What is a Bank Balance?
The bank balance is what your business has in the bank at the moment—according to the bank.
How it Works
A business will have a running balance with the bank.
This starts off as an opening balance .
The opening balance shows how much money the business had in the bank at the beginning of the month.
During the month, the business will make deposits.
Deposits will increase the balance..
The business will also make withdrawals.
Withdrawals will reduce the balance.
The balance at month-end is known as closing balancing.
The closing balance shows how much money the business has in the bank at month-end.
© R.J. Hickman 2020