Help with Balancing Checkbook

[Cassandra]

When I received my statement a couple days ago I looked at the balance this time and I noticed that my ledger showed I had about $44 more dollars than my statement showed. So when I went to the bank to make a deposit, I also asked for my balance and compared that to my ledger balance- and I'm definitely off by $44.28 (the bank being less than my ledger).

So I did some hunting. And I found when I became off: March 26th of this year. Apparently, a check ($53.92) I wrote to Charter Cable never got cashed. I looked through my statements from March to now and none of them show that check cashed. I called the bank to be sure, and that check has not been cashed. I intend to call Charter to find out if they received any payment for March. It must have gotten lost in the mail because I cannot find that check anywhere in my apartment.

I went back further and from the start of this checking account until March 26th my ledger matches the statements penny for penny.

The amount my ledger is over is also growing. In early April, I'm over by $41.40. Now I'm over by $44.28.

I'm wondering if, on another piece of paper, I should "redo" my ledger from March 26th on but not include the Charter check. Maybe that will show where the $40 went?

And if a check hasn't been cashed, shouldn't my statements show more than my ledger instead of the other way around?

I'm very confused...

[maat55]

I think you should use a software like quicken or other that has an reconcile. You would find these problems much quicker. You will see every check that is not cashed everytime you reconcile. You will also find mistakes on the numbers because your program will not reconcile if you are off a penny.

[Cassandra]

Thanks for that tip! I think my dad has Quicken, I'll try to steal it from him.

[kork13]

"steal" is such a strong word.... I've always preferred "requisition", or perhaps "borrow without permission nor intent to return"

[maat55]

"steal" is such a strong word.... I've always preferred "requisition", or perhaps "borrow without permission nor intent to return"

I guess a five finger discount is out of the question.

[kork13]

I guess a five finger discount is out of the question.

once again, that depends entirely upon your perspective.

[disneysteve]

I think you should use a software like quicken or other that has an reconcile.

That will work, of course, but I don't understand why people find it necessary to go that route. Our checkbook gets balanced every month with a pen, a red marker and a calculator. It takes 10-15 minutes once a month. It is so simple that my 12-year-old daughter has been balancing our family checkbook for the past 2 years or so. It started out as an arithmetic exercise but grew into a personal finance lesson in the costs of running our lives and household. If she can do it, surely an adult can manage it.

OP, obviously this problem wouldn't have arisen if you were balancing your checkbook monthly because you would have found this error back in March. Have you looked at your Charter Cable bills since March? Do they show an outstanding balance, late fees, etc.? I'm sure they wouldn't just ignore the fact that you didn't pay them one month.

Also, the amount your balance is off doesn't match the uncashed check, meaning there are other errors you haven't caught. I'd suggest sitting down one evening with your statements from the past 5 months and balancing your checkbook to find the errors and bring everything back in line.

[nanda603]

Balancing checkbook

Cassandra,

You are correct, if a check has not yet cleared, the bank would have a higher balnance than your ledger. I suggest going over your statements and looking for any fees which you may not have posted into your ledger. Did you buy checks and have the amount paid directly through your checking account? Did you bounce any checks? Is there a monthly service charge? Also look for any interest paid to add to your ledger. If your account still doesn't balance, recheck your math, then recheck your math, and then recheck your math one more time.

[Well Spent]

Question for DisneySteve (other posters' answers welcome, too)

I also balance my checkbook by hand. Do you do your monthly budget on pen and paper, too, or do you use software for that?

The reason I ask is that I'm beginning to get a handle on my finances but I don't have a computer at home. I'm wondering if a paper & pen budget is just as easy.

[disneysteve]

We don't use a budget.

I do plan/record our savings contributions on paper. I do use a 1-page spreadsheet document on the computer for tracking our investment portfolio.

[loulou]

Well, the fact that the amount you're "over" by is less than the amount of the check means you most likely missed a deposit somewhere.

Also, you were previously off $41.40 and now you're off $44.28. That's a difference of $2.88, which is divisible by 9, so is most likely a transposition error. (i.e. you made a purchase for 5.20 and wrote down 2.50)

Honestly, I like to know where I'm off so I might just redo my check register, but I pay everything with a cc so I wouldn't have that many transactions. Good luck! I know what a pain this can be!

[loulou]

Oh wait, I just re-read your post. Since you found a check that hasn't been cashed that you wrote, your ledger should be less than the bank. Now I would definitely redo my ledger.

[maat55]

[QUOTE]

That will work, of course, but I don't understand why people find it necessary to go that route. Our checkbook gets balanced every month with a pen, a red marker and a calculator.

Dinosaur. I have always used Quikbooks for my business. The computer works much better for me. Hey, we also have busses that fly now.

[disneysteve]

[QUOTE=maat55;183504]

Dinosaur. I have always used Quikbooks for my business. The computer works much better for me.

I think a business is different as you likely have many more transactions to keep track of.

I think many people automatically assume it is better or faster or easier to do things by computer and even though I am very tech savvy and spend hours a day online, I think some tasks are better suited to the old-fashioned way.

I can balance my checkbook in about 10 minutes/month with paper and pencil. Probably 10 months out of the year, it balances first time through and I'm done. The other times, I usually find my error in a couple of minutes. Very rarely does an elusive error suck up any significant amount of time.

[Cassandra]

I keep my ledger up to date. Every time I use my debit card, write a check, etc. I make sure I write it down immediately. I don't often compare my statements because I usually assume I'm correct (obviously not the best plan).

Charter told me that there are no missed payments. None were late either. Mistake by my bank perhaps? Perhaps that check did clear and for some reason the bank isn't showing it? But Charter is a 100% sure that they received my payment for March.

I'm going through my receipts to make sure I recorded everything starting in March. I'm going to redo my ledger from March 26th on.