How to Balance Outstanding Checks

How to Balance Outstanding Checks
Hi! This is Summer on behalf of expertvillage.com now in the last clip we went through our register and checked everything that had cleared meaning it had showed up on our actual bank statement. Now most likely every time you get your statement and you reconcile there’s going to at least one or two items that are in your register that haven’t yet shown up on your bank statement, for example in our register here we went over the items that have cleared and noted that there was one check that is still outstanding basically that just means that it has not cleared our checking account yet. This is usually going to be the case that there’s always going to be one or two things that haven’t cleared, we just choose a simple example here just to basically show you how it’s done. So what we’re going to do to actually make sure that the amount that we have in our register is correct, is take a blank sheet of paper, at the top here I just wrote the ending statement balance which we’ll write in, outstanding deposits again if your bank holds deposits you may have a deposit written in your checkbook register that has not posted to your account yet, outstand debits and or checks a debit is basically anything that has come out of the account whether it be an automatic payment, an ATM withdraw, a check that hasn’t cleared, anything coming out of the account is considered as debit and then once we take the ending statement balance, add in deposits that haven’t posted to your checkbook statement, an outstanding debits or checks that haven’t posted to your bank statement we should equal what you actually have in your register as a balance. In the next clip we’ll actually use the example that I have here, run through these numbers and make sure that our register balances to our bank statement.