Skip to main content

Reconciliation

Bank reconciliation ensures your Books records match your actual bank statements. Books supports transaction import, auto-categorization rules, and a guided reconciliation workflow with a month-end close checklist.

Bank Account Setup​

Before reconciling, set up your bank accounts:

  1. Navigate to Banking > Bank Accounts
  2. Click New Bank Account
  3. Enter the account name, bank name, account type, and last four digits
  4. Link it to a GL account (e.g., 1010 - Operating Checking)
  5. Enter the opening balance and date

Importing Bank Transactions​

Books supports importing transactions from your bank:

CSV/OFX Import​

  1. Download a CSV or OFX file from your bank's website
  2. Navigate to Banking > Import
  3. Select the bank account
  4. Upload the file
  5. Map columns (date, description, amount) if CSV
  6. Review the preview and click Import
💡OFX files are preferred — they include standardized transaction data and don't require column mapping.

Auto-Categorization Rules​

Set up rules to automatically categorize imported transactions:

  1. Navigate to Banking > Rules
  2. Click New Rule
  3. Define the match criteria:
    • Description contains — text pattern matching
    • Amount range — minimum and/or maximum amount
    • Transaction type — debit or credit
  4. Set the action:
    • GL Account — which account to post to
    • Vendor/Customer — auto-assign
  5. Save the rule

When transactions are imported, rules are applied automatically. Matched transactions are pre-categorized for review.

ℹī¸Rules are applied in priority order. More specific rules should have higher priority to avoid incorrect matches.

Reconciliation Workflow​

To reconcile a bank account:

  1. Navigate to Banking > Reconcile
  2. Select the bank account
  3. Enter the statement date and ending balance from your bank statement
  4. Books shows all uncleared transactions
  5. Check off transactions that appear on your bank statement
  6. The difference (statement balance minus cleared balance) should reach $0.00
  7. Click Finish Reconciliation

Handling Unmatched Transactions​

If your bank statement shows transactions not in Books:

  • Missing deposits — Record the payment or deposit in Books, then clear it
  • Missing charges — Create an expense or bill payment, then clear it
  • Bank fees — Create a journal entry (DR Bank Fees Expense, CR Bank Account)

If Books shows transactions not on the statement:

  • Outstanding checks — Leave unchecked; they'll clear in a future period
  • Pending deposits — Leave unchecked; they'll appear on the next statement
  • Errors — Void the incorrect entry and create a corrected one

Reconciliation History​

View past reconciliations:

  1. Navigate to Banking > Bank Accounts
  2. Select an account
  3. View reconciliation history with dates, ending balances, and who completed each one
⚠ī¸Once a reconciliation is completed, the cleared transactions are locked. If you need to change a cleared transaction, you'll need to create an adjusting entry in the current period.

Month-End Close Checklist​

Books provides a guided month-end close workflow with seven steps:

StepTaskDescription
1Bank ReconciliationReconcile all bank accounts to statements
2AR Aging ReviewReview outstanding invoices and follow up on overdue
3AP Aging ReviewReview outstanding bills and schedule payments
4Adjusting EntriesPost accruals, deferrals, and corrections
5Trial BalanceReview trial balance for unexpected balances
6Financial StatementsGenerate and review P&L, balance sheet, cash flow
7Lock PeriodSoft-lock or hard-lock the accounting period

Access the close checklist from Accounting Periods — select the period and click Close Checklist.

Period Locking​

After completing the month-end close:

  1. Navigate to Accounting Periods
  2. Select the period
  3. Choose Soft Lock (warnings on new entries) or Hard Lock (no new entries allowed)
  4. Only admins can unlock a locked period
💡Soft-lock periods after the initial close. Hard-lock only after the final review is complete and any audit adjustments are posted.

Next Steps​