How to do account reconciliation?
Account reconciliation is currently in the early phase of development. We are building more features to ensure it has everything you need. But at the current stage, the feature helps you cross-verify the entries you have in your bank statement for the payments you received/made against the amount totals of invoices, expenses, and other accounting documents.
Let's see how.
Go to Advanced Accounting > Chart of Accounts > Account Reconciliation to get started.
You will see the following pop-up form:
First, select the ledger account and the date range for which you want to verify the payment entries.
For example, I want to do a reconciliation for my client "ABC Corp." for the period "Sept 1st - Sept 13th". as shown below.
Once selected, click on "Download Sample File"
The sample file will have the following four columns: Amount, Currency, Credit/Debit, and Date.
Now, I will go through my bank statement and look at all the transaction entries for this client for the given period. Then, I will add all these entries to the sample file I downloaded earlier.
Once you have added the entries to the sheet, upload it as a CSV file in the same pop-up form.
After the upload is done, the system will send you an email with a detailed reconciliation report:
You can download the reconciliation report to see which entries match and which do not with the reason behind the mismatch:
If an entry shows an error as "Unmatched Lineitem", it means that the entry exists in your Refrens account but not in the CSV file you uploaded.
On the other hand, if the entry shows an error "Unmatched Transaction", it means that the entry that you have provided in the CSV file does not exist in your Refrens account.
That's it! Now you can easily cross-verify the entries you have in your bank statement for the payments you received/made against the amount totals of invoices, expenses, and other accounting documents.
We will be coming up with new features where we will automatically fetch entries from your bank statements and pass ledger entries for them. (_You can sign up for early access here._)
Let's see how.
Go to Advanced Accounting > Chart of Accounts > Account Reconciliation to get started.
You will see the following pop-up form:
First, select the ledger account and the date range for which you want to verify the payment entries.
For example, I want to do a reconciliation for my client "ABC Corp." for the period "Sept 1st - Sept 13th". as shown below.
Once selected, click on "Download Sample File"
The sample file will have the following four columns: Amount, Currency, Credit/Debit, and Date.
Now, I will go through my bank statement and look at all the transaction entries for this client for the given period. Then, I will add all these entries to the sample file I downloaded earlier.
Once you have added the entries to the sheet, upload it as a CSV file in the same pop-up form.
After the upload is done, the system will send you an email with a detailed reconciliation report:
You can download the reconciliation report to see which entries match and which do not with the reason behind the mismatch:
If an entry shows an error as "Unmatched Lineitem", it means that the entry exists in your Refrens account but not in the CSV file you uploaded.
On the other hand, if the entry shows an error "Unmatched Transaction", it means that the entry that you have provided in the CSV file does not exist in your Refrens account.
That's it! Now you can easily cross-verify the entries you have in your bank statement for the payments you received/made against the amount totals of invoices, expenses, and other accounting documents.
We will be coming up with new features where we will automatically fetch entries from your bank statements and pass ledger entries for them. (_You can sign up for early access here._)
Updated on: 31/01/2025
Thank you!