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msrose

Is there an easier way to balance your checkbook?

msrose
10 years ago

I use my debit card most of the time, but I treat it like a check and record each purchase in my register. I hate balancing my checkbook, so I usually wait until I'm three months behind and then it takes forever. It never balances the first time, so I have to go back and find my mistake and it's always my mistake, not the banks. Someone told me they quit balancing their checkbook for that reason. I'm thinking there has to be a better way that I don't know about. I thought about just comparing the charges/deposits with those on my bank statement without checking all the adding and substracting, but I don't know if that's a smart thing to do. What do you do?

Comments (39)

  • runninginplace
    10 years ago

    Why would you still be doing this manually!??! Your bank surely has online capacity; you just go in and check your balance. You can use your receipts if you need records of your expenditures to compare.

    There is definitely a better way, and it is right on your computer screen :). I truly can't think of any reason why someone would NOT do it using the online interface.

    Ann

  • msrose
    Original Author
    10 years ago

    Ann - That's the exact type of info I was looking for. I do have an online account, so I can check my balance on there, but how is that any different than knowing your balance when you get a statement in the mail? Does everyone trust doing it that way or do you feel the need to doublecheck the bank's numbers? How does everyone else keep track of the debit card purchases? Do you write it in your register like a check or just keep all your receipts? Do you ust look online to make sure you don't see any odd charges or do you actually compare your purchases with what they show?

  • Fun2BHere
    10 years ago

    You could set up an Excel spreadsheet or use one of the programs like Checkbook to do it.

  • msventoux
    10 years ago

    There's various free apps and programs that function as a check register, though I haven't used any of them. I know several people who use Mint and have been very happy with it. I've used Quicken or QuickBooks at home to track finances, but that involves sitting down and inputting transactions frequently so as to not get behind, then reconciling the accounts.

    I've recently started using YNAB (You Need a Budget) since I finally got an iPhone. You can set up all of your bank and credit card accounts and input the charges on your phone as you make them, and it syncs with the desktop version of the program. That way you can keep your register easily updated and eliminate the paper register. It also keeps track of how much is left in your budget for various categories if you're interested in budgeting. There may be functions to import transactions from the bank for the different financial management software, but I haven't done that before as I like the control of inputting the transactions myself and comparing to what actually cleared the bank.

  • 3katz4me
    10 years ago

    I used to despise that process of reconciling the checkbook. I insisted on getting it to the penny and sometimes it took forever. That was years ago however. I've been using Quicken for over 20 years and have downloaded my bank transactions electronically for many years. I also reconcile in Quicken and it's basically a non-event. By downloading electronically I always get all the transactions and they're always accurate. So my checking account balances to the penny. It's the greatest.

  • msrose
    Original Author
    10 years ago

    I'm really showing my age now, but I don't have an iphone, so no apps for me.

    Can you explain a little more about Quicken. Do you still record your purchases in your register and how do you get those to Quicken? Is it a matter or inputting them yourself?

    This post was edited by msrose on Sun, May 26, 13 at 17:48

  • cyn427 (z. 7, N. VA)
    10 years ago

    It would be a lot easier if you did it every month. Way too much to go through if you wait three months. No wonder you hate it.

  • bestyears
    10 years ago

    I have no idea how many debit card transactions you have in a week, but if you got into the habit of comparing all of your transactions for the week, you should always be fine. The only way the bank's balance will ever be different than it ought to be is if they show different transactions than you do. So if you essentially 'approve' all the + and - transactions each week, you can have confidence that all is fine.

  • maddielee
    10 years ago

    I stopped 'balancing' my checkbook when I became comfortable with online banking, including online bill pay.

    A couple clicks and I immediately know my account balances.

    I quickly check my transactions online a couple times a week.

    On the first and fifteenth of the month (bill paying day), I MAY write the balance down in the checkbook, only because I do still write one check a month. (and my DH will sometimes still use a check on some purchases). Every other payment is done online. Purchases are debit card or cash.

    ML

  • 3katz4me
    10 years ago

    Quicken is software that's installed on my PC. You can set it up to send all of your transactions from the bank to the software over the Internet. You do it on demand when you want. I usually do it every couple days. I no longer record debit card transactions because I just download them online. I started using Quicken because I wanted to know what I spent my money on and to monitor adherence to a budget. Over time I got more interested in tracking investments, net worth, etc. One of the things I like most though is the bank account reconciliation.

    I do record bill payments in the electronic check register in the Quicken software. I do that because they're bigger amounts and I record them right away even though I pay them later on the due date. I just like to see how much of my money is already spoken for and what discretionary $ are left.

    Hope that helps explain it a bit more.

  • runninginplace
    10 years ago

    What bestyears said--basically, the bank balances your account for you, because the transactions are updated including the remaining balance, as they are recorded. Really, it just couldn't BE any easier! Again, what BY said: the only thing you are checking for is to see if there are transactions you didn't perform, and then you can call the bank and report that immediately.

    I guess I'm missing something here, don't really know why anyone would even bother with the other systems. I just log in, pull up my account, check it and *done*. It takes all of literally one minute if you keep up with your account on a regular basis.

    Ann

  • Bumblebeez SC Zone 7
    10 years ago

    Some debit transactions and some bills can take a few days to show up, so it's important to remember those when looking at the balance online. And if you write checks, to deduct all that haven't cleared.

  • jlj48
    10 years ago

    I no longer balance my checking account. When I first got my debit card, I was recording all of my transactions in my checkbook ledger. But that didn't last long. When I get on my online bank account, my purchase is recorded immediately. I check it several times a month to make sure there are no purchases that I did not make and that is it. Everything else is in order. Now that I pay almost all of my bills online, there is a record of that too. It really makes life so much easier.

  • RNmomof2 zone 5
    10 years ago

    Like Gibby, I use Money on my computer. It helps to forecast bills, income, keeps track of categories for taxes, etc. Plus if you ever get audited, it is going to tell you what each item was. Balancing your account takes only minutes.

    I am getting my college graduate a program like this to help her handle her finances. I would like her to be able to forecast her cash flow and not be caught short when bills come due.

  • terezosa / terriks
    10 years ago

    I haven't "balanced" my check book in years. I also look online, and I never use my debit card for purchases, only for getting cash from the ATM, and I only use the ATM at my bank. My husband and I quit using our debit cards for purchases after all three of our kids had their accounts comprised in one way or another. We use our credit cards for probably 90% of our purchases and pay the bill in full each month. So there is very little activity on my checking account. Then of course we can review our CC purchases online very easily.

  • annie1971
    10 years ago

    Online banking or not, banks still make mistakes and you need to be on top of your financial transactions. Why would you ask if there is a way that you don't need to balance your checking account!? I had a bank transaction that subtracted twice what I withdrew (which was many hundreds). I use our debit card as much as I can for convenience. I call occasionally to get balance amounts over the phone and I have an online account that I can verify balances and transactions as often as possible. Don't be passive. You need to stay on top of even the most trivial of transactions.

  • awm03
    10 years ago

    Several years ago, I had trouble installing Quicken on a computer, so switched to a program called Moneydance. It's not quite as good, but does the job well enough.

    I prefer to use an app to keep an eye on our bank balance in addition to using online banking. We don't allow third party access to our accounts, so we still pay bills by check or by initiating an online transaction ourselves.

    My online banking doesn't show payments until they've been cleared. But with Moneydance, I can download bank info and fill in with payments that are in process, so I have a better idea of how much we actually have. Monthly reconciling is easy, using a monthly bank statement & Moneydance's reconciling tools.

    Yes, it's work, but it's a good routine to get into.

    Here is a link that might be useful: Moneydance home

  • kellyeng
    10 years ago

    I don't have a checkbook any longer and I use online banking but I always reconcile my account every week, usually on Sunday. A business once overcharged me by a couple hundred bucks (oops sorry we miskeyed . . . whatever) and I wouldn't have caught the mistake had I not been reconciling.

    Very low-tech but I made my own register and keep in a small three-ringer binder in the desk drawer. Once a week I take out all my receipts from my purse (I keep them in a side pocket in my wallet), enter them to the register then go online to check against what the bank has processed. It balances out to the penny almost always and it makes me feel better.

  • ratherbesewing
    10 years ago

    I guess my Type A personality will be pretty obvious now: I reconcile every month to the penny! I,too, have found small bank errors. Not reconciling is a personal preference, but you have to be aware of outstanding checks. I am also not sure how quickly a debit charge actually appears on your account. The goal is not to bounce and to be able to calculate your account balance if/when you need to. Waiting 3 months to balance? Too much work!

  • runninginplace
    10 years ago

    I realize reading this that once again everyone has such different circumstances-apologies for simply assuming that my own system will work for everyone!

    We also put as many expenses as possible on our credit card account, and pay it completely each month. I'm the only one using our debit card, so *for me* checking online for both the checking and credit accounts is quick, easy and keeps me on top of our expenses.

    Ann

  • jlj48
    10 years ago

    I forgot to mention that I, too rarely use a debit card. I use one credit card that gives cash back. I only use a debit card for cash, and for places that do not take my credit card. My credit card statement is detailed and organized by my shopping habits: gas, department store, grocery stores, ect. So there is actually very little to balance on my online statements.

  • golddust
    10 years ago

    It is called a book keeper. Lol.

    My DH is addicted to checking accounts. We have seven and soon will have eight, when the duplex closes. He has a house account for each house/property. (That is two, soon to be three.) The trust has two accounts. One for the house and the other for general purposes. Another account is for taxes, another for business expenses, etc.

    That is just the way his brain works but it works well for him. They are free accounts but settling eight accounts per month? No thank you.

    My own checking account doesn't go through the book keeper. I use the telephone robot to manage mine. I don't even keep a balance total. I manage it by feel, as in "I feel like I have been spending too much money." Then I stop. Hey! I've never bounced a check!

  • Bumblebeez SC Zone 7
    10 years ago

    My debit card is also set up to run as a credit card - but I don't have linked to a credit account, it just comes out of the checking account- however, sometimes cashiers have trouble with their system and will run the debt card as a credit, which can take 2 days or more to show up on the account. My paypal account comes out of the same checking and that can take 3-4 days to show up.
    Most basic debit comes out immediately.

  • maddielee
    10 years ago

    I have found that the only time my debit card amount does not show up immediately on my bank transactions is when I use it at Walgreen's.

    I wonder why?

    ML

  • allison0704
    10 years ago

    I don't use a debit card on any of my accounts - which currently numbers 17. I don't use registers on 9 of them, but check all of them online weekly. Once you have a system in place, it doesn't take long.

  • Annie Deighnaugh
    10 years ago

    I still balance my checkbook every month, but I don't use a debit card...I charge everything and pay off the charge card once a month...no interest due and I get cash back on the account. The errors I've caught include my own where I paid one amount to the wrong service provider when I paid on line and I still owed money to the right one while I had a huge credit balance on the other.

    DH uses a debit card which he faithfully tracks with every transaction in his checkbook. And he found a fraudulent charge for $4.95....not a lot but it was enough that somehow someone was probably raking in millions based on how many people aren't reconciling their charges and thus aren't reporting such a small amount. The bank took care of the charge and reissued a new debit card to DH.

  • tinam61
    10 years ago

    Another on-line banker here who no longer balances a checkbook. I do track transactions online. Both for checking/debit (we write very, very few checks) and credit cards.

    tina

  • morz8 - Washington Coast
    10 years ago

    msrose, it's your money, you need to take more of an interest in it. Banks do make mistakes, as do we.

    I think you tagged your own problem, you said you only tackle it about every three months. Create online access and do it every week, do it every two weeks but no longer than that and you'll be done in a heartbeat, any discrepancy quickly identified.

    I have 4 checking accounts, two seldom used, one business and I use QuickBooks for that. The 4th, the household, is the one I can be a little casual about recording ATM withdrawals, direct deposits, and DH will write checks and never enter them at all. I 'balance' it with my bank online, check against my own entries in my paper register, about 3 times a month. Three times 4-5 minutes = 15 maximum, not a big deal.

    You're making it complicated by avoiding it, just like laundry, going to the dentist, all else we put off because it's not fun. But its your money, pay attention.

  • msrose
    Original Author
    10 years ago

    I know you're right and it wouldn't be so bad if I didn't put it off. Every time I get it caught up, I say I'm going to stay on top of it, but I never do.

    morz8 - I do currently have an online account with my bank, but I'm still not understanding how that makes it easier. Are you just looking at the charges they show to make sure everything matches up or do you actually sit down with your register and makes sure it balances?

  • morz8 - Washington Coast
    10 years ago

    I sit down at my computer with my transactions page for that account open, and compare it to my paper checkbook register. (you can check off cleared checks in your register with a translucent highlighting pen if you have many transactions, make all easy to spot) I fill in any withdrawals for cash I may have made but have not entered in the register and add any deposits I may not have recorded.

    My bank shows actual check number with the amounts, I don't know if all do. If I have check numbers missing from my checkbook that don't show online either, I may have to wait a day or two more before they show online as having cleared (DH will take checks and forget to tell me, just assumes I have enough :)). Other than those, the balance online and the balance in my book should match.

    I hope I didn't sound harsh earlier, I just listened to a friend rant about having to spend a whole day straightening out his wife's checkbook this weekend - she's 50 with a college degree and my sympathies for the week may have been used up. I know it doesn't come naturally to everyone and takes a little discipline, which then turns into such a time saver.

  • kswl2
    10 years ago

    I used to use Microsoft money, which was a much better program than any of the intuit programs, but they stopped supporting it about five years ago. Now I use quick books and an accountant :-)

  • maddielee
    10 years ago

    The OP wrote:

    "
    morz8 - I do currently have an online account with my bank, but I'm still not understanding how that makes it easier. Are you just looking at the charges they show to make sure everything matches up or do you actually sit down with your register and makes sure it balances? "

    I am not morz8, but I thought I would try to answer...until you are comfortable with your online banking you might want to check you register against your account page. But, if you would get into the habit of checking your transactions a couple times a week (maybe daily for awhile) you should quickly be able to see what is recorded. By doing it more often you should be able quickly catch if something was recorded incorrectly.

    My bank keeps track of my online payments that have not been delivered and delivery date. I always know my actual account balance.

    Quicken and the other programs are fine if you need to track the categories where your money goes but for usual household accounts it may not be necessary.

    ML

  • runninginplace
    10 years ago

    Another low tech aide that I use is a checkbook that creates its own copies-so while doing what everyone suggests, checking frequently, I can always physically go to the checkbook to compare if necessary. Haven't had to do that in awhile though.

    And while I'm here:

    "I just listened to a friend rant about having to spend a whole day straightening out his wife's checkbook this weekend "

    ?!?!?!? I'm speechless. Is her name Lucy Ricardo? I had no idea people still live like that. Wow.

    Ann

  • gwlolo
    10 years ago

    I also rely on online banking. I do chek the transactions once a month online. I also have alerts created above a certain $$ value so that if a charge is posted above the $$ I instantly get an email and I can keep tabs on any big "mistake" that could happen. I do tend to avoid using any debit card. We use a single credit card and I pay off the balance in full each month. For the past couple of years, I have mostly moved to paypal for any cash/ check transactions. It is too much of a bother for me to find the checkbook, write a check etc. On the receiving end, we always found it frustrating to deposit checks. Expecially checks for few dollars given for school activities etc. As we use so little cash, I don't really have the need to go to a bank or an ATM. The past few times, I have used the option with online banking on the tablet and iphone which allows you to do a deposit from home by taking a photo of the front and back of the check and uploading it. Worked beautifully!. Be sure to mark the check as deposited so that you don't try to deposit it again :) Love technology!

  • annie1971
    10 years ago

    I really don't "balance" our accounts -- it's more that I check the balances. It's easier to use the robot phone than to log on (one bank is always changing my password). If my register is the same as the bank balance, of course there's no need to check every transaction. If it's off, I go online or dig deeper with the robot. I've found several sizable mistakes (on my part) that would have gotten me into overdraft trouble had I not checked.
    One thing I think is worth mentioning, there is a popular scam that starts out by charging minor amounts to your debit/credit accounts. If it goes unnoticed and unchallenged, the scammers know someone's not paying attention then BAM! They hit your account for a big one. So it's worth checking and drawing attention to even insignificant discrepancies.

  • Elraes Miller
    10 years ago

    Annie, You're right. And they can go on even if you try to cancel. Which means cancelling old card and getting a new one. Be aware of anything over the net. Double check all. I use a credit card which is actually debit, it gives me the insurance of covering errors. Debit does not do this. Although this changes nothing if a company gets a hold of your card number and starts charging at will and you don't keep track.

  • Sheeisback_GW
    10 years ago

    Like you, we subtract each purchase in the register and compare when the statement comes. We like physical paper. We have found a few (small) bank mistakes. I also know a username and password is a must, but I'm just so sick of logins.

    I'd somehow get into the habit of doing it on a regular basis. Even if you're comparing online you're still going to have to take time and check it out, you know?

  • msrose
    Original Author
    10 years ago

    It took me awhile, but I think I finally get it. I was trying to figure out how checking online would help me balance my checkbook when I get my monthly paper statement, but I will no longer need the monthly paper statement if I check online. Duh! So, I went through two months of my paper statements last night and I'll do the 3rd one tonight, so I can start checking online. Thanks, everyone!