How to carry over the balance to next month
Carrying over means taking what was left at the end of last month (the closing balance) and writing it as the first line of this month (the opening balance). The formula is carried over + cash in − cash out = money left, and this month's money left becomes next month's carry-over. If you're not paid on the 1st, start each month on your payday instead.
How to work out the carry-over
Take last month's opening balance, add all cash in and subtract all cash out. The result is last month's closing balance, which becomes the first line of this month: "Carried over from <month>". Count the actual cash first to make sure the two match.
| Month | Carried over | Cash in | Cash out | Money left |
|---|---|---|---|---|
| August | 0.00 | 300.00 | 220.00 | 80.00 |
| September | 80.00 | 300.00 | 310.00 | 70.00 |
| October | 70.00 | 300.00 | 250.00 | 120.00 |
Month-end steps
- Make sure every entry for the month has been recorded.
- Total cash in and cash out, then work out carried over + cash in − cash out.
- Count the actual cash (or the wallet, envelope or box) and compare.
- Write "Carried over from <month>" with that amount as the first line of next month.
- If the result is negative, carry it over anyway so next month shows what needs to be made up.
Paid on the 5th? Start your month on payday
If your money arrives on the 5th or the 25th, splitting by calendar month makes the start of each month look like all spending and no income. Instead, run your month from payday to the day before the next payday. Paid on the 5th? Then "October" is October 5 to November 4, and the November 4 closing balance carries over on November 5.
The same works for allowances or club dues collected on a fixed day.
Common mistakes
Copying the carry-over amount by hand and getting a digit wrong, or fixing an entry in an earlier month without updating every carry-over after it. The carry-over line must always equal the previous closing balance, so a change in the past ripples forward.
Automatic carry over in Cashrow
When a new month starts, Cashrow adds what's left as the first line, "Carried over from <month>", automatically. Set the month start day to your payday, any day from 1 to 28, and if you edit an older entry, the later carry-overs update with it. The monthly report shows carried over, cash in, cash out, money left and a daily chart.
Not accounting or tax advice
This guide is general information about keeping a record of cash. It is not accounting or tax advice. Bookkeeping and record-retention rules for businesses vary by country and business type; if you need to meet them, check with an accountant or your local tax authority.
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