I've been told by more than one person that it is difficult to balance a checking account. As such, I must accept the fact that more than one person has been intimidated by the task. In urging people to take control of their finances balancing that is a necessary step.
Simply put, balancing your account is a way of knowing what is exactly taking place with your account. For those of you using the ledger in your check book to track transactions, you'll need to compare your record with the listing on your monthly statement. Hopefully you have already been making notations for all the transactions you have done, checks, point-of-sale purchases and deposits. By comparing your records with those on your statement you validate your records and ensure accuracy. If you find a missing transaction it is just an addition or subtraction problem. When you have accounted for all the withdrawals and all the deposits your account records will match those on the statement. Now you know what is available to you.
An even better method is to track your finances on a personal computer using Microsoft money, Quicken or Quickbooks. I mention these programs because they are readily available on most computers, and are fully compatible with online banking systems. Tracking with a computer is convenient simply because it does the math for you (which is often where mistakes come from). When reviewing your banking online you can verify transactions at anytime to keep the account up to date. Some banks even provide for a way to go paperless at a discount.
Either way, you are now monitoring your account activities and developing a good habit of knowing what your money is doing for you. Knowing that is going to make you conscious of where your money is going. Your money tool now has direction and you are on the right track to controlling your finances.
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