Page 37 - Book4E

CHAPTER 7
Balancing Your Accounts
Once you have decided on the best financial institution for you, it is important to keep accurate and up-to-date financial records. While the institution you choose will keep its own records of your account, it is your responsibility to maintain a personal record. If there is ever a discrepancy with your account, it will be up to you to show a record of why you believe there is an error to correct.
Any time you receive a statement from a financial institution or credi- tor, it is important to take the time to balance or reconcile the state- ment with your own records. This is the only way to know whether or not your records are accurate and the records of your account holders are accurate. Money can be lost if you are not diligent in making sure all the records are accurate. It is rare for a bank or other finan- cial account holder to make an error because of the sophistication of accounting software used, but it does happen sometimes, and no one will know if you aren’t keeping watch.
Balancing creditor statements
Each time you receive a statement from a creditor, check it against your own records. This is particularly important with credit card statements. You will soon see why you need to keep all your receipts from credit card expenditures. Check each of your receipts against the charges that are on your credit card statement. The statement will show you the date of the transaction, the merchant, and the amount you spent.
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