Reasons to Balance Your Bank Account Every Month

You may wonder if anyone balances their bank account manually anymore given how many aspects of personal finances have become electronic. However, tracking withdrawals and deposits and tallying up amounts can have value.

Monitoring your checking account in this way can help you identify errors or fraud. It can reveal charges and fees you may not have known you were being assessed. It can also put you in better touch with your money and your spending. All those things are definitely positives.

This guide will help you learn the step-by-steps for balancing your checkbook as well as its benefits.

How to Balance a Checking Account Step-by-Step

Here’s how to balance your checking account. It can take a little time and effort but rewards you with control over your finances.

Step 1: Gather Your Bank Statement and Transaction Records

Start by gathering the receipts and records for spending and deposits for the period chosen. If you use a check register, grab that. If you write your purchases down in a notebook or use software or a spreadsheet, use those. If you collect ATM receipts, pull that pile together, too.

Step 2: Compare Deposits and Add Any Interest Earned

Next, you’re going to match those records with the bank statement. Many people review these online or in their bank’s app; some people may still get hard copies sent by snail mail.

In this step, you’re specifically looking for deposits. Make sure you have accounted for every transaction. If you missed something the bank has listed and you’re sure it’s accurate (for example, or a birthday check you deposited and forgot about), add it to your records. Factor in any interest you may have earned on the amount of money in your account.

Step 3: Check Off All Cleared Withdrawals, Payments, and Debits

Go ahead and make sure you have included all debits. This can mean any withdrawals from the ATM, autopayments, debit card transactions, and other transactions deducted from your account. This will help you get to the true bottom line of your account.

Step 4: Subtract Any Bank Fees or Service Charges

Don’t forget to account for any bank fees and service charges. Perhaps you keep your accounts at a fee-free bank, or maybe you pay a maintenance fee and overdraft charges from time to time. Check your statement and account for any such fees.

Every little bit counts: If you use fee-free ATMs, great, but if you paid a few dollars as a fee, don’t forget to account for that as you do the math.

Step 5: List and Total All Your Outstanding Transactions

Take note of any transactions that are pending. Did you deposit a check by mobile deposit last night that hasn’t fully cleared yet? Do you have an autopay that’s currently processing? Consider what might be about to hit your account and add or subtract it.

Reconcile Your Records With the Bank’s Balance

Now for your account reconciliation: The amount you come up with should match with the balance you have in your register/notes/spreadsheet and jibe with what you are seeing online or in app, once pending transactions are accounted for. If it doesn’t, you may have to do a closer check to see what you might have missed or if your math is a little off.

If you’re confident that the bank made a mistake or you notice anything else askew, contact the bank by phone, email, messaging, or in-person right away to let them know about the inconsistency.

Modern Tools to Help You Balance Your Account

If the thought of doing this reckoning and the math has you in a cold sweat, relax. There are tools to help you balance your checking account with less stress.

Using Your Bank’s Mobile App and Website

Your bank’s app and/or website can typically play a major role in balancing your account. By checking these options, you can see your real-time balance, transaction history, and digital statements. You can also likely glean spending insights that help you match your records to the bank’s, not to mention budget better.

You can also uncover errors this way. You use these tools to see what your bank knows and then compare that to your records to find discrepancies.

Using a Personal Budgeting Spreadsheet

Another system that can help you balance your account is a budgeting spreadsheet. There are many variations of these templates available online. It can be a smart move to start with one that is free to download. Digital spreadsheets vs. physical ones can offer the benefit of automatically doing the math for you as you enter your starting balance, credits, debits, and other bits of data.

If you’re the kind of person who enjoys working on a hard copy, you can print out these spreadsheets or buy paper ones at a local office supply retailer or perhaps a big box store.

Why Is Balancing Your Checking Account Still Important?

Balancing your checking account is still important because it helps you manage your money better, even in this era of online banking.

It Helps You Catch Bank Errors and Overcharges

Even if you are a fastidious record keeper, logging every cash withdrawal, bill payment, and deposit into a paper ledger, spreadsheet, or app, we all make mistakes from time to time.

Maybe an ATM receipt went missing or a bill payment was forgotten or recorded incorrectly. Or perhaps you were double-charged by a merchant. By reconciling an account regularly, these little mistakes can be quickly fixed. Banks also can make errors in rare instances. Balancing your checking account can allow you to bring a possible mistake to the attention of customer service.

It Helps You Spot Fraudulent Activity Sooner

Every time a person makes an ATM withdrawal, pays for gas with a debit card, or places an order online, there’s a slight chance that a scammer will intervene.

Consumers who check their accounts regularly may have a better chance of spotting fraud faster, limiting their own liability and helping the bank deal with potential problems.

It Gives You Control Over Automatic Payments and Subscriptions

Automatic bill payments are convenient and can help an account holder avoid late payments (and late fees).

But the downside is that those bills might not get the same attention as those paid every month by check, phone, or online. Ready or not, the money comes out of the bank account as scheduled, and if the account is low on the payment date, it can lead to bounced checks and overdraft fees.

Account holders who check their statements regularly may find they’re more aware of and prepared for the amount and timing of their autopay charges. They also might find they’re ready to dump or reduce the cost of some of the services and subscriptions they’ve been paying for from their checking account every month or year.

It Provides a Clear Picture of Your Spending Habits

Balancing your checking account can benefit those who need or want to take more control of their spending to see exactly where their money is going every day, week, or month.

Regularly scheduled reconciliations enable people to see exactly how much they’re spending every week on nonessentials, such as in-app purchases or happy hours. This kind of information can help people budget more effectively and help bring them closer to their savings goals, such as a downpayment on a home.

Recommended: ATM Withdrawal Limits — What You Need To Know

The Takeaway

Balancing a bank account every month can serve as an important backup and safeguard, especially for those who have multiple accounts, or who have turned over certain financial tasks (say, bill paying and budgeting) to automation and apps. It can also help you avoid unnecessary fees, spot mistakes or fraud, and enable better budgeting and money management.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

FAQ

How often should I balance my checking account?

How often you should balance your checking account can vary. Financial experts recommend a minimum of once a month, with some saying weekly is a good cadence. If you conduct a lot of transactions, an even more frequent rhythm can be best.

What should I do if my checking account doesn’t balance?

If your checking account doesn’t balance, it’s wise to dig in and reconcile the account, looking for missing and pending transactions, fees you forgot about, and math errors. If you can’t find an error or if you see any unauthorized or incorrect activity, contact your bank immediately.

Do I need to balance my account if I use a banking app?

It’s a good idea to balance your account even if you use a banking app. The reason: Apps can’t necessarily catch instances of fraud or mistakes the way you can, and they may not show pending transactions (like an upcoming autopay) in a way that allows you to manage your money optimally.

What is the difference between my current balance and my available balance?

Here’s the difference between these two amounts: Your current balance reflects money in your account for all transactions that have cleared or are in the works. Your available balance, however, shows what you can spend right now. It doesn’t include transactions that are still pending or processing, nor does it reflect any funds that have a hold on them.

What is a check register and is it still used?

A check register is a ledger (often in booklet form) that is filled out to track bank account activity, such as deposits, checks written, and ATM withdrawals. This serves as a tracker for account activity and current balance. Some people still use them; others prefer online tools to keep tabs on their money.

SoFi Checking and Savings is offered through SoFi Bank, N.A. Member FDIC. The SoFi® Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 12/23/25. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network every 31 calendar days.

Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.

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