# Opening Balances for New Client Books

- Author: AutoBankConvert (https://www.autobankconvert.com)
- Published: 2025-01-09
- Updated: 2025-01-09
- Category: Bookkeeping workflows
- Canonical: https://www.autobankconvert.com/blog/opening-balances-for-new-client-books

> How to set opening balances for new client books from the first bank statement, what to do when prior books disagree, and how to document the starting point.
Opening balances for new client books come from the bank statement that covers the start date: take the balance the bank printed for that day, adjust it for checks and deposits that had not cleared, and post the result as each account's starting figure. Where the client's old books show a different number, record the difference separately and explain it.

## Which bank statement sets opening balances for new client books?

The statement that sets an opening balance is the one whose period ends on the day before your books begin. Its printed closing balance is the bank's figure for that date. For books starting January 1, that is the December statement's closing balance, which should also match the January statement's opening balance.

Use both statements if you can. When December's closing balance and January's opening balance agree, you have two documents from the bank saying the same thing, and the number is hard to dispute. When they do not agree, something changed between the two, such as a late correction by the bank, and you need to know what before you post anything.

The statement has to be the bank's own document, not a client's summary or a screenshot of an app. If the client cannot find the right month, the steps to [request a replacement bank statement](/blog/request-a-replacement-bank-statement) apply here as much as anywhere. A start date with no statement behind it is a guess.

## Choosing the opening balance date for a new client

The best opening balance date is the first day of the client's fiscal year, because the books then hold a complete year and every report starts clean. A mid-year start is workable but leaves the year split between two sets of records. A start on the day you were hired is the weakest choice, since statements rarely end that day.

Pick a date that lines up with a statement boundary. If the client's checking statement runs from the 1st to the last day of the month, the first of a month is easy. If it runs from the 16th to the 15th, the cleanest start may be the 16th, with a note explaining why the books do not open on the first.

When a client has several accounts, all of them should open on the same date, even if their statement cycles differ. That keeps transfers between accounts from falling on one side of the start date and not the other. An account whose cycle does not fit the date will need its balance worked out from the transactions between its statement date and the chosen start.

## What if prior books disagree with the bank opening balance?

When the old books disagree with the bank, the bank balance wins for cash, and the difference becomes a reconciling item you explain rather than bury. Post the opening balance the statement supports. Then list what in the old ledger produces the gap, line by line, until the gap is accounted for or clearly labelled as unexplained.

### A worked example

The figures below are made up for one checking account with books starting March 1.

| Item | Amount | Source |
| --- | --- | --- |
| Bank closing balance, February 28 | 24,610.00 | February statement |
| Less: check 1182 written Feb 26, cleared March 3 | -1,450.00 | March statement |
| Add: deposit made Feb 28, credited March 1 | 2,200.00 | March statement |
| Adjusted cash balance, February 28 | 25,360.00 | Calculated |
| Old ledger balance, February 28 | 25,915.00 | Client's prior file |
| Difference to explain | -555.00 | Calculated |

The adjusted cash figure, 25,360.00, is the opening balance for the account. The 555.00 is where the old books were wrong. In this example, a review of the old ledger finds a 555.00 deposit recorded twice in January. That explanation goes in the file, and the old ledger is not carried forward as truth.

If the difference cannot be traced, post it to an opening balance adjustment account in equity, with the amount and the note "unexplained, see file." Hiding it inside an expense or income account would distort the client's first reports. The same habit applies to small lines nobody can identify later; the guide on [fixing uncategorized transactions](/blog/how-to-fix-uncategorized-transactions) has the questions to ask.

## Opening balances for cards, loans and uncleared checks

Credit cards, loans and uncleared items each need slightly different handling. A card's opening balance is the amount owed on the start date, which is a liability rather than cash. A loan's is the principal outstanding from the lender's statement. Uncleared checks and deposits belong in the cash calculation so the first reconciliation balances.

A card is the account most often opened wrongly, because its statement cycle rarely ends on the start date. Work forward from the last statement before the start, adding charges and subtracting payments up to the day before the books begin. For a loan, use the principal figure on the lender's statement, not the payment amount, and leave interest for the months that follow.

An account that closed shortly before the start date still matters. Its final transfers may land in the new books as a deposit with no obvious source. Handling the last statement of such an account is covered in [closed bank account bookkeeping](/blog/closed-bank-account-bookkeeping).

## Documenting the opening balance starting point

Documenting the start means keeping, for each account, the statement that supports the opening figure, the list of uncleared items, and a short note on any difference with the old books. The file should let another bookkeeper rebuild every opening number without asking you. Store it with the client's permanent records, not in a single month's folder.

A one-page record per client works well. For each account, write the account name and last four digits, the start date, the statement used, the opening balance posted, and any adjustment with its explanation. Add a total for each account so the opening entry can be checked at a glance. [Batch control totals for bank statements](/blog/batch-control-totals-for-bank-statements) describes the same idea applied to a whole run of statements.

Once opening balances are posted, the first month's statement should chain straight from them. If you convert that statement with [AutoBankConvert](/), its balance check confirms that the statement's own opening balance plus its transactions equals its closing balance. Compare that statement opening figure with the cash figure you posted, adjusted for the uncleared items, and a wrong start shows up in the first close rather than at year end.