How to Learn Bank Reconciliation
- 1). Understand bank reconciliation. When you write and deposit checks, you record the amount of money that is going out and coming into your checking account. Your bank does the same thing as it is presented with new deposits or new checks to be paid from your bank account. The process of bank reconciliation is making sure that you and the bank are showing the same figures in your bank account.
- 2). Appreciate the necessity of bank reconciliation. Sometimes people forget to record a check that they wrote or a deposit that they have made. This can result in bounced checks, which is both expensive and criminally liable in worst case scenarios. By learning bank reconciliation, you can make sure that you verify that your records match the bank’s records on a monthly basis.
- 3). Review your checkbook. Start with balance shown in your checkbook. Subtract any service charges or deductions that are shown on your bank statement but not recorded in your checkbook. Then, add any credits (such as interest) that are included in your bank statement but not in your checkbook. Write down the final amount for your checkbook.
- 4). Look at your bank statement. Start with the bank statement’s ending balance. Add any deposits that are recorded in your checkbook but not shown on your bank statement. Then, subtract any checks, ATM withdrawals or other withdrawals that are not shown on your bank statement. Write down the final amount for your bank statement.
- 5). Determine if the two numbers match. If they do, then you have successfully reconciled your bank statement, and you have learned bank reconciliation.
- 6). Figure out why the numbers do not match. If you have two different numbers after the reconciliation process, then you have some investigative work to do. Do these steps again and see if the problem was just a math error. If you cannot figure out why you are unable to reconcile your checkbook with your bank statement, then contact your bank for further assistance.
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