Help with Balancing Checkbook

[Cassandra]

I found it!

The problem didn't arise in March. I assumed that the problem started in March because my bank didn't show that check cleared. I think the reason I thought I was off in by $41 in March is because I write down deposits/withdraws immediately, but they take a few days to clear in my bank.

I forgot to write down a trip to the gas station in May. I must have lost the receipt because I don't have it anymore. It came to $43.93, so I'm still off by a few pennies. At least now I know where that money went to.

[maat55]

I found it!

The problem didn't arise in March. I assumed that the problem started in March because my bank didn't show that check cleared. I think the reason I thought I was off in by $41 in March is because I write down deposits/withdraws immediately, but they take a few days to clear in my bank.

I forgot to write down a trip to the gas station in May. I must have lost the receipt because I don't have it anymore. It came to $43.93, so I'm still off by a few pennies. At least now I know where that money went to.

Posting is most important with any system you use.

[Cassandra]

Posting is most important with any system you use.

I agree. Definitely have to be attentive in keeping track of my receipts.

[maat55]

I agree. Definitely have to be attentive in keeping track of my receipts.

I used to post my entries every thursday before heading to the golf course. Now, sometimes I catch up the whole month with my bank statement. I'm getting very lazy.

[cptacek]

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).

Now all you have to do when you get your statement is go through it line by line and make a check mark besides the things that have cleared in both places (check it off on your ledger and on the statement). If something isn't checked once you are through the statement, start digging.

I actually have about $500 of non-cleared items on my checkbook from over the past 6 years. Some are checks that were never cashed, some are debit card transactions that maybe got lost at the vendor, and some, maybe I wrote them down as a debit but actually paid in cash and just made a mistake. I use that as my buffer so I don't overdraw, and when I balance, I just add that amount back in and balance to the penny.

[Cassandra]

Now all you have to do when you get your statement is go through it line by line and make a check mark besides the things that have cleared in both places (check it off on your ledger and on the statement). If something isn't checked once you are through the statement, start digging.

That's a good idea. I'll start doing that. Thank you!

[disneysteve]

Now all you have to do when you get your statement is go through it line by line and make a check mark besides the things that have cleared in both places (check it off on your ledger and on the statement). If something isn't checked once you are through the statement, start digging.

Actually, a lot of things will be unchecked because they occurred after the statement date or haven't cleared yet. What you need to do is add up the unchecked debits and unchecked credits and plug them into this formula:

(Statement balance + unchecked credits) - unchecked debits = X

X should equal your ledger balance. If it doesn't, then you have to start digging.

[maat55]

I would still recommend an software like quicken mainly because it's easier to recognize checked and unchecked items. Typed items are better recognized than written ones. If you switch, you'll never go back.

Steve being a doc, I'm surprised you do not use one. (Thats a poor hand writing jab)

[disneysteve]

Steve being a doc, I'm surprised you do not use one. (Thats a poor hand writing jab)

I happen to have very good handwriting. The nurses at the hospital and the pharmacists always loved me. We do electronic prescribing now so it is no longer an issue, though.

As for computerizing my checking account, I tried Quicken for a while and it was way too much of a pain compared to paper and pencil. I quickly went back to my hand written ledger. I just find it so much easier to write a check and record it in the ledger rather than having to go to the computer and open Quicken (and boot up the system if not already on) and record it there. Just seemed to be more trouble than it was worth.

To each his own.

[kork13]

I've had a problem with Quicken and similar programs.... Every time I use it, over time it always decides to tell me that my accounts aren't lining up...in spite of me always checking each transaction between my bank, the program, and what I know i've spent.

That and the fact that I've yet to find one that's truly easy to use and can actually make good use of the information you're tracking (formulating/tracking budgets, adequate/customizable categories, etc.)

[maat55]

I've always used quikbooks. I only say quicken because I assumed it was the personal alternative to quikbooks. I'm forced to use mine and am happy too.

Although, getting used to logging expenses paid by CC and paying them off with two accounts, may become a challenge.

[natewebco]

I've been using Quicken for about 10 years now and have been very happy with it. It makes it so much easier to balance the checkbook when you can automatically download transactions from your bank and automatically reconcile everything. You can still view each of the transactions to make sure it is valid, but you don't have to enter everything in. Each transaction is filled in automatically.

Quicken also helps you track a budget, manage multiple accounts (checking, savings, credit card, investment, loan, you name it). It's the best personal money management program available.

You can get Quicken for up to 45% off here: http://www.squidoo.com/discount-on-quicken

[shaggy]

I use a free software program called Ace Money Lite. Runs on my computer and I find it much easier than Quicken.

[johntomba]

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...

Your bank should have online software for you. Have you looked into this?