Reconciliation
Financial institutes typically send bank statements monthly. They can be balanced with pencil and paper or on the computer if you have a financial software package.
Step A
Begin with your beginning balance. This could be the ending balance from the last statement or the amount you opened the account with.
Step B
Using your check register you will determine all items that have cleared (been processed by the bank). After these items are reconciled you will have a list of checks that have not been paid by the bank. TOTAL your checks written but not paid by the bank. You will also list in your check register any fees accessed by the bank and items your forgot to record.
Step C
To your ending balance (step A) you will add any deposits that the bank is not showing (if any). Subtract checks not paid (step B) and the balance should be the balance in your check book.
This step by step should be printed on the back side of your bank statement.