Step 1: Obtain the current balance from your bank statement.

Step 2: Add any deposits that you have recorded in your cheque register but that are not on this statement.

Step 3: Subtract any outstanding cheques (cheques you have written but that have not yet cleared the banking system). You should also subtract any transactions you conduct at point of sale using your debit card, and any pre-authorized payments.

Step 4: Compare the result with the current balance in your cheque register.

Note: The balance in your cheque register should be adjusted to include: (a) deductions for service fees or other charges; (b) additions for direct deposits and interest earned.