Let Tally reconcile from statements
When the statement is verified and the period's activity is posted, Tally builds the worksheet, matches the rows, and finishes the reconciliation for you.
What Has To Be True
Tally reconciles a period from statement evidence, so the evidence has to be there and has to be trustworthy:
- a statement covers the period and its extraction is verified;
- the statement maps to an active bank or card register;
- no completed reconciliation already covers that statement end date;
- the period's bank-feed rows are posted, not sitting unposted;
- the prior period for that account is finished.
Excluded bank-feed rows are not reconciliation evidence and stay out of matching. Uploading the statement PDF is not enough on its own — the extraction has to tie before Tally will treat it as evidence.
Turn It On
Open Tally, go to Settings, and select Automations. Enable Reconcile accounts. It runs on the firm's daily automation schedule and covers every company in scope.
You can also ask Tally to reconcile a company in chat at any time without waiting for the schedule.
Read The Result
Tally reports one worksheet per statement-backed period, grouped three ways:
- Done — the period is reconciled. The line names the account, the period, and how many rows were matched.
- Staged — a finish action is prepared and waiting on you.
- Needs you — Tally stopped, and the line says why.
Each worksheet carries one of five outcomes:
| Outcome | What it means |
|---|---|
reconciles_auto | Zero difference. Tally finishes it. |
reconciles_with_routine_entry | A small documented difference. Tally finishes it and posts the adjusting entry. |
needs_approval | The finish is prepared but needs a person to approve it. |
needs_investigation | The difference is not explained. Tally hands it to you. |
blocked | Evidence or a prerequisite is missing. |
reconciles_with_routine_entry posts a journal entry. Review those periods in
the completed reconciliation and confirm the adjustment is one you would have
made yourself.
One Stuck Period Stops That Account
Tally reconciles an account's periods oldest first, because each period starts from the one before it. If a period cannot be finished, Tally stops that account there and moves on to the company's other accounts.
That is why a single unresolved month can look like Tally has stopped reconciling a company. Clear the earliest Needs you period for that account and the later periods usually follow on the next run.
Verify The Work
Open Recs & Statements > Bank Recs and confirm the account shows the completed period. Open the completed reconciliation and check the ending balance, cleared total, and difference against the statement, exactly as you would for one you finished by hand.
See Finish a bank reconciliation for what the completed record contains.
When Tally Hands It Back
A Needs you line names the cause. The common ones:
- The statement extraction does not tie. This is the most frequent cause. The statement PDF is the source of truth — the fix is to correct the extracted data, never to bend the register to match it. Ask Tally to diagnose the statement, then continue the reconciliation it was blocking.
- Activity is not posted. Post the period's coded rows first. See Understand your posting options.
- The balance sign looks inverted. A card or loan register was set up with the wrong sign. See Enter credit-card and loan balances correctly.
- The difference is unexplained. Work it manually — see Investigate a reconciliation difference.
The manual Bank Recs workflow is the fallback for exactly these cases. Start with Prepare for your first reconciliation and work forward.
If a period keeps failing after you have corrected the cause, create a support ticket with the company, account, statement end date, and the reason Tally reported. Do not force a reconciliation to balance to clear the message.