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This reconciliation form will also let you track any outstanding checks and deposits so that you can figure them into the balance in your checkbook and not end up thinking you have more money than you really do. You can track every transaction and keep a better eye on your spending habits. This can help you set up and maintain your budget. People find that if they don’t take time to reconcile their bank account every month, they end up overdrafting their accounts. This can cost them a lot in overdraft fees as well as bad check charges.
A template form is a great way to reconcile your accounts on a monthly basis. It will help you spot any accounting errors, both yours as well as the banks, much sooner. This could save you overdraft fees or the embarrassment that comes with having your check bounce or debit card declined. This allows you to list each transaction that you have logged in your checkbook and those that the banks have. Once you have matched all transactions, reconciliation occurs. Only those transactions that you do not show the bank will be left. You can subtract these from your balance and it will match what the bank shows.
Many sites offer templates that you can download to make bank reconciliations much more simple. The process is very simple, so it is important to choose a template that does not add complexity. You should make sure to reconcile your accounts every month. This will allow you to spot problems before they become costly.