What does balance forward mean? Explained

Pronunciation

/bæləns ˈfɔrwərd/ 🔊

Part of Speech

Phrase

Definition

A phrase used in accounting to refer to the amount of money remaining in an account or ledger from a previous period, to be carried over to the next period.

Examples

• The company’s account showed a balance forward of $10,000 from last quarter.
• The auditor reviewed the balance forward to ensure accuracy.

Synonyms

• Carryover
• Remaining balance

Antonyms

• New transaction
• Fresh start

Additional Information

The concept of balance forward is essential in accounting to ensure accurate and consistent record-keeping. It helps businesses and individuals track their financial progress and make informed decisions. In practice, the balance forward is usually calculated by subtracting the total debits from the total credits in an account.

Accurate management of balance forward is critical to prevent errors and discrepancies in financial records. It is especially important for businesses with complex financial transactions, multiple accounts, or those operating in multiple currencies.

In addition to its financial implications, the concept of balance forward can be applied to other areas, such as tracking progress towards personal goals or monitoring resource allocation in projects.

Etymology

The phrase “balance forward” originates from the accounting practice of carrying over the remaining balance from one period to the next. The term “balance” comes from the Latin “bilancia,” meaning “two scales,” and “forward” is derived from the Old English “forweard,” meaning “toward the future.”

Usage Notes

When using the phrase “balance forward,” ensure you specify the relevant period or account to avoid confusion. It is also essential to clearly distinguish between the balance forward and new transactions to maintain accurate records.

Cultural References

The concept of balance forward has been referenced in popular culture, such as in movies and TV shows featuring accounting or financial themes.

Idiomatic Expressions or Phrases

• Carry over
• Roll over

Related Words or Phrases

• Balance sheet
• Account reconciliation

Collocations

• Balance forward from last quarter
• Balance forward to the next period

Frequency of Use

The phrase “balance forward” is commonly used in accounting and finance, particularly in business and professional settings.

Common Misspellings

• Balace forward
• Ballance foreward