Career Article 142:
Financial Basics: Writing Checks and Balancing Your Checking Account

By Tamara Dowling, CPRW

Writing Checks

1. A check is a draft to authorize payment from your checking.
2. Use a pen rather than a pencil or felt tip marker.
3. Fill out the check completely. Start at the far left and draw a line across the remainder of the line.
4. Always record the check written in the register, include the date, check number and payee name.

Balancing Your Checkbook - Step by Step

1. When you receive your bank statement. Compare your check register with the statement. Check off each item on the statement as you find the check, ATM, or debit card entry in your register.
2. In your register, record any bank charges (ATM fees, returned check fees, service fees) that you may have not yet recorded.
3. In your register, record automatic electronic payments, such as gym fees or insurance payments.
4. In your register, add automatic deposits such as your direct deposit paychecks.
5. Record earned interest.

Note: For items in steps 2-5: If it is a deposit that amount will be added to your running balance. If it is a payment or withdrawel, subtract it from your running balance.

6. Look for items on your bank statement not "checked off." Those items are called "outstanding transactions." Total the amount of the outstanding transactions.
7. Subtract the outstanding transaction total from the ending balance on your bank statement. This is called your "new balance."
8. Add any deposits you have made but that are not listed on your bank statement to your "new balance." This number should match the balance in your check register.

If your account does not balance, try the following:

1. Re-check your register against your bank statement to be sure your checked off all posted transactions.
2. Check your addition and subtraction.
3. Check your deposit, withdrawal, and ATM receipts to be sure you logged them properly.
4. Check for transposed numbers.

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