Glossary definition

What is opening balance?

An opening balance is the amount in an account at the start of an accounting period. You might hear it referred to as the amount ‘brought forward’ (BF) from the previous period.

It can apply to bank accounts or your financial records. Unfortunately, opening balances can be debit amounts, as well as credits.

Subscribe to the Sage Advice enewsletter

Join over 500,000 UK readers and get a roundup of our best business advice in your inbox every month.