Opening Balance - GCSE Business Definition

An Opening Balance is the amount of money in a business's bank account at the start of an accounting time period. It is the financial starting point for a given time frame, typically a month or a year. In GCSE Business, understanding the opening balance is crucial, as it forms the basis for tracking cash flow, measuring financial performance, and planning future budgets. It is recorded in the business's accounting records and is used to compare incoming and outgoing transactions, helping students grasp how businesses manage their finances effectively.