What is the balance?
The balance is usually identical to the account balance, which is derived from the Billing of Should and have yields. It therefore describes the difference between debit and credit. It is detected at a specific point in time and is then either positive or negative. Accordingly, it represents a profit or loss. That is why you are also investigating it as part of Profit and loss statement. If the credit side of the account is larger, is it a Credit balance or positive balance. If the target side is higher, is it a Debit balance or negative balance.
Daily vs. closing balance
Depending on when you determine it, it is referred to as the daily or closing balance. Companies are loud HGB thereto required to calculate the closing balance at least once a year, which usually goes to Financial statements is the case. You usually represent him for business accounts But fixed at the end of the month. Because companies also need the closing balances for Advance sales tax return or other tax investigations.
In addition, you regularly provide him with the Account confirmation, where you set up all posts. In doing so, you list all outstanding liabilities and receivables in writing with the aim of confirming the accuracy of the books. Once signed, changes are no longer possible. For confirmation, the information must match the corresponding amounts on customer and supplier accounts. It will be important for Annual financial statement audit by auditors, which is mandatory for companies subject to accounting obligations.
Accounting balance
In the double bookkeeping Does the balance also provide information as to whether the Debit and credit page in the balance sheet counterbalanced are. Each account has a balance on the balance sheet. It is also used to post the equivalent value on the debit or credit side of an account so that balance is guaranteed. It therefore forms a settlement item in double accounting.
The annual financial statements are always accompanied by Balance presentation At which you the Balance of Inventory accounts carried over to the new financial year. The inventory accounts or categories that belong to them are investments, loans, payroll liabilities, continuous items, debtors and creditors as well as the checkout. When a Court finds outstanding claims from a creditor, are these claims titled. As a result, it may issue an enforcement order.
