What is the purpose of reviewing each deposit and withdrawal?

Reviewing each deposit and withdrawal primarily serves to ensure accuracy in your financial records. This is critical because accuracy helps you keep track of your actual balance, guards against errors, and protects against fraudulent transactions. By systematically checking each entry, you can quickly identify any discrepancies, such as unauthorized withdrawals or deposits that haven’t cleared. Maintaining accurate records is essential for effective budget management, financial planning, and achieving your financial goals.

While analyzing spending habits and calculating future fees can be important for overall financial health, the immediate and foundational reason for reviewing transactions is to confirm that the figures you see match the true activities in your accounts.