What is subtracted from your ending balance to reconcile your account accurately?

To reconcile your account accurately, it is essential to account for all amounts that have been written but not yet processed by the bank, which includes outstanding checks. When you write a check, the amount is deducted from your balance in your accounting records immediately, but the bank may not process it until a later date. Therefore, to reflect the true available balance, you subtract any outstanding checks from your ending balance. This ensures that the balance accurately reflects only the transactions that have cleared the bank and does not overstate the available funds.

Monthly fees should already be accounted for in your ending balance, as they are already deducted from your account by the bank. Deposited amounts would increase your balance, not be subtracted during reconciliation. Pending transactions are those that have been initiated but may not yet be cleared, similar to outstanding checks, but they typically include deposits rather than payments made. Hence, outstanding checks are specifically what you need to subtract to reconcile your account properly.