Practical guide

What a clearing balance can—and cannot—tell you

Last materially reviewed 2026-09-30

Quick answerA nonzero clearing balance needs a dated explanation; it is not automatically a mistake or a reason to zero the account.
What to know

Follow the two sides

A clearing account can help connect recorded activity with later transfers, but its meaning depends on the configured workflow. Identify what increases it and what reduces it. Do not assume an account named “clearing” contains only one payment service, currency or reporting period. A useful review begins with an opening amount and a list of expected movements.

What to know

Use a roll-forward

The original worksheet below calculates opening balance plus increases minus decreases. It compares that result with a stated closing balance. Use consistently signed categories and one currency. For example, an opening 200 plus 900 recorded increases minus 850 decreases leaves 250. That number may include valid unsettled activity. Arithmetic agreement is not evidence that all entries are appropriate.

What to know

Investigate the age, not just the size

Split the balance into known pending transfers, supported reserves, timing differences and unresolved items in your own records. A small old amount may deserve more attention than a large recent transfer. Link My Books’ gateway guidance identifies missing sides of the workflow as one possible cause of a growing balance; it does not establish that cause for every account.

What to know

Assign the next question

For each unresolved item, note the identifier, period, amount, evidence needed and responsible reviewer. Keep personal and banking data out of this site. If you cannot explain the opening position, resolve that before treating the current month as a clean start. Changes to accounting balances should be reviewed by the person responsible for the books, not inferred from this calculator.

Continue when useful

Next: Held funds

A hold changes availability; a release is not automatically new revenue. Preserve the movement history.

Open Held funds →

Sources used for this page

These records support the facts and comparisons above. Merchant-controlled records are labelled so you can separate product claims from independent evidence.

  1. Shopify payment gateways — Merchant documentation · help.linkmybooks.com · Merchant-controlled · checked 2026-09-30
  2. Amazon reserve balances — Merchant documentation · help.linkmybooks.com · Merchant-controlled · checked 2026-09-30
LOCAL WORKSHEET / NO UPLOADS

Roll the balance forward.

Opening balance + increases − decreases. A valid closing balance may be nonzero; this does not determine accounting treatment.

One currency. Anonymous numbers only. Nothing is saved or sent.

Enter all values, including zero where appropriate.