Booked balance versus available balance

Introduction to booked and available balances

In day-to-day treasury operations, understanding the difference between booked and available balances is essential for managing liquidity accurately. Although both figures relate to the amount of cash in a bank account, they are calculated at different points in the transaction process.

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The booked balance includes all posted transactions—both credits and debits—that have been processed by the bank but may still include pending items that have not yet cleared. The available balance, on the other hand, represents the actual funds a company can withdraw, transfer, or use immediately.

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The gap between these two balances is known as float, which reflects the timing difference between when transactions are recorded and when funds are fully settled. Recognizing and managing this difference is critical for maintaining real-time visibility over cash.

Understanding the booked balance

The booked balance (sometimes called the ledger balance) is the amount displayed in a bank account after all recorded transactions have been posted. It includes:

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• Incoming payments that have cleared and been credited.
  
  
• Outgoing payments that have been processed.
  
  
• Transactions still pending final settlement, such as checks or batch payments.
  

Because it reflects transactions that have been processed but not necessarily settled, the booked balance provides a record of the account’s position according to the bank’s ledger, not necessarily what can be spent.

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For accounting purposes, the booked balance is what appears in statements and reconciliation reports—it’s the official record of financial activity at a given point in time.

Understanding the available balance

The available balance shows the actual amount of cash that can be accessed immediately. It excludes funds that are still in transit or pending settlement. For example, if an outgoing payment has been approved but not yet processed, the available balance will already reflect that amount as unavailable.

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Likewise, incoming payments that have not cleared will not yet appear in the available balance, even if they have been recorded in the booked balance. As a result, the available balance provides a more accurate view of what can be used for payments, transfers, or investments in real time.

Why the difference matters

The difference between booked and available balances can have significant implications for liquidity management. If treasury teams rely solely on booked balances, they may overestimate how much cash is actually available to fund payments or investments. Conversely, if available balances are underestimated due to delays in updating data, teams may hold more liquidity than necessary, reducing efficiency.

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Understanding this difference also helps explain short-term discrepancies in cash forecasts and reconciliations. The timing of settlements, cut-off periods, and transaction posting rules all contribute to why balances fluctuate throughout the day.

Factors that affect balances

Several operational factors influence how booked and available balances diverge:

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• Settlement timing: Transactions may take hours or days to clear depending on the payment method or counterparties involved.
• Payment schemes: Real-time systems like RTGS update balances instantly, while batch-based systems only reflect changes after scheduled processing cycles.
• Bank processing hours: Payments initiated outside business hours may appear in the booked balance but not in the available balance until the next day.
• Hold periods: Deposits such as checks or card settlements may be recorded but held until funds are confirmed.

Monitoring these factors is essential for accurately managing liquidity across banks, entities, and currencies.

Balances in treasury and liquidity management

For treasurers, the distinction between booked and available balances plays a central role in cash positioning. Daily liquidity decisions—such as funding accounts, making investments, or approving large payments—depend on knowing how much cash is genuinely available at any given moment.

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Real-time balance reporting helps minimize the impact of float and data delays. By consolidating both booked and available balances across all accounts, treasury teams gain a complete view of liquidity and can act confidently based on the most current information.

How Atlar can help with balance visibility

Atlar provides real-time visibility of both booked and available balances across all connected banks, accessible through Atlar's Cash Management tab. The platform automatically updates balances as soon as transactions are posted or settled, ensuring teams always know how much cash is available to use.

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By consolidating data from multiple banks into a single dashboard, Atlar eliminates blind spots between ledger and actual cash positions, helping finance and treasury teams make faster, more accurate liquidity decisions.