The ledger balance is the balance in a bank account at the start of each business day, reflecting all transactions such as deposits, withdrawals, and transfers that were processed and posted the previous day.
Also known as the current balance, it does not include pending transactions that haven’t been completed yet.
The ledger balance is used by banks to determine account activity and ensure accurate record-keeping. While it shows an official record of funds available as of the start of the day, the available balance may differ due to recent transactions not yet posted.
Understanding your ledger balance helps in tracking your actual cleared funds.