What is a closing balance?
Definition of a closing balance
A closing balance is the amount in an account at the end of a period of time, like a month or a year.
For your business's assets and liabilities, or in other words what your business owns and what it owes, the closing balance at the end of the last period will be the same as the opening balance at the start of the new one.
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Example of a closing balance:
Your closing balance, or in other words the amount you have in the bank at the end of the day on 31st March, will be the same as the amount you have in the bank at the start of the day on 1st April.
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FreeAgent's Chief Accountant Emily Coltman is available to answer your questions in the comments.