What is ledger balance?

A ledger balance represents the actual amount of money a bank or financial institution holds in an account. It reflects all posted transactions, meaning transactions that have been fully processed and recorded on the bank's systems. This is different from the available balance, which may include pending transactions like checks that have been deposited but haven't cleared yet or authorized debit card purchases that haven't been finalized.

The ledger balance offers a more accurate view of the funds definitively controlled by the account holder. It's crucial for reconciling bank statements and assessing overall financial position. Because it only reflects finalized transactions, it eliminates any uncertainty associated with transactions that are still being processed.