Is the initial balance for banking accounts used for calculating yearly results?

Edit Subject

HI Aramos,

Thanks for contacting us.

Any bank account balances are reflected in your Balance sheet and not your profit and loss account.

The profit and loss is affected when bank transactions are explained, out of pocket expenses, bills and invoices are created.

Your bank sits in the Balance sheet as an asset if it is in credit or a liability if in debit and makes up part of the value of your business.

I hope this makes sense.

Kind regards,

Charissa

Thanks for you reply, that's what I thought! Cheers,