Bank Balance
What is a Bank Balance?
The bank balance is what your business has in the bank at the moment—according to the bank.
![bb1](https://seeaccountingnow.online/wp-content/uploads/2020/04/bb1.jpg)
How it Works
A business will have a running balance with the bank.
![bb2](https://seeaccountingnow.online/wp-content/uploads/2021/06/bb2.jpg)
This starts off as an opening balance .
![](https://seeaccountingnow.online/wp-content/uploads/2020/04/bb3.jpg)
The opening balance shows how much money the business had in the bank at the beginning of the month.
![](https://seeaccountingnow.online/wp-content/uploads/2020/04/bb4.jpg)
During the month, the business will make deposits.
![](https://seeaccountingnow.online/wp-content/uploads/2020/04/bb5.jpg)
Deposits will increase the balance..
![](https://seeaccountingnow.online/wp-content/uploads/2020/04/bb6.jpg)
The business will also make withdrawals.
![](https://seeaccountingnow.online/wp-content/uploads/2020/04/bb7.jpg)
Withdrawals will reduce the balance.
![](https://seeaccountingnow.online/wp-content/uploads/2020/04/bb8.jpg)
The balance at month-end is known as closing balancing.
![](https://seeaccountingnow.online/wp-content/uploads/2020/04/bb9.jpg)
The closing balance shows how much money the business has in the bank at month-end.
![](https://seeaccountingnow.online/wp-content/uploads/2020/04/bb10.jpg)
© R.J. Hickman 2020