Deep inside equity accounting auditors produce a “roll-forward“. A roll forward is simply the recognition that the starting balance, plus or minus any changes in the period equals the ending balance.
Roll forward example: At the end of Month 1, you have $100 in your checking account. You write a check to someone for $25 and you get a $60 deposit. The new balance is $100 less $25 plus $60 which equals $135.
This concept is critical to building a balance sheet forecast.