What is an Opening Balance?

Opening Balance (definition)

An opening balance refers to the starting amount of money in an account at a specific point in time. This can either be: 

• At Account Creation: The initial deposit or starting amount when a new bank account or ledger is established.
• At the Start of an Accounting Period: The balance carried forward from the previous period, reflecting the closing balance of the prior period. This includes all assets, liabilities, and equity balances for a business.

In accounting systems like QuickBooks Online (QBO), the opening balance is a critical reference point for accurate bookkeeping, as it ensures continuity and correctness when recording financial transactions.