Formation and purpose of the movement balance within the framework of the entrepreneurship the motion balance represents a means of period-related analysis of an undertaking in the context of balance sheet analysis of cash flows and enables to represent the Bestandkontenveranderungen of two periods. The balance of the movement is formed by two each other following annual financial statements. From balance of movement is clear, received what types of funds in the period and what use they have experienced. The balance of movement as a result of the investment and the resources for applied card is suitable in particular for the analysis of cash flow changes. Just for company founder the movement balance potential large to control the fulfillment of the goals in terms of the business plan, and if necessary to counteract. To the formation of the movement balance, producing a difference balance from the previous year and annual balance sheet is by subtracting the previous value of the current value.
In contrast to the normal balance, the balance of movement may exhibit negative values. The sides of the balance sheet of the Balance of the movement are referred to on the active side with use of funds and allocation of capital and on the liabilities side with funds or capital origin. The balance sheet page of of use of funds is divided into the increase in assets and the reduction in capital. While the increase of the investment, the general circulation – and current assets to increase the ability to pay are shown under assets increase. The increase of in working capital to increase the ability to pay can be on the acquisition of securities, bank deposits and cash holdings. The capital reduction includes the reduction of the equity and debt capital. The reduction of the debt can be through the mining of raw materials and the decrease of retained earnings to be. The balance page to the source of the funds or capital origin contains the items equity financing through increase of the subscribed capital and capital reserves, debt financing on the increase of foreign capital, the self-financing of the increase of in retained earnings and profit carried forward, the Refinancing of the reduction of the investment, general working capital and the ability to pay and finally the financing from depreciation reflux. The balance sheet total of the balance of the movement must be balanced on both sides. As a result, the sum of the investment and the capital repayment of the sum of financing and liquidation has to comply with. Jens Graupner