Balancing your Digital Checkbook
With Digital Banking on the rise, the way of balancing a checkbook is changing. Online shopping is now more popular than ever, which changes the way people pay for things. Cash is no longer the primary form of payment, but instead people are using debit and credit cards, Paypal, Apple Pay, Venmo, Zelle, etc. Still, with everything moving toward digital, there is still value in “balancing a checkbook.”
Here are a few reasons why it’s important to balance your accounts:
- Helps to spot fraudulent activity sooner.
- Helps monitor spending.
- Identify any unexpected fees.
- Catch discrepancies.
- Verify automatic payments are correct.
In order to balance your account you will need a few things:
- Choose an app or software to manage your digital checkbook. Our Online Banking software has financial tools built into it, which provide the ability to track spending, create a budget, track trends, cash flow, net worth and debt. You also have the flexibility to link outside accounts which will give you a better overall picture.
- Set up your accounts. Be sure to enter all of your bank accounts, credit cards, loans and any other financial accounts you may have. This will allow for a more comprehensive view of your finances.
- Record all transactions. This includes automatic payments, deposits, withdrawals, checks, debit card and online purchases. Be sure to compare your receipts and make sure all of the transactions are legitimate.
- Track spending and categorize your expenses. By organizing expenses into categories such as utilities, groceries, entertainment and savings, you will get a better understanding of where you spend your money.
- Reconcile often. Compare digital records with your bank statements and make sure all the transactions were recorded and the amounts match up. Monitoring your account will help to detect fraudulent activity, as well.
While balancing a digital checkbook may seem intimidating at first, with the right tools and regular practice, it becomes a straightforward process. By maintaining accurate records, categorizing expenses and reconciling regularly, you can achieve better control over your finances. If you haven’t already done so, sign up for mobile banking today!
