Expected balance
The expected balance is the amount that should remain according to the recorded funds and expenses. In CloseBook, the calculation includes the starting balance plus later Money In transactions, minus Money Out transactions.
Actual balance
The actual balance is the amount physically counted or otherwise confirmed at the time of reconciliation. It is an observed amount, not a calculated amount. Entering the expected balance without counting defeats the purpose of reconciliation.
Difference
| Difference | CloseBook status | Interpretation |
|---|---|---|
| $0.00 | Balanced | Actual and expected balances match. |
| Negative | Shortage | Actual cash is lower than expected. |
| Positive | Surplus | Actual cash is higher than expected. |
Example calculation
Worked example
Reconciliation
Why a difference can appear
- An expense was paid but not recorded.
- A transaction amount was entered incorrectly.
- Additional funding was received but not recorded.
- Cash was returned, transferred or exchanged without a matching entry.
- A bank or service fee affected the available amount.
- The cash count itself was incorrect.
How to investigate a difference
Recount the cash
Repeat the physical count before changing transactions.
Review recent entries
Check dates, amounts, direction and duplicate transactions.
Check funding changes
Confirm that every top-up or returned amount is recorded correctly.
Review documentation
Use invoices, receipts and alternative evidence to identify omitted expenses.
Document the remaining difference
If the difference remains, record a factual explanation without guessing.