Bank reconciliation

Start With The Statement

LedgerHQ can read a verified statement and suggest transaction matches. Start from the account's Bank Recs row and follow the setup or reconciliation action shown there. You can work manually or review the results of automatic statement-backed reconciliation when company Tally AI is on.

Statement coverage and reconciliation are related but separate. A verified statement supplies evidence for a period; reconciliation still depends on the statement date, statement balance, and the posted transactions you check.

Follow The Sequence

1. Prepare the account.
2. Start a bank reconciliation.
3. For a card or loan, enter liability balances correctly.
4. If the difference is not zero, investigate the difference.
5. Finish the reconciliation.

Set Up The First Baseline

The setup wizard asks whether the account was reconciled before. For an account with prior history, enter the last reconciled closing date and select posted items still outstanding at that date. For a first-ever reconciliation, choose the date to start reconciling after. Setup is in Account Settings; opening and ending statement balances are collected when the first real session starts.

For later periods, LedgerHQ carries the last completed ending balance into the next session. Review it before entering the new statement ending balance.

The first-ever setup path lets you choose where reconciliation begins. Earlier imported transactions stay outside the reconciliation pool. See Start a bank reconciliation.

Clear Statement Transactions

Inside the active session, check the transactions that appear on the statement. The list includes every eligible posted transaction that has not been checked in a completed reconciliation, even when its date is outside the current statement period.

If a transaction is missing, check whether it is pending, unposted, coded to a different register, duplicated, or outside the statement period. Use Bank Feeds, Journal Entries, the register, or statement evidence to investigate.

Finish And Record The Result

Finish the session only when Difference is $0.00. LedgerHQ saves a completed snapshot with the balances, cleared rows, difference, and finish details. Rows left unchecked remain available for a later period.

If the firm intentionally accepts an unexplained amount, Book reconciliation discrepancy creates a real posted journal entry. It makes the session balance but does not explain the underlying cause.

To keep a copy, choose Download report on the completed session, or Report on a completed row in Recs & Statements. Either one downloads a PDF of that reconciliation.

Review Unreconciled Activity

Use account activity for eligible posted work. Outstanding transactions shows a narrower review list: active posted entries still unreconciled from the configured starting date through the latest completed closing date. It excludes newer activity. Use Ask Tally to investigate that list before approving any correction. See Outstanding checks and deposits.

Use Open full register for the complete account history. Changing a reconciled transaction's category doesn't affect the reconciliation and needs no unlock. To change which rows are checked, or a row's amount or date, open the completed reconciliation and choose Unlock reconciliation. Only the newest completed reconciliation can be unlocked.

Tally-Assisted Reconciliation

With company Tally AI on, verified statements can finish reconciliations automatically, oldest first. Zero differences finish; differences under $1 can finish with a Reconciliation Entry unless pending activity explains them. Other differences remain for review. See Use Tally with bank statements.