Bank Reconciliation Explained (For Humans, Not Textbooks)
Bank reconciliation sounds like something only chartered accountants care about. But if you've ever wondered “why doesn't my bank balance match my books?” — that's exactly what reconciliation answers.
Why do they not match?
Almost always, they don't. And that's normal. Here's why:
Cheques issued but not yet cleared
You recorded the payment in your books, but the cheque hasn't hit the bank yet.
Deposits in transit
You deposited cash/cheque but the bank hasn't credited it yet.
Bank charges & interest
The bank debited fees or credited interest you haven't recorded yet.
Errors
Typos, duplicate entries, or forgotten transactions on either side.
Direct debits/credits
EMI payments, standing instructions, or customer NEFT transfers you haven't recorded.
How to do it (the manual way)
Get your bank statement
Download from net banking as CSV or PDF. Make sure the date range matches your books.
Compare line by line
For each transaction in the bank statement, find the matching entry in your books. Check amount, date, and reference.
Mark unmatched items
Anything in the bank statement but not in your books → you missed recording it. Anything in your books but not in the statement → it hasn't cleared yet.
Make adjustments
Record the missing entries (bank charges, interest, direct credits) and wait for uncleared items to clear next month.
How to do it (the smart way)
Sally's bank reconciliation auto-matches your statement against your books:
- ✓ Upload your CSV bank statement (works with all major Indian banks)
- ✓ AI matching scores each transaction by amount, date, and reference
- ✓ High-confidence matches are auto-linked
- ✓ You review the uncertain ones and create missing entries with one click
Ready to try this yourself?
Sally ERP handles all of this — and more. Free trial, no credit card.
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