What term describes the amount of money a business has at the start of the month?

The term that describes the amount of money a business has at the start of the month is referred to as the opening balance. The opening balance is crucial for financial planning and monitoring a business’s cash flow, as it serves as the starting point for tracking income and expenditures over a specific period, such as a month. This balance reflects the funds available for operations and helps in assessing financial health.

In contrast, the closing balance represents the amount of money left at the end of that period, net cash flow refers to the difference between cash inflows and outflows over a period, and outflow specifically focuses on money that is spent or paid out by the business. Understanding these terms is vital for effective financial management in a business context.