1. Balancing a Check Register:

2. Check Register: A personal record of the transactions against a checking account

3. Balancing a Check Register: Check Register: A personal record of the transactions against a checking account Balancing: Calculating the balance of the account after all transactions are processed

4. Reasons to Keep a Balanced Check Register: 1.Control - Know exactly how much is in an account at any given time 2.Ease of Access - Websites can be down, a book is always available 3.Record of Payment - Know the exact dates and check numbers used to pay bills 4.Budgeting - Identify recurring charges and places to reduce expenses

5. Check Registers Should Include: Check number (if applicable) Type of transaction Date of the transaction or that the check was written Name of who the check was written to Description Amount of the Transaction Account balance after the transaction is processed

6. Example: On March 28 th you write a check #117 to your friend Peter Piper for a peck of pickled peppers. The cost of the peppers is $20. Record the transaction on the register below. Check No. DateDescription Payment/ Debit Deposit/ Credit FeesBalance -3/23/12Balance Brought Forward$4,617.21 D3/25/12Deposit - Paycheck$785.34$5,402.55 1163/27/12Electrolux – Electric Bill$112.44$5,290.11

7. Example: On March 29 th you withdraw $20 from an ATM. Record the transaction in the check register. Check No. DateDescription Payment/ Debit Deposit/ Credit FeesBalance -3/23/12Balance Brought Forward$4,617.21 D3/25/12Deposit - Paycheck$785.34$5,402.55 1163/27/12Electrolux – Electric Bill$112.44$5,290.11

8. Reconciling a Bank Statement:

9. Reconcile: To make adjustments to a check register and bank statement to make the balances equal each other.

10. How to Reconcile a Bank 1.Compare the check register to the bank statement – look for transactions that appear on one and not the other

11. How to Reconcile a Bank 1.Compare the check register to the bank statement – look for transactions that appear on one and not the other 2.Verify that any differences are accurate

12. How to Reconcile a Bank 1.Compare the check register to the bank statement – look for transactions that appear on one and not the other 2.Verify that any differences are accurate 3.Add any transactions to the check register that appear on the statement and not the register

13. How to Reconcile a Bank 1.Compare the check register to the bank statement – look for transactions that appear on one and not the other 2.Verify that any differences are accurate 3.Add any transactions to the check register that appear on the statement and not the register 4.Add any transactions to the statement that appear in the register and not on the statement