The balance is the difference between debit and credit, or rather income and expense. This value is used in reconciliation with counterparties, as well as to determine the balances of various accounts. There are two types of balances: initial - the balance at the beginning of the selected period and the final - the balance at the end of the period. The period in this case can be any length of time.
Instructions
Step 1
Typically, an indicator such as the balance is automatically calculated by any program created for accounting. But if you decide to calculate this value yourself, then you need to first collect all the data for the period you need. For example, if you are calculating the balance of settlements with customers, then you will need all documents confirming the fact of acceptance of the goods (rendering of services) and the receipt of funds.
Step 2
First, you need to sum up all the goods expressed in monetary terms, that is, the amount of payment for the shipped products (services rendered). Then add up all the receipts that were received from this counterparty. The documents used to clarify cash receipts are checks, money orders and others.
Step 3
Next, you need to determine the balance at the beginning of the selected period, for this you can view the old calculations or also use the program. If, at the beginning of the selected date, there were no business transactions with this buyer, then the opening balance will accordingly be equal to zero.
Step 4
Then it is necessary to deduct the expense (the amount of goods shipped or services rendered) from income (the amount of cash receipts). The resulting number will be the balance. If at the beginning of the selected period the transactions were completed, then this amount must be taken into account when calculating.
