Bank Reconciliation in TallyPrime: A Simple Monthly Routine
Reconcile your bank accounts in TallyPrime every month, manually or with an imported statement, and clear differences before they pile up.
Bank reconciliation in TallyPrime confirms that what your books say about the bank matches what the bank says. It catches missed entries, duplicate entries, bank charges you never booked and cheques that never cleared. This guide covers both manual and automatic reconciliation and gives a simple monthly routine.
Before you start
- Have the bank statement for the month (PDF for manual, or Excel, MT940 or CSV for import).
- Make sure instrument numbers and dates are recorded in bank allocations. Our guide to cheque numbers in Tally ledgers explains why this matters.
- Note last month's reconciled closing balance, so you know where to start.
Method 1: Manual bank reconciliation
- Go to Gateway of Tally > Banking > Bank Reconciliation and select the bank.
- Set the period to the statement month.
- For each transaction on the bank statement, find the matching voucher and enter the bank date, the date it appears on the statement. Use Alt+R (Manual Recon) where your release shows it.
- Leave the bank date empty for items not on the statement, such as cheques issued but not yet presented.
- Check the reconciled balance against the statement's closing balance.
Method 2: Auto reconciliation with an imported statement
TallyPrime can reconcile automatically: configure the bank ledger for auto reconciliation, then import the statement in Excel, MT940 or CSV format. TallyPrime matches exact entries and shows potential matches based on instrument date, amount and party for you to confirm. Tally's guide to setting up bank reconciliation in TallyPrime walks through the configuration.
If you also want to create vouchers from statement lines, for example bank charges and interest, see our bank statement to Tally workflow and the related guide to importing HDFC, SBI and ICICI statements.
Investigating differences
| Difference | Likely cause | Action |
|---|---|---|
| On the statement, not in books | Bank charges, interest, direct credits | Record the voucher |
| In books, not on the statement | Uncleared cheques, entries in the wrong bank ledger | Leave if timing; correct if the wrong bank |
| Same item, different amount | Typing error | Correct the voucher |
| Item appears twice in books | Duplicate entry | Remove the duplicate after checking with the person who entered it |
A simple monthly routine
- Download statements for every bank account in the first week of the month.
- Reconcile each account, oldest open item first.
- Record missing charges and interest the same day.
- Follow up cheques that have been uncleared for more than a few weeks.
- Note the reconciled balance and the date you finished.
Bank reconciliation is one item on a bigger list. A later guide in this series pulls it together with GST, receivables and stock into a full month-end closing checklist.
Frequently asked questions
Where is bank reconciliation in TallyPrime?
Go to Gateway of Tally > Banking > Bank Reconciliation and select the bank. You can reconcile manually by entering bank dates, or set up the bank ledger for automatic reconciliation with an imported statement.
Which bank statement formats can TallyPrime import for reconciliation?
TallyPrime can import bank statements in Excel, MT940 or CSV formats for auto reconciliation, once the bank ledger is configured for it.
How often should I reconcile the bank in Tally?
At least monthly, and weekly for busy accounts. Small, regular reconciliations are far easier than finding a three-month-old difference.