how a ledger balance works
the ledger balance is updated at the end of the business day after all transactions are approved and processed banks calculate this balance after posting all transactions such as deposits interest income wire transfers that go both in or out cleared checks cleared credit card or debit transactions and any correction of errors it represents the existing balance on an account at the onset of the next business day processing delays related to pending deposits can occur because the bank must first receive funds from the financial institution of the person or business who issued the check wire transfer or another form of payment once the money has been transferred the money is made accessible to the account holder the bank statement only provides the ledger balance to a particular date deposits made and checks written on or after this date do not appear on the statement the ledger balance may be used to determine whether the requirement to maintain a specific minimum balance is being satisfied it is also included in bank account receipts the ledger balance differs from the available balance of the bank account in banking and accounting the ledger balance is used in the reconciliation of book balances 