Bank Reconciler by ReconcileIQ
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Bank Reconciler · GuideStep by step

How to do a bank reconciliation, step by step.

First the method: how to prepare a bank reconciliation statement by hand, and why each adjustment is there. Then every screen of Bank Reconciler, from the upload to the report you put on the file, with what you will see at each step.

Open Bank Reconciler Start with the method
5 steps by hand8 steps in the toolFree sample run, no upload
Part one · the method

How to prepare a bank reconciliation statement.

Whether you do it on paper, in a spreadsheet or in software, a bank reconciliation follows the same five steps, and the bank reconciliation format in the sample below is the standard layout. The bank reconciliation steps are the same in every bank reconciliation process; guides that count seven steps split matching and correcting into more parts, as our seven-step bank reconciliation guide does. Want the theory first? The reconciliation FAQ explains what reconciliation means and who prepares the statement. Want a bank reconciliation form to fill in? Use the free bank reconciliation template.

  1. Gather both records for the same periodThe bank statement, and the bank account (the cash book) in your books, both running to the same closing date.
  2. Match each statement line to the booksTick off every line that appears in both, for the same amount. This is the slow part by hand, and the part software does for you.
  3. List what is left on each sideOn the bank side: unpresented cheques and lodgements (deposits) in transit. On the books side: bank charges, interest and direct debits the bank has taken but you have not recorded.
  4. Correct the booksPost the items that belong in the books (charges, interest, missed receipts) and fix any errors. Timing differences are left alone: they clear next month.
  5. Check the two adjusted balances agreeThe bank balance, adjusted for timing differences, must equal the corrected cash book balance. If it does not, a match was wrong or an item is missing: go back to step 2.
Sample bank reconciliation statementAt 31 Mar 2026
Bank side
Balance per bank statement8,214.60
Add: lodgement in transit2,450.00
Less: cheque 000417 not presented(1,200.00)
Adjusted bank balance9,464.60
Cash book side
Balance per cash book9,470.00
Add: bank interest received3.10
Less: monthly account fee(8.50)
Corrected cash book balance9,464.60
Balances agreeDifference 0.00
Part two · in Bank Reconciler

The same job, screen by screen.

Here is how to reconcile a bank statement in Bank Reconciler. Bank statement reconciliation is steps 2 and 3 of the method, and the tool does them for you and shows its working, so your time goes on the items that need a decision. Each step below names the buttons exactly as they appear on screen. Want to see it before you upload anything? The See it work on sample data button on the upload screen runs a sample reconciliation free.

  1. Get the two files

    You need the bank statement and the bank account from your books, covering the same dates. Most banks and most accounting platforms export a CSV, and that is what the reconciler reads. If you are not sure where, press Instructions on the upload screen: pick your bank or your software and press Show Instructions for the export steps, written for that bank or platform.

    Only have a PDF statement? Convert it first (step 3). Books on Xero, QuickBooks, Sage, Pandle, FreeAgent or YNAB? You can skip the books export and import straight from the platform (step 4).

    InstructionsUpload screen
    Santander
    QuickBooks
    1. Log in to Business Online Banking.
    2. Open the account and choose the statement period.
    3. Download the transactions as CSV.

  2. Choose the method

    Above the reconcile button are two options. Bank Reconciliation compares a bank statement with the books. Invoice-Payment Matching compares a list of invoices with a list of payments, for invoice and payment reconciliation.

    In invoice mode the two upload boxes become Invoice Data (CSV only) and Payment Data (CSV only), and each invoice is paired with a payment by weighing the amount (60%), the description (35%) and the date (5%), looking up to 150 days after the invoice.

    MethodUpload screen
    Bank ReconciliationInvoice-Payment Matching
    Amount match60%
    Description similarity35%
    Date proximity, within 150 days5%

    The weighting shown when Invoice-Payment Matching is selected.

  3. Upload the files, or convert a PDF

    Drop the statement on Bank Statement (CSV only) and the books export on Bookkeeping Software (CSV only), or press Choose Files, then press Reconcile Statements. Both boxes take CSV files: if your export is an Excel workbook, save it as CSV first. You can drop up to 12 CSV files on each side; they are merged before the reconciliation. Each file, and the merged upload on each side, can be up to 10MB.

    For a PDF statement, open Or convert a PDF bank statement to CSV on the same screen: drop the PDF, press Convert to CSV, then press Use for Reconciliation to load it as the bank statement, or Download CSV to keep a copy. Conversion uses 2 credits a line, with a 10-credit minimum per statement, and needs a paid plan or purchased credits; a free account gets one free conversion, covering the first 10 pages of one statement, once its email is verified. Drop several PDFs (or photos) at once, up to 12 (1 on the free trial), and they convert together.

    Tip. A PDF is converted line by line from what is printed on the statement. Glance down the CSV before you use it, especially for a scan or a photo.

    UploadBank Reconciliation
    Bank Statementstatement-mar.csvChoose Files
    Bookkeeping SoftwareDrop up to 12 CSVs. We merge them before reconciliation.Choose Files
    Reconcile Statements
    212Transactions
    LloydsBank
    DD/MM/YYYYDate Format

    Below the drop boxes: after Convert to CSV, the converter reports what it read before you use it.

  4. Or import the books from your platform

    Press View Connections and connect Xero, QuickBooks, Sage, Pandle, FreeAgent or YNAB by OAuth. Choose the organisation, the bank account and the date range, then import the transactions: for Xero, in the Import from Xero window, press Import Transactions. The imported lines take the place of the books file.

    Connecting also lets you send fixes back to the platform at the end (step 8). We never see your accounting password, and you can disconnect at any time.

    Import from XeroConnected
    Organisation: Harbour Florists Ltd
    Account: Business Current Account
    Date range: 1 Mar to 31 Mar 2026
    Import Transactions

  5. Check the column mapping

    Bank Reconciler reads the columns for you and shows its guess over a sample of each file, in two stages: 1 Bank statement then 2 Bookkeeping export. Check that Date, Description and the amount are on the right columns. To change one, pick the column type (Date, Description, Single Amount, Money In, Money Out, Fee) and move it onto the right column.

    Confirm the Date format (DD/MM/YYYY, MM/DD/YYYY or YYYY-MM-DD) for each file, and tick This is a credit card statement if it is one. Then press Continue to bookkeeping mapping, check the books file the same way, and press Approve bookkeeping mapping and reconcile.

    Tip. Most failed reconciliations are a wrong date format or an amount mapped to the balance column. A minute here saves re-running.

    Bank Statement MappingStage 1 of 2
    1Bank statement2Bookkeeping export
    DateDescriptionSingle AmountMoney InMoney OutFee
    DateDateNarrativeDescriptionValueSingle AmountBalance
    03/03/2026TESCO STORES 4521-42.188,172.42
    09/03/2026FPS ACME LTD960.009,132.42
    Date format:DD/MM/YYYYMM/DD/YYYYYYYY-MM-DD
    Continue to bookkeeping mapping →

  6. Read the results

    The results screen opens on the items that did not match. Unresolved Missing lists lines on the bank statement that are not in your books: usually charges, interest, receipts or payments not yet recorded. Unresolved Extra lists entries in your books that are not on the statement: timing differences, duplicates or errors.

    Manually Confirmed holds the matches you confirm yourself, Matched Transactions shows what paired up, each marked as an exact match or as so many days apart, Overview & Insights summarises the reconciliation in charts, and Pattern Analysis groups recurring unmatched items so a repeated problem stands out. On each list, the Search descriptions... box and the Min and Max amount filters narrow a long list down.

    ResultsMarch
    Unresolved Missing3Unresolved Extra2Manually ConfirmedMatched Transactions412Overview & InsightsPattern Analysis
    28 Mar MONTHLY ACCOUNT FEE−8.50
    14 Mar CARD TAKINGS1,284.40
    21 Mar BACS NORTHFIELD318.00

  7. Clear what is left

    Where the engine has found a likely partner for an unmatched line, the row shows that one best candidate as a Match badge with its confidence, such as Match (86%). Above 80% the row also carries a Confirm button; below that, open Details and press Confirm Match if you agree. Where several entries dated the same day add up to one line, such as a day's card takings paid in as one deposit, it offers Confirm Batch. On the Extra side, Find Batch checks whether this entry and other book entries dated the same day add up to one bank line; if they do, that bank line offers Confirm Batch. Run Batch Analysis, at the top of the results, looks for every same-day batch at once. Details opens the full line on any row. Confirm the ones you agree with; they move to Manually Confirmed.

    What remains is your reconciling list. Timing differences (cheques not presented, lodgements in transit) are left as they are. Everything else needs an entry in the books, or a correction to one.

    Unresolved MissingSuggestions
    CARD TAKINGS 14 MAR1,284.40Confirm Batch Details
    BACS NORTHFIELD Match (86%)318.00Confirm Details
    MONTHLY ACCOUNT FEE−8.50Details

  8. Push fixes back and export the report

    If the books came from a connected platform, the results screen offers to fix them there. For Xero: Add to Xero imports the missing transactions as reconciled bank transactions, and Remove from Xero deletes the extra ones, after a confirmation. QuickBooks, Pandle, FreeAgent and YNAB have the same pair. For Sage, Write to Sage adds lines only, choosing Bank Statement Unmatched, Book Unmatched or All Unmatched; extra entries are deleted in Sage itself. Added lines post to a default account, so review and recode them in the platform, or code the statement in CodeIQ before posting instead.

    Then export the bank reconciliation report: Export Current View PDF for what you have filtered, Export Full Report PDF for everything, and Download Missing & Extra CSV for the items to clear. The reconciliation is also saved in your browser, so you can come back to it.

    Tip. Re-run the reconciliation after you post the fixes: a clean run with nothing left but timing differences is the proof for the file.

    FinishResults screen
    Add to XeroImport missing transactions
    Remove from XeroDelete extra transactions
    Export Current View PDFPDFExport Full Report PDFPDFDownload Missing & Extra CSVCSV
Part three · particular cases

Payouts, refunds and the awkward ones.

The situations people search for most, and how each one shows up in a bank reconciliation. Platform-specific walkthroughs live in the Xero, QuickBooks and Sage reconciliation guides.

How to reconcile Stripe payments

Stripe pays out in batches: one bank line made of many sales, less Stripe's fees, usually covering several days. Bank Reconciler's batch matching only groups book entries dated the same day, so a multi-day payout will not batch on its own. The clean way is a Stripe clearing account: record each payout in the books as a transfer from the clearing account to the bank, and the payout then matches one for one. Then reconcile Stripe's payout report against the clearing account, uploading the report as the "bank" file, with Stripe's fees recorded as an expense. The Merchant Parser button on the upload screen is for marketplace statements: it parses eBay, Amazon and PayPal exports; a Stripe payout report goes straight in as a CSV.

How to reconcile a refund

A refund you received is money in: it should match a credit note or a reversed expense in the books. A refund you paid is money out against a customer credit note. If the refund appears on the bank but not in the books, it will sit under Unresolved Missing: record it against the original supplier or customer, then re-run. If the bank shows the original charge and the refund, both lines must exist in the books; netting them into one entry leaves two unmatched lines.

How to reconcile an overpayment

When a customer pays more than the invoice, the bank line is larger than anything in the books. Record the receipt in full, allocate the invoice amount, and hold the excess as a credit on the customer's account (or refund it). In Invoice-Payment Matching mode the amounts disagree, so an overpayment pairs with its invoice at a lower confidence or not at all: check the low-confidence pairs and the unmatched payments.

Credit card reconciliation

Card statements usually show spending as positive numbers, the opposite of a bank account. On the mapping screen, tick This is a credit card statement so charges are read as money spent. Then reconcile the card statement against the credit card account in your books, exactly as you would a bank account.

How to undo a bank reconciliation

Nothing is locked in Bank Reconciler: re-run the reconciliation with corrected files whenever you like, and your earlier runs stay in your browser's history. If you used Add to Xero (or the QuickBooks, Sage, Pandle, FreeAgent or YNAB equivalent), delete those transactions in the platform to reverse them. To undo a reconciliation inside QuickBooks Online itself, an accountant user can do it from the reconciliation history for the account; in Xero, use Remove & Redo on the transaction.

How often to reconcile

At least monthly, when the statement arrives, and always before a VAT return or the year end. Busy accounts are easier weekly: the fewer lines outstanding, the faster the unmatched items are explained. Each statement line uses one credit, so the cost is the same however you split the periods.

Troubleshooting

When something does not look right.

The usual bank reconciliation problems, and the causes to check, in order.

Almost nothing matchedUsually the date format. Check the Date format on both mapping stages (a UK file read as MM/DD/YYYY swaps days and months), and that both files cover the same period.
Every amount is on the wrong sideThe amount column was mapped as a single amount when the file uses separate columns. Map Money In and Money Out instead, or tick the credit card option for a card statement.
The mapping will not continueThe panel shows how many of the three required columns are mapped (0/3 required columns mapped). Map Date, Description and an amount on both files.
The file will not uploadThe reconciler reads CSV files. Save an Excel export as CSV (File, Save As, CSV) and drop that in instead.
A file is too bigEach file can be up to 10MB, and so can the merged upload on each side. Split the period into smaller date ranges and reconcile them in turn.
The PDF did not convert wellTry the CSV export from your bank instead: the Instructions button shows where to find it for your bank. Scanned or photographed statements convert, but a clean digital PDF or CSV is always more reliable.
Fees break the matchesPayment processors and some banks deduct fees before paying out. Map the Fee column if the file has one, or record the fees in the books before reconciling.
Questions

Before you start.

Short answers to what people ask before their first reconciliation. The full FAQ has more.

How do you prepare a bank reconciliation statement?

Take the bank statement and the cash book for the same period, tick off every item that appears in both, then list what is left. Adjust the bank balance for timing differences (add lodgements in transit, deduct unpresented cheques) and the cash book for items only the bank has recorded (charges, interest, direct debits). The two adjusted balances must agree. The method above and the free template show the format.

What do I need before I start?

The bank statement and the bank account from your books for the same dates, as CSV files (save an Excel export as CSV first), or a PDF statement to convert. If your books are on Xero, QuickBooks, Sage, Pandle, FreeAgent or YNAB, you can import them instead of exporting a file.

How long does a bank reconciliation take?

By hand, a few hundred lines can take an hour or more, most of it ticking. In Bank Reconciler the matching itself takes seconds, at more than 5,000 lines a second, so the time goes on checking the mapping and deciding what to do with the handful of items left over.

Can ChatGPT do a bank reconciliation?

Not reliably for a full statement. A general chatbot can drop or invent lines in a long table and leaves no audit trail. Bank Reconciler matches every line and lists exactly what is left on each side, with a report for the file.

Can I do a bank reconciliation without connecting my accounting software?

Yes. Upload a file from the bank and a file from the books and reconcile them. Connecting a platform only saves the export and lets you send fixes back.

What does a bank reconciliation cost in Bank Reconciler?

One credit a statement line, and two a line to convert a PDF statement, with a 10-credit minimum per statement. The free tier gives 1,000 one-off credits with no card, released when you verify your email, and Starter at £5 a month adds 5,000 credits every month. Converting PDFs needs a paid plan or purchased credits, though a free account gets one free conversion, covering the first 10 pages of one statement, after verifying its email. The sample run on the upload screen is free.

Where next.

Four places to go from here, depending on what you need.

The FAQWhat reconciliation means, the purpose of a bank reconciliation, and every product question.Read the FAQ → The templateA bank reconciliation statement to fill in online, downloadable as Excel, CSV or PDF.Open the template → The PDF converterTurn a PDF bank statement into a clean CSV before you reconcile.Convert a statement → The featuresThe matching engine, both methods, integrations and scope in one tour.See the features →

Reconcile your first statement.

Free to start: no card, 1,000 credits once your email is verified, and one credit a statement line. Or run the free sample first and see the matching and results screens on a sample business.

Start free Open Bank Reconciler