Opening & Closing Balance
BankingThe amount of money in a bank account at the beginning and end of a statement period.
These two figures are the “bookends” of a bank statement period.
Opening Balance:
The amount of money that was in the account at the very beginning of the period covered by the statement. This should always match the Closing Balance of the previous statement.
Closing Balance:
The amount of money in the account at the end of the statement period, after all deposits, withdrawals, and fees have been accounted for.
Formula:
Opening Balance + Deposits - Withdrawals = Closing Balance
Verifying that these balances match the sum of transactions is a key step in ensuring the accuracy of a bank statement conversion.
About Our Financial Glossary
This definition of Opening & Closing Balance is part of our comprehensive financial and accounting processing glossary. Understanding banking terms is crucial for accurate bookkeeping, auditing, and automated data entry workflows. If you regularly work with PDF bank statements or financial documents, consider using SmartBankStatement's professional converter to securely extract, validate, and reconcile your transaction data into Excel or CSV format effortlessly.