At the end of every month your bank will either mail you a copy of your statement or make a copy of it available online. This statement will show each deposit you have made along with all of the checks that have cleared and any debit card purchases and ATM withdrawals. Once you have this you will need to take the time to reconcile your checkbook and the bank statement to make sure that both figures match. The best way to do this is by using a bank reconciliation template that will help you to compare the two sets of figures.

This reconciliation form will also let you track any outstanding checks and deposits so that you can figure them into the balance in your checkbook and not end up thinking you have more money than you really 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. Most people find that if they do not take the time to reconcile their bank accounts every month they end up overdrafting their accounts, which can end up costing a lot of money in overdraft fees and bad check charges.

Another important aspect of using a template form to reconcile your account on a monthly basis is that it will allow you to spot any type of accounting error, both yours and the banks at a much earlier point in time and again could end up saving you overdraft fees and the embarrassment of having a check bounce or your debit card declined. This form allows you to list every transaction you have recorded in your checkbook alongside of the ones that the bank has a record of. Reconciliation occurs once you have matched all transactions and are left only with those that you show that the bank does not. By subtracting these from the balance you show, it should match what the bank shows.

If you are looking for a bank reconciliation template to make this task a lot easier every month you will find that there are several sites online that provide templates for you to download. Since this is a relatively simple process, you need to make sure that the template you choose does not overcomplicate the process. Most importantly you need to make sure you reconcile your account every month so that you can spot any problems that occur in their tracks before they end up costing you a lot of money.