How to Connect Your Bank Account for Automatic Reconciliation

What automatic bank reconciliation means

Bank reconciliation matches the transactions shown on your bank statement with the invoices and expense records in your accounting system. When a connection is active, incoming payments can be linked to open sales invoices and outgoing payments can be suggested against purchase invoices or expense entries.

Setting up the bank connection

1. Check the regulated data provider – Ask which provider connects to your bank, what permissions it requests and how consent is renewed.
2. Review the requested access – Complete authorization through your bank and confirm whether the connection is read-only before approving it. Never assume payment rights are excluded without checking.
3. Configure the feed – Choose the accounts you want to import and set the update frequency (daily is common). The software will then pull new transactions automatically.

How the matching works

• Amount and structured reference – The system looks for identical amounts and any structured reference (e.g., “+++026/0023/00001+++) that you may have added to your invoices.
• Automatic matches – When a payment arrives with the same amount and reference as an open invoice, the software proposes a match.
• Suggested matches for expenses – Outgoing payments are displayed alongside open supplier invoices or expense items, allowing a quick confirmation.

Daily or weekly workflow

1. Open the reconciliation screen in your software.
2. Review the automatically proposed matches.
3. Confirm each match with a single click.
4. For transactions without a perfect match (e.g., missing reference, partial payment), manually select the appropriate invoice or expense and confirm.

After confirming you can instantly see:

• Which sales invoices are paid or still open
• Overdue invoices that may need a reminder
• Which supplier invoices have been settled

Practical benefits

• Up‑to‑date receivables – Real‑time visibility of outstanding customer balances.
• Improved cash‑flow monitoring – Quick identification of overdue payments and upcoming outflows.
• Reduced manual effort – No need to scroll through bank statements and cross‑reference each line manually.
• Cleaner bookkeeping – Reviewed transaction matches give your accountant a clearer starting point for period-end checks.

Security and control

Security depends on the provider and the consent you grant. Before connecting an account, verify whether access is read-only, where credentials and tokens are handled, how access can be revoked and what happens to imported data afterwards. Recheck these points whenever the bank asks you to renew consent.

Which banks are supported?

Coverage differs by provider and account type. Verify your exact bank and business account during the trial, including how frequently transactions arrive and how the connection behaves after consent expires.

Practical checklist before you start

• Confirm that your accounting software supports a PSD2‑compliant data provider.
• Ensure the structured reference field is available on your invoices (optional but improves matching).
• Identify any suppliers or customers who regularly pay without a reference and decide how you will handle those manually.
• Test the connection with a small number of recent transactions before relying on it for full‑month reconciliation.

Following these steps will help you set up a reliable, secure bank feed that automates much of the reconciliation work and gives you a clearer picture of your company’s financial health.