Bank Statement Reconciliation Process in Tally | Parsify

Bank reconciliation is a critical accounting process that ensures your company's financial records align with the bank's records. In Tally Prime, the Bank Reconciliation Statement (BRS) feature simplifies identifying discrepancies like uncashed checks, bank fees, or missing deposits.

The Standard Reconciliation Workflow

Traditionally, the process involves comparing your physical or PDF bank statement against your Tally ledger line by line:

Open BRS: Go to Gateway of Tally > Banking > Bank Reconciliation and select the bank ledger.
Verify Transactions: Cross-check each entry in Tally with the bank statement.
Enter Bank Dates: For matching transactions, enter the clearing date in the 'Bank Date' column in Tally.
Identify Discrepancies: Investigate entries present in the bank statement but missing in Tally (like bank charges or direct deposits) and pass the necessary journal entries.

Automating the Process with Auto Reconciliation

Tally Prime offers an "Auto Bank Reconciliation" feature that dramatically reduces the time spent on this process.

First, convert your PDF bank statement into an Excel format using a tool like Parsify.
Import the Excel file directly into the Bank Reconciliation screen in Tally.
Tally will automatically match transactions based on amount, date, and instrument number.
You only need to manually review the "Unreconciled" transactions, which usually account for less than 5% of the total entries.

Best Practices

To maintain healthy financials, perform bank reconciliations at least monthly. With automated tools, many businesses have moved to weekly or even daily reconciliations, ensuring real-time visibility into cash flow.