A single tie-out proves one statement is internally consistent. It says nothing about whether the statement you are holding is the one that should follow the last. The continuity check closes that gap, and for a catch-up job or a year-end file it is the proof that the run of months is complete.
The rule
The closing balance of one statement must equal the opening balance of the next, for the same account and to the cent. Because every statement prints its own balances, each link is independent: a break between February and April does not disturb the link between April and May. A broken link therefore points to one place, and the size of the gap often says what is missing. Read the dates alongside the balances: a statement that starts the day after the last one ended, with the same account number, completes the proof.
The rule is not limited to bank accounts. On a credit card, the previous balance on one statement must equal the new balance on the one before it, and loan and line-of-credit statements chain the same way.
Why run it before importing
Your accounting system finds the same gap eventually, typically as a reconciliation difference in the month after the hole, but only after everything has been imported and categorized. The continuity check finds it first, while the fix is still a phone call to the bank.
What a break means
| What you see | Likely cause | What to do |
|---|---|---|
| The gap equals a period’s net activity | A statement between the two is missing | Request it; do not plug the gap |
| A small difference, cents to tens | A balance misread on a scan, or swapped digits | Compare both printed figures with the pages; one statement will also fail its own tie-out |
| Both statements tie out alone, yet the link breaks | A missing period or a statement from another account | Check the account number and period dates on each |
| The balances chain but the dates overlap | The same days appear on two statements | Remove the repeated days before importing |
| The balances chain but a stretch of dates is missing | A missing month with no net activity | Confirm the period dates with the bank |
| The first opening differs from the books | An opening balance never entered or dated differently | Fix the starting point first |
A worked example
Three statements are on file and one is missing. The Link column holds the previous closing balance minus this opening balance:
Statement Opening Closing Link
January 8,120.40 9,350.75
February 9,350.75 7,910.20 0.00
April 6,482.10 8,004.60 1,428.10The 1,428.10 in April’s row is the net activity of whatever sits between February and April: the account fell by that amount. That tells you what to look for, and it gives you a number to prove. When the March statement arrives, its transactions must net to −1,428.10, and its opening balance must equal February’s closing.
Step by step: run the check by hand
- List the statements in date order. One row per statement: period end date, opening balance, closing balance and the last four digits of the account. Sort by period, not by file name.
- Add a link check. With period end in column A, opening in B and closing in C, enter =C2-B3 in D3 and fill down. Every result should be 0.00.
- Read the dates. Each statement should start the day after the previous one ends. Flag any gap or overlap, even where the balances chain.
- Test the span. The sum of each month’s net change must equal the last closing balance minus the first opening balance.
- Chase every break. Request missing statements. For a small difference, compare both printed figures with the page images.
- Record the result. Note the date range, the first opening balance, the last closing balance and “chain unbroken” in the workpapers.
What can go wrong
- A figure that was never read. If a statement’s opening or closing balance could not be read, its links are flagged and the gap shown may simply equal the other balance. Fix the unread figure before judging the gap.
- Statements from different accounts. Checking and savings statements from one bank look alike. Match the account number on every page.
- Periods that are not calendar months. A cycle that ends on the 15th overlaps a calendar-month label. Rely on the period dates printed on the page.
- Reissued statements. A bank may reissue a statement with corrected balances. Keep the latest copy and note the change.
- Sorting by file name. Downloads are often named by download date. Sort by the statement period.
- The first and last statements. The first opening balance has nothing before it and the last closing balance nothing after it, so the chain cannot test them. Compare both with the books on the same dates.
- Plugging a difference. A journal entry that makes the chain look whole hides the missing statement. Log the gap and request the document.
Where SheetParser fits
Upload up to 12 statements as one batch and the Continuity tab sorts them by date, lays out opening, deposits, withdrawals and closing for each month, and shows every link as tied or as a broken link with the gap amount. It compares what it read from each file, so a misread balance can show up as a break; resolve each statement’s own tie-out first. The bulk statement tool takes up to 150 pages per file on paid plans, and the free allowance is 1 file a day up to 10 pages. For the single-statement test, see the balance-check guide.