alkusumma

Alkusumma is a term used in Finnish accounting and finance to denote the opening balance of an account at the beginning of a financial period. It represents the amount carried forward from the previous period and forms the starting point for recording transactions in the current period. For example, if an account has an alkusumma of 1,000 euros, that figure is used as the base before income, expenses, or other postings are added or subtracted during the period. The alkusumma, together with the period's transactions, determines the loppusumma, or closing balance, at the period's end.

In practice, the alkusumma is found on ledgers, cash books, and financial statements, and it is commonly used in budgeting, cash flow planning, and account reconciliation. It is often contrasted with loppusumma, the figure that shows the account balance after all period activities.

Etymology and usage: The term derives from Finnish alkusumma meaning "opening sum" and is primarily used in Finnish-language financial materials, though the concept exists in most accounting systems under the English term "opening balance." In Finnish software and standards, alkusumma may appear in ledger views or in bank reconciliation reports. See also loppusumma, tilinpäätös, kirjanpito.