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You can also track outstanding checks and deposits on the reconciliation form so you can add them to your balance in your bank account. This will help you not think you have more than you actually do. By tracking every transaction in this way you can keep a much closer eye on your spending habits, which in turn can make it easier for you to set up and maintain a budget for your household. Many people discover that they don’t take the time to reconcile bank accounts each month. This can lead to overdrafting of their accounts which can result in high overdraft fees or bad check charges.
The other benefit of using a template for reconciling your account on a monthly schedule is that it allows you to identify any accounting error at an earlier stage. This could result in you saving overdraft fees, embarrassment and having your debit card declined or a check bounce. This form allows for you to list every transaction that you have recorded in the checkbook, along with the ones that are held by the bank. 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. Since this is a relatively simple process, you need to make sure that the template you choose does not overcomplicate the process. You should make sure to reconcile your accounts every month. This will allow you to spot problems before they become costly.