Drawing up an opening balance at the start
Written by Ilias Aarrass7 min read · Published on · Last reviewed on 
In short
The opening balance is the snapshot of your business on its start date: assets on the left, equity and debts on the right, and both sides are equal by definition.
- Private belongings are contributed at market value on the start date, not at the old purchase price.
- Expected revenue, signed quotes and your own working hours have no place on the balance sheet.
- The valuations you choose drive your depreciation for years, so keep the substantiation with your records.
- Costs from before you registered are deductible and the VAT on them can often still be reclaimed.
When you start a business, you begin your administration with an opening balance. That's an overview of what your business owns and what debts there are at the starting moment. Many starters skip this step, but it's important. This article explains how to draw up an opening balance.
What is an opening balance?
An opening balance is a snapshot of your business on the start date. On one side are your assets, such as equipment, stock and money in your account. On the other side are your debts and your equity (liabilities). Both sides must be in balance.
What do you put on it?
On the opening balance you put all business assets you contribute, valued at their value at that moment. If you bring a laptop or car from private into the business, it goes on the balance. Any starting debts, such as a loan, and your starting capital also belong on it.
Why is it important?
The opening balance is the starting point of your administration. It partly determines your depreciation and your equity, which carries through into your profit calculation and your tax. A correct opening balance prevents errors in the following years and gives you a clear starting point.
How do you approach it?
Make a list of everything you contribute to the business and determine the value per item. If in doubt about the valuation of contributed items, it's wise to get help. A bookkeeper draws up the opening balance correctly, so your records are right from day one.
How to build it, item by item
The opening balance sheet is the photo of your business on day one: what you own on the left, how it is financed on the right. For a starting freelancer it is usually small, but the valuations you choose now feed your depreciation for years.
Worked example: a starting photographer's opening balance
- Camera kit, contributed at current value
- € 3,500
- Laptop (bought privately, now business)
- € 800
- Business account balance
- € 1,000
- Right side: equity (all contributed yourself)
- € 5,300
Result: Left and right are equal by definition. You now depreciate the € 4,300 of assets; pre-start VAT is reclaimed where possible
What does not belong on the opening balance
Just as important as what goes on is what you leave off. Signed quotes and expected revenue do not belong there: revenue only arises when you deliver. Your own knowledge and working hours have no balance-sheet value, however valuable they are. And items you keep using mainly privately stay out of the business; with mixed use you often have a choice, made deliberately with the rules in business or private assets.
The car is the usual edge case. You can put it on the opening balance, but labelling it business also means the private-use addition and a VAT correction. Calculate both routes before taking the starting photo, because reversing it is hard.
Do not forget pre-start costs and VAT
Most starters spend money before registering with the Chamber of Commerce: tools, a course, software, a website. Those start-up costs are simply deductible once your business runs, and the VAT on them can often be reclaimed. So gather the receipts from the months before your start date too, and include the items you still have on the opening balance.
Frequently asked questions
Is an opening balance sheet mandatory for a sole trader?
You need not file it anywhere, but your records must be correct from day one and your return asks for a balance sheet. Without an opening balance, your depreciation and equity are off.
At what value do I contribute private belongings?
Market value on the start date: what it is reasonably worth second-hand. Substantiate with comparable listings; you then depreciate that value.
Can I reclaim VAT on contributed belongings?
Not on old private purchases. You can on costs incurred with the business in mind before the start; see reclaiming pre-start VAT.
What if I start with a family loan?
It sits on the right as a debt, on business terms in writing: amount, term and repayment. That keeps clear what is yours and what must be repaid.
Does the balance sheet recur every year?
Yes, every year-end close produces a 31 December balance sheet, which doubles as the new year's opening. The start-date opening balance is made only once.
What is equity in a sole trader business?
The balance of what you contributed plus profits, minus private withdrawals. It is an accounting figure, not a bank account; it shows what of yours sits in the business. How to read such a statement is in reading the balance sheet and profit and loss account.
Sources
- Profit and loss account and balance sheet in the returnBelastingdienst · belastingdienst.nl
- Keeping and substantiating recordsBelastingdienst · belastingdienst.nl
Sources checked on
This article provides general information based on the rules known for 2026 and does not replace personal tax advice. For your specific situation, we're happy to take a look with you.
