The "opening balance" refers to the amount of money or assets that a business or individual has at the beginning of a specific period, such as the start of a fiscal year or the commencement of a bank account. It represents the cumulative balance from the previous period or the initial investment made. It serves as a starting point for financial transactions and calculations in subsequent periods. The opening balance can include funds in cash, bank accounts, investments, inventory, accounts receivable, or any other assets held by the entity.
The term "opening balance" refers to the amount of money or value present in a financial account or statement at the beginning of a specific period, such as the start of a fiscal year, a new accounting period, or the launch of a new business. It represents the previous period's closing balance, which is carried forward as the starting point for the current period. The opening balance serves as a reference point for tracking changes, transactions, revenues, and expenses during the specified period. Different types of accounts, such as bank accounts, credit cards, and inventory, may have their own opening balances.
