Match bank lines and reconcile

Matching ticks off each bank line against an entry in Books. Reconciling then proves that your books agree with the bank's closing balance on a date.

Important. Matching does not settle invoices or bills. To mark an invoice paid, record the receipt (or the supplier payment) first, then match its bank entry.

Before you start

• You need the Books right Manage banking.
• Import the bank statement first.

Match the bank lines

1. Open Books → Banking and cash, and on the account card open Bank statement. Bank lines to match show Unmatched.
2. Select a line. Books shows Suggested matches from your ledger.
3. If one is right, select Match.
4. If none fits, choose another Month under General ledger and select Show to search further.
5. If the money is not in Books yet (a bank fee, interest), select a bank rule and Create entry, or choose an Account, a Tax code if needed, and select Create entry.
6. If the line should not be matched, type a Reason and select Ignore line.

To undo a match or an ignore, open the line, type a Reason and select Undo match or ignore. Any entry already created stays in the ledger.

Save a bank rule

Open Bank rules, give the rule a Name, the words in Description or reference contains, the Direction, a Minimum amount and Maximum amount, the account to post to, an optional tax code and customer or supplier, and a Priority order. Select Save. Rules show on matching lines; Books never applies them by itself.

Reconcile

1. On the account card, open Bank reconciliation.
2. Set the Date of the statement and the Statement closing balance, and select Show.
3. Read the Book balance, Cleared balance, Outstanding items and Difference.
4. When the Difference is zero and every statement line up to the date is matched, created or ignored, select Finish reconciliation.

Good to know

• Suggestions need the same amount within seven days of the bank date; matching references and names rank higher. One bank line matches one ledger entry: no splits and no several-to-one.
• A customer or supplier on a rule is a label on the entry only. It does not change what they owe.
• Rule amounts include the VAT of the tax code you choose. Transfers between your own accounts cannot have a tax code.
• Outstanding items, such as a cheque not yet cashed, can stay open when you finish.
• An opening item can be cleared by hand with Mark cleared and a reason, after checking the bank statement.
• For an older month, Books may first ask you to select Prepare daily balances.
• A finished reconciliation does not lock the month; see Close a month. Only the latest one can be reopened, with a reason, by someone with the right Set up Books and lock periods.
• Download it as CSV, Excel or Print or save as PDF (browser print). The ledger list in the download covers the page shown.