Reconciling your bank account

Bank Reconciliation ties each line of your bank statements to your books. SmartLedger.AI suggests the invoice, bill, journal entry or recorded payment behind each line; you confirm it, and SmartLedger records the receipt, payment or journal entry.

Before you start

• Import and confirm your statement first. Lines appear here once the statement is added to your books.
• Bank Reconciliation is part of the Pro plan. On other plans the page shows an upgrade prompt.
• Matching covers the current financial year (1 April to 31 March). Older lines stay listed as New and aren't matched.

Run matching

1. Go to Banking → Bank Reconciliation.

2. Click Run matching at the top of the page.

   Lines show New until matching runs. You can also click Start reconciliation on a statement's row in Statements.

3. Wait while the lines show Processing. Your matching rules run at the same time.

When matching finishes, each line has one of these statuses:

• Suggested — SmartLedger.AI found likely documents for you to confirm.
• Unmatched — nothing fits yet.
• Matched — linked to a document or given a ledger, but not in your books yet.
• Posted — in your books.

Confirm the suggestions

1. On a Suggested line, check the document in the Account / Match column and its confidence percentage.

2. Click Confirm to accept it.

   For a sales or purchase invoice, click the arrow next to Confirm and choose Confirm & record receipt or Confirm & record payment to finish the line in one step.

3. To pick a different document, click the line (or its Resolve button) to open it. The Match tab shows each suggestion with Why this match. Select one and click Match transaction, or click Not here? Search books to look through your other open documents.

Post each line to your books

A matched line isn't in your books until you finish it. The button on the row says what it will write:

• Record receipt — records the money as a receipt on the sales invoice.
• Record payment — records it as a payment on the purchase invoice.
• Create journal entry — books a line you gave a ledger or split.
• Post draft — posts a draft journal entry made for the line.
• Confirm — for a match to a journal entry or recorded payment that's already in your books.
• Move to bank — when the invoice was already paid into Undeposited Funds or cash.

Each one shows the effect and asks you to confirm, and the line then shows Posted. To finish many lines at once, tick them and click Post to books.

If the bank amount differs slightly from the document, the Variance column shows the gap; click Book to book it as bank charges when you post. A line that pays only part of an invoice shows Part payment, and the rest of the invoice stays open.

The Needs review count

The Needs review card, and the number next to Bank Reconciliation in the sidebar, count the Unmatched and Suggested lines across all your accounts: the lines waiting for your decision. Use Status → Needs review to list only those.

When you're done

The Reconciled card shows your progress as a percentage. A statement shows Reconciled on the Statements page once every line is matched or posted, and the account shows Up to date in Bank Accounts. Post any matched lines so they reach your books.

Tips

• Click Run matching again after you add invoices or bills, so open lines get fresh suggestions.
• Open a posted line's three-dot menu and choose Undo posting to reverse it, or Mark as false match on a matched line to send it back to Needs review.

Related articles

• Resolving unmatched bank lines
• Importing a bank statement
• Creating a matching rule
• SmartReconciliation