your statement. Start by recording your ending balance (listed on the first page of your statement) on the first line on the right-hand side of the worksheet.
Step 4: List deposits not credited.
Use next three lines to list any deposits recorded in your checkbook but not yet listed on your statement. If there are no deposits recorded in your checkbook but not yet listed on your statement, simply write 0.00.
Step 5: Add deposits not credited.
Add the amounts listed on the first four lines and write the total on the next line.
Step 6: List outstanding checks (and other payments).
Use the second two columns of the chart to list any checks, withdrawals, or electronic payments recorded in your checkbook but not yet listed on your statement. You may also want to use the first column to write a brief description or the check number of each transaction.
Step 7: Add outstanding checks (and other payments).
On the last line of the chart, add the amounts you listed above. Copy this total to the next empty line on the right-hand side of the page.
Step 8: Subtract outstanding checks.
Subtract the total on the sixth line from the amount on the line above. This amount should agree with the total you’ve calculated using your checkbook.
If the amounts do not agree, check your work on the previous steps. Make sure that you didn’t accidentally skip over any transaction listed on your statement or recorded in your checkbook.