Balancing your checkbook is a method of verifying that your records (your checkbook register) match the bank’s records, as shown on your monthly bank statement. This can be important for defending against financial fraud.
Is balancing a checkbook necessary?
Balancing Your Checkbook Is Essential
Plus, with the addition of digital banking services like automatic bill payments and mobile deposits, it’s critical to know when your money is in motion.
Why do people balance their checkbooks?
Balancing your checkbook will help you make sure you have enough money in your account to cover all of your withdrawals and payments. It’s a way to have peace of mind knowing that your check won’t bounce or your debit card won’t be declined next time you’re at the checkout line.
Is it important to balance your checkbook every month because?
If you don’t balance your checkbook monthly, you might not even find the error in 60 days. Even more likely is the possibility that you made a math error in your checkbook register, which you’re unlikely to find unless you balance your checkbook each month.
What is the danger of not balancing your bank account?
Banks have been known to make mistakes. However, if you are not balancing to your account, you may not realize that a deposit is missing or a withdrawal is unauthorized. There is a paper trail that the banks use, and you should be able to work with your bank to correct any errors—but only if you catch them.
What are two reasons to avoid bouncing a check?
2 Big Reasons to Avoid Writing Worthless or Bad Checks
- Reason #1: Civil Liability. If you have written a check on behalf of yourself or a corporation that has later bounced or been returned for insufficient funds, you may be subject to civil liability. …
- Reason #2: Criminal Liability. …
- What You Can Do.