How to calculate the balance at the end of the month. Foreign trade relations. Export and import operations

In economics, the term balance is actively used. Translated from Italian, the word is translated as “remainder.” The balance is a negative or positive indicator depending on the difference that arose between the expenses and receipts of the enterprise in a certain time period.

Initially, the concept appeared in accounting, but then it began to be used when considering economic relations and connections with other states. Let's consider both areas separately.

Using balances in accounting

The classic meaning of the term “balance” implies the difference in monetary amounts arising between receipts on the company’s balance sheet and debits from its account. Whether positive or negative, the balance objectively shows the financial condition in which this particular enterprise was currently located.

Balance in accounting exists in two types:

Debit balance. If the income of funds, that is, the debit, exceeds the expenses, this balance appears. In this case, the indicator is reflected in a special column of financial assets.
Credit. If the enterprise's expenses, credit, turned out to be higher than income, then data about this is entered in a special liability column. If the balance is zero, the account is closed. There are cases when two types of balances are relevant for one account.

Assets and liabilities are the two components of a balance sheet. Assets can be financial, tangible and intangible. In the case of balances, we are talking about financial assets. Liabilities include current and long-term obligations of the company, which she must deal with sooner or later.

Accounting methods consider it irrational to thoroughly study the history of accounts starting from the first day of a company's existence. For calculations, a strictly defined period of time is taken, for example, a month, quarter or year.

Stands out special classification based on the time period from which it is calculated.

Opening balance. In this case, the balance is calculated at the beginning of a specific unit - year or month.
Balance for a certain period. This is the remainder that was saved during a specific period of time.
Closing balance. It refers to the balance obtained at the end of the month, year or quarter. In order to calculate this type of balance, you should add the opening balance and the turnover indicator from this part of the account, and then subtract from it a similar indicator located in another part.

Trade and payments balance

When carrying out foreign trade, the balance refers to the difference that arises between the amounts of exports and imports over a strictly defined time period. Most often, this period is taken to be one year, but it can be different.

There are two main types of balances in this area:

Balance in relation to the trade balance.
Balance in relation to the balance of payments.

The difference that arises between the value of goods exported and imported is called the trade balance. The indicator can have not only positive but also negative values.

The trade balance indicator itself is no less important. Its analysis is based on its application to a specific area of commerce, class of goods or state.

If exports exceed imports, the situation is such that the state sends more goods abroad than it buys. In this case, a positive balance arises, characterizing the state’s economy as stable. After all, the country does not need most imported goods, which means its economy is capable of independently serving the interests of the country. At the same time, the exporter plays an important role in the world market and makes good money from it.

A negative balance is an alarm bell for the state, because exports are less than imports. This means that the state is not able to provide itself with certain categories of goods in the required quantity, which means its food independence is under threat. Also, low exports may arise due to the weak capabilities of the local economy and the lack of competitiveness of manufactured products. Because of such a balance, the exchange rate may collapse.

In some cases, a negative balance characterizes the economy in a positive way. For example, in the USA and some European countries it is negative, but at the same time the growth of inflation is slowed down, and most of the production goes to the domestic market instead of export. All complex production is located in developing countries.

The balance of payments depends on the previous indicator. It represents the difference arising between the amount of payments from abroad and the amount of payments abroad. If the influx Money more than their outflow, then the balance is positive. And if the state spends more money abroad than it receives, then the balance is negative.

A negative balance of payments has a bad effect on the national currency, depreciating it. Most developed countries prefer to have a positive balance.

Balance is a term adopted in economic theory. It involves certain calculations. Used in foreign trade relations, within the framework of accounting. Necessary for tracking the dynamics of the company's activities. Allows you to reflect the success of the organization. The balance is determined based on accounting information.

What is a balance?

Balance is the difference between income and expenses calculated for the reporting period.

The balance can be positive, that is, greater than zero. This indicates that the enterprise's income exceeds its expenses. The balance can also be negative - less than zero. This indicates that expenses exceed income.

Balance is used in many areas. Its characteristics differ from the area in which it is used. The balance is relevant when calculating the following indicators:

Trade balance.
State balance of payments.

However, the indicator is mainly used in accounting. Its total value must be reflected in the amount of the funds balance at the beginning and end of the period that is the reporting period.

Functions

The balance is extremely important for analyzing the activities of an enterprise. It is required to find out the current financial condition of the company. Based on the indicator, the following points can be determined:

profitability of the enterprise;
stable functioning of the company;
analysis of the organization's profitability for different periods.

For example, an enterprise recorded balance indicators throughout the entire period of its activity. The company has opened a new direction. Previously, the balance was closer to zero, but after the introduction of the new direction it began to grow sharply. This indicates that the innovation increased the profitability of the enterprise.

Example

On March 30, the organization received 500,000 rubles. On the same day, funds were spent on renting premises in the amount of 100,000 rubles. The opening balance on April 1 will be 400,000 rubles.

Accounting balance

The account balance will be the indicator under consideration. The difference between debit and credit will be the balance of the following types:

Debit balance. Formed in a situation where the debit is greater than the credit. Displayed in the balance sheet asset.
Credit balance. Formed in a situation where credit exceeds debit. Records the status of the sources through which funds are received. Displayed on the passive.

The difference between debit and credit (that is, between income and expense) can be zero. In this case, the account will be closed. In some cases, accounting has accounts that have both debit and credit balances.

When considering accounting for the reporting period, the following can be noted:

Opening balance. Another name for it is incoming. This is the account balance. Calculated at the beginning of the reporting time. The calculation is made based on those transactions that were performed by the enterprise before the time in question.
Debit and credit turnover. For calculations, only those operations that were performed at the time in question are taken.
Balance for the period. It represents the total result of the enterprise’s actions during the reporting period.
Closing balance. The second name is outgoing. Represents the balance available in accounts at the end of the month or other reporting time.

The reflection of the balance depends on its type. Calculations must be made regularly. This is important for tracking dynamics.

Balance in foreign trade relations

The indicator is calculated based on relationships with foreign companies. The calculations take into account the following operations:

Export indicators.
Import amount.
Cash receipts from foreign structures.
Payments to foreign structures.

The trade balance is distinguished, as well as a similar indicator of the balance of payments.

Trade balance

Export and import are the basis of foreign trade. The difference between exports and imports is considered the balance. It must be calculated within the established time frame. The trade balance is divided into different types:

Positive. This is relevant if the state sells more than it acquires. The balance will be positive if exports are greater than imports.
Negative. This is relevant when imports are greater than imports. The balance will be negative if the government acquires more than it sells.

Let's take a closer look at the negative balance in the context of the state. This indicator means that the country has a lot of foreign products, but few goods of domestic producers.

Balance of payments

Typically this term is used in trade transactions between states. Almost all countries trade with each other. Relationships involve monetary transactions. The balance of payments is the difference between remittances received from abroad. Payments sent to other countries are also included in the calculation.

The balance can be either positive or negative. Let's consider the features of two varieties:

Positive. The balance can be called positive if there is an excess of payments received from other countries over payments sent to other states.
Negative. The indicator is called negative if there is an excess of payments from the state over receipts to the state.

That is, the division of the balance into positive and negative is accepted regardless of its type. Determining the type of balance occurs after deducting expenses from income.

How to determine the balance?

An accountant is required to keep records of the receipts and expenditures of funds at the enterprise. The specialist also conducts appropriate accounting. This is an extremely responsible job. A small omission can lead to problems during tax audits.

Transactions are reflected through accounting entries. Indicators are recorded using the double entry method. To do this, you need to open a special account.

Accounting accounts are distinguished by two columns: debit or credit. Double entry allows you to track the movement of funds.

There is a certain law of the balance sheet. The sum of all indicators in the accounts is equal to zero. That is, the difference between debit and credit indicators is zero.

As a result.
Balance is a term that is relevant for any organization. Balance displays the remaining balance after deducting all expenses. That is, this indicator allows you to determine the unprofitability or profitability of the enterprise. The balance is used both in domestic trade operations and in foreign trade manipulations. When making calculations, the accounting period is important. The length of the period depends on the policy of the particular enterprise.

Balance is a term that denotes the difference between the receipt of funds and their expenditure over a certain period of time. Although we can talk about what a balance is in many different ways, we will highlight 2 aspects (areas of application) from the perspective of which we will evaluate the meaning of this term: accounting and trade relations with foreign countries.

Balance in accounting

The term “balance” used in accounting means the balance of an accounting account, calculated as the difference between the amounts of the debit and credit entries of the accounts. When recording, it is transferred to new page and is calculated every month on the first day.

In the case when the debit is greater than the credit, we speak of a debit balance - it is recorded in the asset (let me remind you that you can read about it at the link provided) and reflects the state and funds of the organization in the current account on a specific date.
A credit balance occurs when credit exceeds debit. It is recorded in the liability side and reflects the state of the sources of economic funds.

If an accounting account has a balance equal to zero (in other words, it has no balance), then it is considered closed. But it also happens that for some accounts two types of accounts are formed at the same time - both debit and credit.

When we analyze an accounting account, we should be primarily interested in the period of time closest to us, for example, the last month during which the account was kept. Based on this position, we will primarily be interested in data such as:

The opening balance (or it is also called the opening balance) is what was formed when analyzing movements in the account for the last analyzed period (usually a month) and at the beginning of the period (in our case, a month) is the account balance.
Balance for a period is the result of adding up all transactions in an accounting account for a specific period of time.
Debit and credit turnover for the period - indicators that calculate changes in funds recorded in the relevant parts of the accounting account for a certain period.
The ending balance (or it is also called the outgoing balance) - in the case of active accounts, is calculated as the sum of the debit balance at the beginning of the month and the debit turnover minus the credit one. In the case of a passive account, the calculation technology is constructed as follows: the credit turnover is added to the credit balance, and then the debit turnover is subtracted.

As noted earlier, first of all, the accountant is interested in the incoming or outgoing indicators over a period of time of one month.

Concept used in the analysis of indicators in foreign trade

When analyzing or assessing the scale of a country's foreign trade activities, the concept of “balance” has become widespread.

In this area it is appropriate to talk about such definitions as:

Trade balance - is applicable when assessing the difference between the volumes of exports and imports and is calculated, in fact, as the difference between the value of the first and second. The foreign trade balance is an indicator that evaluates the ratio of the value of exported and imported goods over a certain period of time (usually a year). If a certain country has more revenue from selling goods abroad than its costs for purchasing goods from abroad, then it is said that c-do is positive. In the opposite case, when a country purchases goods at a large amount than sells, we should talk about a negative trade balance. Of course, a positive trade balance is the more preferable option, since a negative trade balance creates an oversupply of imported goods in the country, which constitute significant competition for domestic producers. This parameter is relevant, for example, when analyzing a country’s creditworthiness and identifying the level of its reliability for investors. For example, the International Monetary Fund evaluates it when it decides to issue a loan to a particular country. But, in general, this parameter cannot fully assess the current state of the economy in the country. An example is the United States, a country whose trade balance has been in deficit since 1976, despite the fact that the standard of living in the country remains one of the highest in the world.
There is one more parameter that you need to know when analyzing a country's foreign trade - the balance of payments - calculated by subtracting payments given abroad from receipts into the country from abroad. It is worth recalling that the balance of payments itself is a statement in which the movements of funds from one country to another are clearly recorded. Accordingly, a positive c-do is a sign of an excess of payments received from abroad over outgoing ones, and a negative one is a sign that more payments go abroad than enter the country. It is worth noting the fact that international payments take place in the most convertible currencies, such as the US dollar or euro. Consequently, countries with a negative balance of payments, for the most part, gradually lose their foreign exchange reserves. However, this does not fully apply to all countries, since some countries may pay foreign suppliers with their own country's currency, and then simply conduct additional payments. For example, the United States can simply print the required number of dollars. Although, this is not even the only option - there are methods of so-called “indirect” emission that involve the creation of “credit” money using the bank multiplier.

It is worth noting that Russia sells goods going abroad for foreign currency, and therefore there is no need to buy Russian currency from foreign partners receiving the goods.

The last meaning, in which the concept being studied is least often used, has the following meaning: this word refers to the debt incurred by the client to the brokerage firm or, conversely, by the broker to the client when performing exchange transactions that are well known to us from the articles of this project.

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In this article, we learned what a balance is, understood the essence in various areas and gave a qualitative definition. In the next issues, look forward to new articles from the “accounting” section.

Double Entry Posting
Debit = Credit Asset = Liability
Cost calculation
RAS USAS IFRS GAAP

Debit balance(debit is greater than credit) reflects the state of this type of economic assets on a certain date and is shown in the asset balance sheet.
Credit balance(credit is greater than debit) reflects the state of sources of economic funds and is shown in liabilities.

If the account has no balance ( balance is zero), then such an account is called closed. IN accounting Some accounts may have both a debit and a credit balance at the same time.

In practice, not the entire history of an accounting account is often analyzed, but only a certain period of time, for example, the last month. For these purposes, the following are distinguished:

Initial balance(incoming) - account balance at the beginning of the period. Calculated based on previous transactions.
Debit and credit turnover for the period- calculated on the basis of transactions only for the period under review.
Balance for the period- the total result of operations for the period under review.
Final balance(outgoing) - account balance at the end of the period. Usually calculated as the arithmetic sum of the opening balance and turnover for the period.

In foreign trade relations

When characterizing foreign trade relations, they often consider the amount of exports and imports over a period, for example, over a year. In this case, the following are distinguished:

Trade balance- the difference between the cost of exports and imports. Positive trade balance means an excess of exports over imports (the country sells more than it buys). Negative trade balance- excess of imports over exports (the country buys more than it sells). In world practice, it is generally accepted that a negative balance is a bad trend, since excessive imports contribute to flooding the market with imported goods, infringing on the interests of domestic producers. The International Monetary Fund, in its recommendations and conditions for issuing loans, indicates the need and benefit for the economy to have a positive trade balance. At the same time, for several years in a row the United States has had a negative balance of several tens of billions of dollars. At the same time, living conditions in the United States served as a standard of well-being for others.

Balance of payments balance- the difference between receipts from abroad and payments abroad. Positive balance of payments means the excess of all payments coming into a country from abroad over payments from a given country to another. Negative balance of payments- the excess of payments from the country over payments to the country. Typically, international payments are made in the most convertible currency, such as US dollars or euros. A negative balance of payments gradually reduces the country's foreign exchange reserves. It needs to be replenished by selling goods for foreign currency or obtaining stabilization loans. But this does not happen if payments are made in the national currency of the state. Thus, the United States can simply issue (“reprint”) the required number of dollars to cover the negative balance. This will not necessarily be a direct money issue. There are quite a few options for “credit” money. But this is only possible inside banking system the country to which this money belongs.

In 2007, Russia was preparing for the gradual transfer of foreign trade in its goods for rubles: then foreign economic partners would have a need for rubles, which meant the emergence of the opportunity to buy significant volumes of imports also for rubles and/or issue international ruble loans. Unfortunately, the global crisis of 2008 put an end to these plans.

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Synonyms:

See what “Balance” is in other dictionaries:

- (Italian, this, see balance). Balance due upon closing of accounts; state of an account. Dictionary of foreign words included in the Russian language. Chudinov A.N., 1910. BALANCE [it. saldo calculation, balance] econ. in foreign trade:… … Dictionary of foreign words of the Russian language

Modern encyclopedia

Balance- (from Italian saldo calculation, payment, balance; English amount of balance, net balance) in accounting, the difference between cash receipts and expenses for a certain period of time, the difference in the total amounts of debit and credit. Credit balance... ... Accounting Encyclopedia

balance- The difference between cash receipts and expenses for a certain period of time; in international trade and payment settlements, the difference between the value of a country’s exports and imports (trade balance) or between its foreign... ... Technical Translator's Guide

Balance- (Italian saldo calculation, balance), 1) in accounting, the difference between the totals of entries in the debit and credit of accounts. 2) In bilateral foreign trade relations, the balance is the difference between the value of exports and imports (trade balance).… … Illustrated Encyclopedic Dictionary

- (Italian saldo calculation balance), 1) in accounting, the difference between the totals of entries in the debit and credit of accounts. The debit balance (debit is greater than credit) reflects the state of this type of economic assets on a certain date and is shown in ... ... Big encyclopedic Dictionary

- (from Italian saldo calculation, balance) 1) the difference between cash receipts and expenses of a company or enterprise for a certain period of time; difference between cost. exports and imports of the country (trade balance), between payments for... ... Economic dictionary

A. The difference between financial receipts and expenses for a certain period of time. B. The difference between the value of a country's exports and imports (trade balance). B. The difference between foreign payments and receipts (balance... ... Dictionary of business terms

In accounting, just like in mathematics, accuracy plays a big role. There can be no conventions here. At the same time, one of the most meaningful terms many experts call it a balance. We propose to find out what a balance is, whether there is a balance in the economy, and what is commonly understood as a trade balance.

What is a balance in accounting?

Back in the 19th century it was known what a balance was. In those days, the word began to be used as a term calling the balance of funds on all accounts. The meaning remains unchanged today. However, it has now acquired a wider meaning. Previously, it was customary to use it exclusively to indicate the difference between the debit and credit of accounts. Since the 20th century, the use of the term has been able to extend beyond accounting.

This term in accounting is one of the most significant terms. Experts in this field are very well aware of its importance. The balance of payments is the difference that arises between funds spent and funds received over a certain time. For specialists, this concept is broader. The balance is divided as follows:

debit;
credit;
during the period;
outgoing;
incoming.

What is an opening balance?

In accounting, it is important to know not only what the term balance itself means, but also what is commonly understood by such terms as incoming and outgoing balance. There is a significant difference between the opening and closing balances, which every accounting professional should definitely see. The ending balance, or, as it is often called, the closing balance, is the account balance at the end of the period. It is usually calculated as the sum of the opening balance and all turnover for the period.

What is an opening balance?

In accounting and economics, accuracy and understanding of basic processes are very important. Any mistake can be fatal. For this reason, accounting professionals must clearly understand what a balance is and what it can look like. The concept of balance is usually divided into incoming and outgoing. The first is understood as what arose during the analysis of account movements for the last analyzed period and at the beginning of a certain period.

Active and passive trade balance

Beginners in accounting and economics often wonder what a balance is and what an active and passive balance is. The first refers to the excess of exports over imports. As for the passive balance, this term refers to the excess of imports over exports. You can often hear about the net balance, which is a situation where exports and imports are equal.

Balance of payments surplus

Accountants call the balance of payments a certain result, which is reflected in the final line of a certain balance sheet of the country, which is presented in the form of a document resembling a balance sheet. It shows both the revenue and expenditure transactions of the government. The balance of payments is divided into active (positive) and passive (negative). The active balance is the balance between the current transactions account and the balance of the funds flow account.

Passive balance of the balance of payments

A negative or, as it is often called, a passive balance does not always indicate a crisis in the state’s balance of payments, since it can often be covered through the movement of entrepreneurial capital. This can be when the country has a normal investment climate for both foreign and domestic entrepreneurs. We can say that a crisis exists if a significant negative balance is regularly covered by foreign exchange and gold reserves.

How to calculate balance?

Not only accountants, but sometimes even ordinary citizens need to understand how to correctly find out the value of the balance. An example of such a situation where it is important to know about its indicator may be the need to calculate it in a receipt for utilities. Accuracy and certain knowledge are important here. However, not every novice accounting specialist knows how to calculate the balance. It is important to know the main points:

To calculate this value for material resources, it is necessary to add up all the money received for a certain time and expenses for a given period. In this case, you need to calculate the difference between 2 numbers, which will be the balance.
There are formulas with which you can calculate the balance of passive and active accounts:

by debit = initial balance + debit turnover – credit turnover;
by credit = initial balance + credit turnover – debit turnover. This difference is considered very convenient when drawing up reconciliation reports.

What is a balance on a receipt?

Not only specialists, but also ordinary people should know about some aspects in accounting. Sometimes even when paying for utilities, a lot of questions and misunderstandings arise, since it is difficult to understand accounting terms. One of them is considered to be the balance. For some it is a clear and simple term, but for others it has a new meaning. To modern man It is important to understand what a balance is in a housing and communal services receipt.

This value can show the personal account balance at the beginning of this month. And when the value is positive, this indicates an overpayment for utilities. When the number is negative, there are definitely debts. Moreover, this is usually considered after the tenth day of the month following the settlement month. We can say that the balance is considered as an opening balance on the personal account of the residential premises.