Reconciliation

Reconciliation is the process of matching imported bank transactions to financial records in the system, ensuring your books accurately reflect actual bank activity.

Matched Entity Types

Bank transactions can be matched to the following record types:

Reconciliation Workflow

1. Review Unmatched Transactions

After importing bank transactions, navigate to the Unmatched tab to see all transactions that need reconciliation.

2. Auto-Match Results

The system automatically attempts to match transactions. Review auto-matched results:

• Verify the matched invoice or record is correct
• Confirm the amounts align
• Auto-matched transactions are marked as Matched

3. Manual Matching

For unmatched transactions, manually link them to records:

1. Click on an unmatched transaction
2. The system suggests potential matches based on amount, reference, and counterparty
3. Select the correct record from the suggestions, or search for a specific record
4. Confirm the match
5. The transaction status changes to Manually Matched

4. Ignoring Transactions

Some transactions do not correspond to tracked records (bank fees, interest, etc.):

1. Select the transaction
2. Click Ignore
3. The transaction is marked as Ignored and excluded from reconciliation reports

Matching to AP Invoices

When a bank transaction is matched to an AP invoice:

• The payment is recorded on the AP invoice
• The AP invoice payment status updates (Partially Paid or Paid)
• If the full amount is matched, the invoice status changes to Paid

Matching to AR Invoices

When a bank transaction is matched to an AR invoice:

• The payment is recorded against the customer invoice
• The invoice status updates accordingly
• Outstanding balances are recalculated

Matching to Expenses

For operational expenses not tied to supplier invoices:

• Link the transaction to an expense category
• The amount is recorded in expense tracking
• Useful for bank fees, subscriptions, and ad-hoc purchases

Internal Transfers

Transfers between company bank accounts:

• Match the outgoing transaction from one account to the incoming transaction on another
• These are excluded from revenue and expense calculations
• Keeps inter-account movements clean in the books

Reconciliation Status

Track overall reconciliation progress:

• Unmatched count shows how many transactions still need attention
• Aim to reconcile all transactions before closing a financial period
• Use date filters to focus on specific statement periods