Checkbook Balancing If you’re like most people, balancing a checkbook can seem a bit of a hassle. Who can keep up with all of those debit card swipes, anyway? Why do you need to balance your checkbook? After all, can’t you just log on to your online banking or mobile banking and see your balance? While online and mobile banking can provide you with your available balance as of the minute you log in, this balance doesn’t take into account any items that may be outstanding, or in other words, items that haven’t posted to your account yet, such as checks written, scheduled automatic withdrawals, etc. Therefore, your actual balance could be substantially less than the balance reflected on your online or mobile banking. You need to know your actual balance so that you know when to stop spending, which will help you avoid overdraft fees (a fee the bank charges for each item that tries to clear your account when funds are not available). Keeping a Register The first step in keeping a balanced checkbook is to maintain a check register. If you order checks, a register is generally provided with the order. If not, you may pick up a register at any of our branch locations. The register is simply a small booklet which allows you to record each transaction. To start a register, you will need a starting balance. The starting balance must be an accurate balance that accounts for all outstanding items. If you aren’t sure of your starting balance, stop using the account for a few days to allow everything to clear. You should be ok after a week or so to assume all items have cleared, but do continue to monitor the account online for any surprises that may have been forgotten and therefore weren’t accounted for that didn’t clear within the week. If you have any items that are still outstanding that you know haven’t cleared yet, use the balance listed on online banking as the starting balance and then record those items in the debit column and subtract them from the starting balance. If any surprises pop up, simply subtract them on the register. In this example, let’s say online banking has a balance of $798.16 but you know that you used your debit card for gas in the amount of $34.56 and an automatic withdrawal for insurance is scheduled for $114.85. Use the $798.16 as the starting balance and then subtract the two items that are outstanding. Number Date Transaction Withdrawal 
Deposit $ 8/1/2016 Starting Balance
8/1/2016 Murphy Oil-Gas
8/1/2016 State Farm Insurance
798
16
-34
56
763
60
-114
85
648
75
The $648.75 is the amount of money that you have in your account once all items have cleared, as long as there have not been any accounting mistakes or items not recorded on the register. As deposits are credited throughout the month, such as payroll, tax refunds, etc., record them in the register as a deposit and add them to the balance. Number Date Transaction Withdrawal 
Deposit $ 8/1/2016 Starting Balance
8/1/2016 Murphy Oil-Gas
8/1/2016 State Farm Insurance
798
16
-34
56
763
60
-114
85
648
75
1580
89
8/14/2016 Payroll
932
14
This is your record of your transactions. The bank also keeps a record of your transactions and sends you a copy each month via a monthly statement. You may get the statement online in the form of an e‐
statement, or you may get a paper statement in the mail. Regardless of how you receive your statement, you should immediately open the statement and inspect it for errors, such as fraudulent transactions, or transactions that may have cleared for an incorrect amount. Report any errors to the bank as quickly as possible following the instructions on the back of the statement or in the e‐mail notification, in the event you receive e‐statements. Balancing Now, it is time to balance your register to the statement. This will help you locate any errors on your register or any errors made by the bank. Use the template on the back of the bank statement to help you reconcile the records. Let’s use the following register and statement to reconcile. Number Date Transaction Withdrawal 
Deposit $ 8/1/2016 Starting Balance
8/1/2016 Murphy Oil-Gas
8/1/2016 State Farm Insurance
16
-34
56
763
60
-114
85
648
75
1580
89
8/14/2016 Payroll
1481
798
932
14
8/15/2016 Wal-Mart
-67
32
1513
57
8/17/2016 Murphy Oil-Gas
-28
76
1484
81
8/17/2016 Nationstar Mortgage
-682
27
802
54
8/17/2016 Credit Card Payment
-25
50
777 04
-125
50
651
54
1583
68
8/19/2016 Daycare
8/27/2016 Payroll
932
14
8/30/2016 Kroger
9/1/2016 State Farm Insurance
9/3/2016 Murphy Oil-Gas
-132
47
1451
21
-114
85
1336
36
-36
74
1299
62
Statement 08/01/2016 POS Murphy Oil ‐34.56 $763.60 08/03/2016 ACH Debit State Farm In ‐114.85 $648.75 08/14/2016 ACH Credit Payroll 932.14 $1580.89 08/16/2016 POS Wal‐Mart ‐67.32 $1,513.57 08/17/2016 ACH Debit Nationstar ‐682.27 $831.30 08/17/2016 POS Murphy Oil ‐28.76 $802.54 08/17/2016 ACH Debit Credit Card ‐25.50 $777.04 08/27/2016 ACH Credit Payroll 932.14 $1,709.18 08/28/2016 #1481 ‐125.50 $1583.68 08/30/2016 Interest Credit 2.51 $1586.19 To balance the statement to the register, you must compare the transactions listed on each. Notice the ending balance on the register does not match the ending balance on the statement. This is caused by both the register and the statement containing items that aren’t listed on the other. In order to balance, first, record any transactions listed on the statement that aren’t listed on the register. In this example, an interest credit was made on 08/30/2016 for $2.51. This should be added on your register, and will give you a new ending balance of $1,302.13. Next, identify the items that are on your register that were not listed on the statement. In this example, the statement cut on 08/30/2016 and did not contain the purchases to Kroger and Murphy Oil or the automatic debit to State Farm Insurance. These items had not cleared yet at the time the statement was cut, and therefore should be subtracted from the ending balance of the statement. This will make the ending balance of the statement $1302.13. Now your statement balance matches your register balance, and you are balanced! Ending Register Balance: $1,299.62 Less (minus) Debits on Statement Not Listed on Register: $0.00 Plus credits on statement not listed on register: $2.51 (Interest Credit) New Register Balance: $1302.13 Ending Statement Balance: $1,586.19 Less (minus) debits on register not listed on stmt: $284.06 (Kroger, Murphy Oil, & State Farm) Plus credits on register not listed on statement: $0.00 New Statement Balance: $1,302.13 The “New Register Balance” and the “New Statement Balance” should match. If not, review all of the transactions on each until the discrepancy is resolved. Don’t forget to double check the addition and subtraction on the register. If you still aren’t able to locate the discrepancy, you can always stop by one of our branches for assistance. Again, if items are listed on the statement that you believe weren’t authorized, or items aren’t listed, such as payroll deposits, etc. that you believe are missing, contact your local branch as quickly as possible following the instructions on the back of the statement or in your e‐mail notification for e‐
statements.