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The reconciliation forms will also allow you to track any outstanding checks or deposits. This allows you figure them into your checking account balance and you won’t feel like you have more cash than you do. Tracking each transaction will help you to keep a close eye on your spending habits. People often find that if their bank accounts are not reconciled every month, they end-up overdrafting. This can lead them to paying high fees for overdraft fees, and even bad check costs.
Use a template form to reconcile accounts monthly. It will allow you detect any accounting errors at both yours or the banks earlier. This could also save you overdraft charges and embarrassment of having your 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. It should match the bank’s information by subtracting these transactions from the balance.
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