Balancing a checkbook can be incredibly easy, but if you were never taught how to properly handle one then it might be something that you do wrong…or don’t do at all! If you’re continuously amazed at the amount of money your bank claims is in your checking account compared to the amount of money you think you have in your checking account, then maybe it’s time to go back to basics and figure out how to balance your checkbook and how to keep it balanced.

You have three options when the time comes to get your existing checkbook balanced:

1. Order copies of your bank statements for however long your account hasn’t been accurately recorded. This can be a matter of a couple months, or several years, and although it can be a tedious process (you’ll have to go line-by-line to make sure what you have in your checkbook is the same as what your statements say), if you’re looking for precision then it’s the only way to make sure you have it right down to the very penny.

2. Make sure all your checks have cleared, then just start anew with whatever balance the bank says you have. If you know all the checks you have written have already been debited from your account, and every debit has cleared, then you can just start a new line in your checkbook with whatever balance your bank says you have. This is a little sloppier, but it can save you a great deal of time.

3. Close your bank account and start all over. If you’re completely flabbergasted by how messed up your checkbook is you can always close the account out and start all over with a different checking account. This can be a bit of a pain because you’ll have to order new checks and switch any automatic transactions (direct deposits, automatic bill payments), but it’s a guaranteed way of getting a clean slate so you can start keeping better track of your money.

If you are in the fortunate position of trying to find out how to balance a checkbook because you have a brand new account, you won’t have to worry about reconciling a bunch of transactions from the past.

Here is how to keep your checkbook balanced and maintained:

1. Write down every single transaction in chronological order as it occurs. Whether you carry your checkbook register with you as you spend, or if you prefer to do a nightly balancing with the day’s receipts, the important thing is to write everything down. This means every debit card transaction, every check written, every deposit, and every trip to the ATM has to be recorded. Don’t forget to write down any fees that your bank pulls from your account.

2. Write the date, merchant name, amount, and explanation into the checkbook register. The line in your register might look a little something like this:

5/30, Corner Grocery Debit Card Purchase, $83.88

Be sure to write down any account or invoice numbers in case you need to reference them later.

3. Keep a running tally of your balance. Instead of just writing down how much a transaction was, keep constant tabs on your balance. For example, if your balance was $455.23 before your visit to the Corner Grocery, be sure to notate that now your balance is now $371.35.

4. Reconcile your check register with your statements as they arrive. After your account statement arrives from your bank you should sit down and make sure that your check register says the same things as the official statement from your bank. Sometimes people accidently transpose numbers, or maybe just forget to write a transaction down, and this can be easily spotted on a statement if you take the time to look.

5. If you can’t reconcile the two, contact your bank. If you’ve tried everything to get your check register balance to match the bank statement and it just isn’t working, contact your bank and speak to a representative. Sometimes a second set of eyes can do wonders.

The trick to keeping your checkbook balanced is to be persistent and pay attention to detail. Spending the time to keep your checkbook balanced might annoy you, but it’s certainly better than paying all the insufficient funds fees you’ll probably run into when you start losing sense of how much money is actually in your account.

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2. The Scoop On Balance Transfer or (In)Convenience Checks
3. How to Balance the National Budget
4. Hot Checks: Lesson Learned…The Hard Way
5. Balance Transfers: How They Work and Do They Help?