A reconciliation resolves completed and uncleared transactions on an individual account during a specific month. A finalized reconciliation shows $0 as the difference between the ending statement balance and the book balance. The book balance represents the net amount in an account after all uncleared transactions have been subtracted from it. An uncleared transaction is one that does not appear on the specific month’s bank statement because it occurred before or after that specific month or statement period, such as an as-yet unpaid outgoing invoice or a very recent purchase.