Book Balance
Definition
The book balance is the balance shown in the business's accounting records for a bank or credit card account. It may differ from the statement balance because of items that have not yet cleared.
Example
The book balance for checking is $10,200. The bank statement shows $10,000. The difference is explained by an outstanding check and a missing bank fee.
Why It Matters
The book balance is what the books say the account is worth. Reconciliation confirms whether that number is trustworthy.