How to carry over a cash balance to the next month
Short answer: carry-over means last month's closing balance becomes this month's opening balance. Find the last balance of the month, write it as the first line of the new month labeled "carried over" (not as cash in), and keep adding cash in and subtracting cash out from there.
Why carry-over matters
A cash book that starts every month at zero loses track of the cash you actually hold. Readers of one popular cash book app put it simply: the balance left last month "doesn't move to the next month automatically", so they had to type it in again as income every month.
1. Close the month
Make sure every cash movement of the month is written, then count the cash. The last balance of the month should match it. That number is the closing balance.
2. Open the new month with it
Write the closing balance as the opening balance of the next month. Mark it clearly as a balance carried over, not as income.
3. Keep cash in and cash out totals clean
Because the carry-over is not cash in, this month's total in shows only new cash. A month report then reads: opening balance + total in − total out = closing balance.
4. Carry over negative balances too
If more cash went out than came in, the balance is negative. Carry it as it is and fix the cause; do not round it to zero.
5. Re-check after back-dated changes
If you add or fix an entry from an earlier month, that month's closing balance changes, and so does every opening balance after it.
Doing this with Cashleaf
Cashleaf carries over automatically: last month's closing balance becomes this month's opening balance, and back-dated entries slot into place and update every balance after them. A period report puts the opening balance, total in, total out and closing balance on one sheet, and you can share it as PDF, CSV or an image card. A negative balance is shown clearly, never hidden.
FAQ
Should I record last month's balance as income?
No. A carried-over balance is cash you already had, not new cash in. Recording it as income makes this month's total in look bigger than it was.
What if the balance at month end is negative?
Carry the negative balance over as it is. Hiding it makes the next month look better than reality; fix it by finding the missing cash in or adding a correction row.
I fixed an entry from last month. Does the carry-over change?
It should. The closing balance of last month changes, so this month's opening balance and every balance after it must change too. Recalculating by hand is where paper books often go wrong.
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