Balancing your checkbook may seem like a tedious and useless task when you can just check your balance online. But, there happens to be a few good reasons to balance with your records every month.

It verifies that your register matches the bank’s records. Although your bank processes the majority of transactions correctly, it can make mistakes too. Typically, you only have 60 days to inform the bank of the error. Also, if you forget to post an ATM withdrawal, debit card purchase or other transaction you will be able to catch it and avoid overdraft and return check fees. Finally, if you realize there has been a mistake it is easier to look back since the last statement than try to weed through months of paperwork.

The first step to balancing your checkbook is to write down the account balance from your bank statement. Compare deposits and withdrawals on the statement to your checkbook and receipts. Add any deposits not on the statement. Determine if there are any outstanding transactions (checks, withdrawals or debit card purchases) and deduct them. This number is your adjusted final balance. Make sure this number is the same as what your records (checkbook register) show. If not, see where the mistake was made to determine which one should be corrected. Take necessary steps to correct any mistakes.