Accept payments

Online payments

Accept and manage online payments

In-person payments

Take payments with terminals and devices

Checkout

Offer a checkout optimised for conversion

Recurring payments

Collect recurring and subscription payments

Acceptance & Risk

Prevent fraud and optimise conversion

Embedded payments

Connect for platforms

Embed payments on your platform

Collect revenue

Payment links

Create, send and customise payment links

Invoicing

Crea

Grow your business

Capital

Get fast funding with flexible repayments

Partners

For Agencies

Learn about our Agency Partner Program

For SaaS and Ecommerce

Explore our SaaS and Ecommerce Partner Program

Technical resources

Developers portal

Discover developer resources and updates

Libraries

Integrate Mollie with ready-to-go libraries

Discord community

Join our developer community

Mollie API

Docs

Explore our API documentation and guides

Status

Check our current system status

Changelog

Read up on recent technical changes

About Mollie

Pricing

View our pricing

About us

Learn more about our story and values

News

Read the latest Mollie news

Careers

Come work for us - we're hiring!

Mollie content

Articles & guides

Discover content that can help your business

Success stories

See how we support our customers

Papers

Download our papers

Contact

For shoppers

Find out why Mollie is on your bank statement

For Mollie customers

Reach out to our customer support team

Contact sales

Discover how we can help your business

Growth

What is an opening balance? Your complete guide

What is an opening balance? Your complete guide

What is an opening balance? Your complete guide

What is an opening balance? Your complete guide

Discover what is an opening balance, how to calculate it and the different types of opening balances.

Discover what is an opening balance, how to calculate it and the different types of opening balances.

Finance-and-accounting

9 Sept 2022

Nick Knuppe

Head of Product Marketing

If you’ve just started a new business, or it’s your first time managing the accounts, you’re probably discovering a lot of unfamiliar terms. That’s why we’re here to keep things simple for you. 

Today, we’re taking a deep dive into the term ‘opening balance’ – including what it is, how to calculate it, and what it means for your business. 

If you’ve just started a new business, or it’s your first time managing the accounts, you’re probably discovering a lot of unfamiliar terms. That’s why we’re here to keep things simple for you. 

Today, we’re taking a deep dive into the term ‘opening balance’ – including what it is, how to calculate it, and what it means for your business. 

If you’ve just started a new business, or it’s your first time managing the accounts, you’re probably discovering a lot of unfamiliar terms. That’s why we’re here to keep things simple for you. 

Today, we’re taking a deep dive into the term ‘opening balance’ – including what it is, how to calculate it, and what it means for your business. 

If you’ve just started a new business, or it’s your first time managing the accounts, you’re probably discovering a lot of unfamiliar terms. That’s why we’re here to keep things simple for you. 

Today, we’re taking a deep dive into the term ‘opening balance’ – including what it is, how to calculate it, and what it means for your business. 

What is an opening balance?

An opening balance is the amount of money a business has available at the start of a specific accounting period. This period could be a day, a week, a month, a quarter or a year, depending on how the business manages its finances. The balance can be a positive or negative figure, and can be a useful way of tracking a company’s performance across different periods. It’s also an important figure to have on hand for investors.   

What your opening balance is, and what it means for your business, will vary depending on whether you’re starting a new company or managing the accounts of an existing one. Here’s a little more about what that means. 

An opening balance is the amount of money a business has available at the start of a specific accounting period. This period could be a day, a week, a month, a quarter or a year, depending on how the business manages its finances. The balance can be a positive or negative figure, and can be a useful way of tracking a company’s performance across different periods. It’s also an important figure to have on hand for investors.   

What your opening balance is, and what it means for your business, will vary depending on whether you’re starting a new company or managing the accounts of an existing one. Here’s a little more about what that means. 

An opening balance is the amount of money a business has available at the start of a specific accounting period. This period could be a day, a week, a month, a quarter or a year, depending on how the business manages its finances. The balance can be a positive or negative figure, and can be a useful way of tracking a company’s performance across different periods. It’s also an important figure to have on hand for investors.   

What your opening balance is, and what it means for your business, will vary depending on whether you’re starting a new company or managing the accounts of an existing one. Here’s a little more about what that means. 

An opening balance is the amount of money a business has available at the start of a specific accounting period. This period could be a day, a week, a month, a quarter or a year, depending on how the business manages its finances. The balance can be a positive or negative figure, and can be a useful way of tracking a company’s performance across different periods. It’s also an important figure to have on hand for investors.   

What your opening balance is, and what it means for your business, will vary depending on whether you’re starting a new company or managing the accounts of an existing one. Here’s a little more about what that means. 

Different types of opening balances

When you start a new business, the opening balance for your account is usually zero – unless you spent money setting the business up. Any investments or loans will be entered as transactions during your designated financial period, so you don’t need to include them here. 

If you’ve been running a business for more than one accounting period, then your opening balance is the amount of money left at the end of your previous accounting period, which is known as your closing balance. This balance (whether it’s positive or negative) is brought forward to become your business’ opening balance. 

When you start a new business, the opening balance for your account is usually zero – unless you spent money setting the business up. Any investments or loans will be entered as transactions during your designated financial period, so you don’t need to include them here. 

If you’ve been running a business for more than one accounting period, then your opening balance is the amount of money left at the end of your previous accounting period, which is known as your closing balance. This balance (whether it’s positive or negative) is brought forward to become your business’ opening balance. 

When you start a new business, the opening balance for your account is usually zero – unless you spent money setting the business up. Any investments or loans will be entered as transactions during your designated financial period, so you don’t need to include them here. 

If you’ve been running a business for more than one accounting period, then your opening balance is the amount of money left at the end of your previous accounting period, which is known as your closing balance. This balance (whether it’s positive or negative) is brought forward to become your business’ opening balance. 

When you start a new business, the opening balance for your account is usually zero – unless you spent money setting the business up. Any investments or loans will be entered as transactions during your designated financial period, so you don’t need to include them here. 

If you’ve been running a business for more than one accounting period, then your opening balance is the amount of money left at the end of your previous accounting period, which is known as your closing balance. This balance (whether it’s positive or negative) is brought forward to become your business’ opening balance. 

How to calculate your opening balance

Once you’ve been running a business for more than one accounting period, you’ll need to start calculating your company’s opening balance. If you’re using any accounting software, these figures will be automatically calculated for you. But if you’re managing your accounts manually, you’ll need to work out the opening balance yourself. Fortunately, this is pretty straightforward – all you need is the figure from your closing balance. 

Here’s how that works in practice. 

Let’s say you’re running a new business that’s coming to the end of its first accounting period, and you need to calculate its first closing balance. You can do this with a simple closing balance formula: opening balance + earnings – outgoings = closing balance. So, if it’s your first accounting period in the business, your opening balance would have been zero. Let’s then say you earn €10,000 and spend €3,000 during that first accounting period. Your closing balance would be €0 + €10,000 – €3,000 = €7,000. 

That €7,000 closing balance would be carried forward to become the opening balance for your next accounting period. This means that the only opening balance formula you need is: closing balance = opening balance. 

Once you’ve been running a business for more than one accounting period, you’ll need to start calculating your company’s opening balance. If you’re using any accounting software, these figures will be automatically calculated for you. But if you’re managing your accounts manually, you’ll need to work out the opening balance yourself. Fortunately, this is pretty straightforward – all you need is the figure from your closing balance. 

Here’s how that works in practice. 

Let’s say you’re running a new business that’s coming to the end of its first accounting period, and you need to calculate its first closing balance. You can do this with a simple closing balance formula: opening balance + earnings – outgoings = closing balance. So, if it’s your first accounting period in the business, your opening balance would have been zero. Let’s then say you earn €10,000 and spend €3,000 during that first accounting period. Your closing balance would be €0 + €10,000 – €3,000 = €7,000. 

That €7,000 closing balance would be carried forward to become the opening balance for your next accounting period. This means that the only opening balance formula you need is: closing balance = opening balance. 

Once you’ve been running a business for more than one accounting period, you’ll need to start calculating your company’s opening balance. If you’re using any accounting software, these figures will be automatically calculated for you. But if you’re managing your accounts manually, you’ll need to work out the opening balance yourself. Fortunately, this is pretty straightforward – all you need is the figure from your closing balance. 

Here’s how that works in practice. 

Let’s say you’re running a new business that’s coming to the end of its first accounting period, and you need to calculate its first closing balance. You can do this with a simple closing balance formula: opening balance + earnings – outgoings = closing balance. So, if it’s your first accounting period in the business, your opening balance would have been zero. Let’s then say you earn €10,000 and spend €3,000 during that first accounting period. Your closing balance would be €0 + €10,000 – €3,000 = €7,000. 

That €7,000 closing balance would be carried forward to become the opening balance for your next accounting period. This means that the only opening balance formula you need is: closing balance = opening balance. 

Once you’ve been running a business for more than one accounting period, you’ll need to start calculating your company’s opening balance. If you’re using any accounting software, these figures will be automatically calculated for you. But if you’re managing your accounts manually, you’ll need to work out the opening balance yourself. Fortunately, this is pretty straightforward – all you need is the figure from your closing balance. 

Here’s how that works in practice. 

Let’s say you’re running a new business that’s coming to the end of its first accounting period, and you need to calculate its first closing balance. You can do this with a simple closing balance formula: opening balance + earnings – outgoings = closing balance. So, if it’s your first accounting period in the business, your opening balance would have been zero. Let’s then say you earn €10,000 and spend €3,000 during that first accounting period. Your closing balance would be €0 + €10,000 – €3,000 = €7,000. 

That €7,000 closing balance would be carried forward to become the opening balance for your next accounting period. This means that the only opening balance formula you need is: closing balance = opening balance. 

B/D vs C/D

If you’re using accounting software or working directly with an accountant, you might see the abbreviations B/D (brought down) or B/F (brought forward) alongside your opening balance. These refer to the fact that your opening balance is a figure brought forward from the previous accounting period. 

Similarly, the abbreviations C/D (carried down) and C/F (carried forward) may appear alongside your closing balance, referring to the fact that the figure will be carried forward to the next accounting period. 

If you’re using accounting software or working directly with an accountant, you might see the abbreviations B/D (brought down) or B/F (brought forward) alongside your opening balance. These refer to the fact that your opening balance is a figure brought forward from the previous accounting period. 

Similarly, the abbreviations C/D (carried down) and C/F (carried forward) may appear alongside your closing balance, referring to the fact that the figure will be carried forward to the next accounting period. 

If you’re using accounting software or working directly with an accountant, you might see the abbreviations B/D (brought down) or B/F (brought forward) alongside your opening balance. These refer to the fact that your opening balance is a figure brought forward from the previous accounting period. 

Similarly, the abbreviations C/D (carried down) and C/F (carried forward) may appear alongside your closing balance, referring to the fact that the figure will be carried forward to the next accounting period. 

If you’re using accounting software or working directly with an accountant, you might see the abbreviations B/D (brought down) or B/F (brought forward) alongside your opening balance. These refer to the fact that your opening balance is a figure brought forward from the previous accounting period. 

Similarly, the abbreviations C/D (carried down) and C/F (carried forward) may appear alongside your closing balance, referring to the fact that the figure will be carried forward to the next accounting period. 

Why are opening balances important?

There are a couple of key reasons why opening balances are a crucial figure for businesses – whether they’re a new startup or an existing enterprise.

The first is that calculating your opening balance is a simple, effective way of analysing your company’s performance, tracking trends, and spotting any problems with earnings or spending. For example, if you’re starting a new period with a negative opening balance, you might need to reduce your spending for the next period. 

The other reason opening balances are so important is that they provide clear answers about your company’s performance to investors, stakeholders and tax authorities. 

But for an opening balance figure to be accurate, every transaction (whether that’s earnings or outgoings) has to be accurately recorded, either in your accounting software or your cash book. Luckily, Mollie makes staying on top of your transactional data easy. 

There are a couple of key reasons why opening balances are a crucial figure for businesses – whether they’re a new startup or an existing enterprise.

The first is that calculating your opening balance is a simple, effective way of analysing your company’s performance, tracking trends, and spotting any problems with earnings or spending. For example, if you’re starting a new period with a negative opening balance, you might need to reduce your spending for the next period. 

The other reason opening balances are so important is that they provide clear answers about your company’s performance to investors, stakeholders and tax authorities. 

But for an opening balance figure to be accurate, every transaction (whether that’s earnings or outgoings) has to be accurately recorded, either in your accounting software or your cash book. Luckily, Mollie makes staying on top of your transactional data easy. 

There are a couple of key reasons why opening balances are a crucial figure for businesses – whether they’re a new startup or an existing enterprise.

The first is that calculating your opening balance is a simple, effective way of analysing your company’s performance, tracking trends, and spotting any problems with earnings or spending. For example, if you’re starting a new period with a negative opening balance, you might need to reduce your spending for the next period. 

The other reason opening balances are so important is that they provide clear answers about your company’s performance to investors, stakeholders and tax authorities. 

But for an opening balance figure to be accurate, every transaction (whether that’s earnings or outgoings) has to be accurately recorded, either in your accounting software or your cash book. Luckily, Mollie makes staying on top of your transactional data easy. 

There are a couple of key reasons why opening balances are a crucial figure for businesses – whether they’re a new startup or an existing enterprise.

The first is that calculating your opening balance is a simple, effective way of analysing your company’s performance, tracking trends, and spotting any problems with earnings or spending. For example, if you’re starting a new period with a negative opening balance, you might need to reduce your spending for the next period. 

The other reason opening balances are so important is that they provide clear answers about your company’s performance to investors, stakeholders and tax authorities. 

But for an opening balance figure to be accurate, every transaction (whether that’s earnings or outgoings) has to be accurately recorded, either in your accounting software or your cash book. Luckily, Mollie makes staying on top of your transactional data easy. 

Real-time payments with Mollie

With Mollie as your payment service provider, you get real-time access to your company’s invoices and payouts, along with a detailed overview of your current balance. Plus, you can export all that data to your accounting software in just a couple of clicks. So, when it comes to things like calculating opening balances, you’ve got everything you need at your fingertips. Looking to grow your business? Find out more about what payments with Mollie can do. 

With Mollie as your payment service provider, you get real-time access to your company’s invoices and payouts, along with a detailed overview of your current balance. Plus, you can export all that data to your accounting software in just a couple of clicks. So, when it comes to things like calculating opening balances, you’ve got everything you need at your fingertips. Looking to grow your business? Find out more about what payments with Mollie can do. 

With Mollie as your payment service provider, you get real-time access to your company’s invoices and payouts, along with a detailed overview of your current balance. Plus, you can export all that data to your accounting software in just a couple of clicks. So, when it comes to things like calculating opening balances, you’ve got everything you need at your fingertips. Looking to grow your business? Find out more about what payments with Mollie can do. 

With Mollie as your payment service provider, you get real-time access to your company’s invoices and payouts, along with a detailed overview of your current balance. Plus, you can export all that data to your accounting software in just a couple of clicks. So, when it comes to things like calculating opening balances, you’ve got everything you need at your fingertips. Looking to grow your business? Find out more about what payments with Mollie can do. 

Stay up to date

Never miss an update. Receive product updates, news and customer stories right into your inbox.

Stay up to date

Never miss an update. Receive product updates, news and customer stories right into your inbox.

Connect every payment. Upgrade every part of your business.

Never miss an update. Receive product updates, news and customer stories right into your inbox.

Stay up to date

Never miss an update. Receive product updates, news and customer stories right into your inbox.

Form fields
Form fields
Form fields

Table of contents

Table of contents

Table of contents

What is an opening balance?

Different types of opening balances

How to calculate your opening balance

B/D vs C/D

Why are opening balances important?

Real-time payments with Mollie

More updates

View all

What is unlimited liability in business?

This guide looks at unlimited liability in business, explaining the pros, cons, and the differences between limited and unlimited liability companies.

16 Nov 2022

What is a closing balance? Everything you need to know

A closing balance helps you track spend, keep tabs on inventory, and ensure you're making a profit. Find out what it is, how to calculate it, and why it matters for your business.

9 Sept 2022

What is a credit note?

Understanding credit notes for effective business management. Explore their role, creation, and practical use in optimising financial transactions and accounting.

29 Jul 2022

What is unlimited liability in business?

This guide looks at unlimited liability in business, explaining the pros, cons, and the differences between limited and unlimited liability companies.

16 Nov 2022

What is a closing balance? Everything you need to know

A closing balance helps you track spend, keep tabs on inventory, and ensure you're making a profit. Find out what it is, how to calculate it, and why it matters for your business.

9 Sept 2022

What is an opening balance? Your complete guide

Discover what is an opening balance, how to calculate it and the different types of opening balances.

9 Sept 2022

MollieGrowthWhat is an opening balance? Your complete guide
MollieGrowthWhat is an opening balance? Your complete guide