Bank Reconciliation

Last updated

Overview

Bank Reconciliation compares the transactions recorded in Efimis against your bank statement to confirm that all receipts and payments have been processed correctly.

The reconciliation process is the same for both Office and Client/Trust bank accounts.

Bank statement transactions can be added using:

Manual statement entry
Open Banking transactions, where Open Banking is enabled
Imported bank statement files

Once statement entries have been imported or entered, Efimis assists with matching transactions before the reconciliation is finalised.

The options available may depend on the user’s permissions, account setup and whether Open Banking is enabled for the account.

Opening a Bank Reconciliation

To begin a reconciliation:

Navigate to Banking.
Select the required Office Cash Account or Client/Trust Cash Account, then select Reconciliation from the account actions.

Adding Bank Statement Entries

Bank statement transactions must exist before they can be matched.

You can add statement entries in one of three ways.

Method	Description
Manual Entry	Enter individual bank statement transactions manually.
Open Banking	Retrieve transactions automatically using an active bank feed.
Import File	Import transactions from a supported bank statement file.

Some entry methods may not be available for every account. For example, file import can be disabled for certain accounts, and Open Banking only appears where it has been enabled.

Entering Statement Entries Manually

Bank statement transactions can be entered manually from the Bank Statements screen.

Step	Action
1	Open Bank Statements
2	Select Add Entry
3	Enter the Statement Date
4	Enter the Bank Reference, if applicable
5	Enter a Memo describing the transaction
6	Enter the Amount
7	Select Save or Save & New

Using Open Banking

Where Open Banking is enabled, users can download the latest available bank transactions from the Bank Statements screen.

Open Bank Statements.
Select Download Open Banking Transactions.

Downloaded transactions are added to the bank statement ready for matching.

Importing a Bank Statement

The AI bank statement import uses AI to read transaction information displayed in PDF and spreadsheet statements. It supports PDF, CSV, XLSX, XLS and XLSM files and extracts information such as transaction dates, descriptions, references and debit or credit amounts where available.

Always review the information extracted by AI before importing it. Bank-specific statement formats may also be available.

To import a statement:

Step	Action
1	Open Bank Statements for the required bank account.
2	Select Actions → Import.
3	In the Import Statement window, select the required File type. For PDF, CSV, XLSX, XLS or XLSM files, select AI bank statement import (PDF, CSV, XLSX, XLS, XLSM).
4	Upload or drag and drop the statement file.
5	Efimis processes the file and prepares the transactions for review. Processing may take a moment and must finish before the statement can be imported.
6	Review the entries marked Ready for import, together with any errors or warnings.
7	Check the New Statement Balance and compare it with the closing balance on the bank statement.
8	Select Import. Only entries marked Ready for import are imported.

Errors and Warnings

An error means that Efimis cannot import a particular transaction. This may happen when:

Required transaction information is missing or cannot be read reliably.
The transaction has already been imported.
The transaction is dated before the last reconciled statement date.

Entries containing errors are listed separately and are not imported. If the remaining entries are correct, you can continue and import those marked Ready for import.

A warning identifies something that may need checking but does not automatically prevent the valid entries from being imported.

For example, Efimis may display a warning when:

The first transaction date is on or before an existing bank entry.
The opening balance in the file does not match the account balance before the first imported transaction.

Review all warnings before continuing to ensure that the correct statement period and transactions are being imported.

New Statement Balance

The New Statement Balance is the closing statement balance Efimis expects after applying the valid imported transactions.

Efimis calculates it using the existing statement balance, plus the receipts and less the payments marked Ready for import.

Compare this figure with the closing balance shown on the bank statement. If the balances do not agree, review the extracted transactions, errors and warnings before importing the statement.

For spreadsheet files, Efimis reads displayed values only. Hidden worksheets are ignored, and formulas or macros are not run.

After import, the transactions are created with an Unmatched status until they are reconciled.

Matching Transactions

Efimis compares bank statement entries with cashbook transactions and suggests possible matches.

The reconciliation workspace contains three tabs.

Tab	Purpose
Suggested	Displays transactions Efimis believes should be matched.
Unmatched	Displays transactions that still require matching.
Matched	Displays transactions that have already been matched.

To complete matching:

Review suggested matches.

If more than one cashbook transaction could be a match, select Other Suggestions to review the alternatives. Each suggestion displays the Pay To or Received From entity, together with the transaction date and amount, to help you select the correct match.

Select the Match (✓) button to confirm a suggested match.

Select Dismiss Suggestions if the suggested match is incorrect.
Continue until all required transactions have been matched.

Matched transactions appear in the Matched tab.

Selecting Unmatch removes an existing match.

Reconciling the Account

The reconciliation screen shows balances including Bank Balance, Unposted Balance, Unreconciled Balance, Cashbook Balance and Variance.

Once transactions have been matched:

Step	Action
1	Select Start Reconciliation.
2	Enter the Statement Date.
3	Review the reconciliation balances.
4	Review the Variance and investigate any unexplained difference before completing the reconciliation.
5	Select Reconcile to complete the reconciliation.

After reconciliation:

A Bank Reconciliation Report is produced.
Optional reconciliation comments can be recorded.
Additional cashbook transactions can be posted if required.

Reversed Cashbook Transactions

When an unmatched and unreconciled cashbook transaction is reversed, Efimis automatically matches the original transaction with its reversal. The pair appears in the Matched tab and is not treated as two outstanding reconciliation items.

Scenario	What happens
The reversal date falls within the reconciliation period	The original transaction and its reversal remain together in the Matched tab.
The reversal is dated after the current reconciliation date	The pair is shown as a future match. The original transaction may remain visible but greyed out in Unmatched until the reversal date is reached.
The reversal pair is manually unmatched	The original transaction and its reversal return to Unmatched as separate entries. They are not automatically matched again and must be reviewed or matched manually.
The original transaction was already matched to a bank statement entry	The existing bank statement match remains in place. The reversal appears separately in Unmatched.

Reversed transactions display a Reversed indicator to help distinguish them from standard cashbook transactions.

Undoing or Reprinting a Reconciliation

Previous reconciliations remain available for review.

Action	Result
Undo Reconciliation	Reopens the reconciliation and restores outstanding items.
Print	Reprints the reconciliation report.

To access reconciliation history:

Open Reconciliation.
Select View Reconciliation History from the reconciliation settings/action area.
Select Undo and confirm when prompted, or select Print to produce the reconciliation report.

Key Behaviour

Scenario	Behaviour
Office and Client/Trust accounts	Use the same reconciliation process.
Manual statement entry	Available.
Open Banking	Available only where Open Banking is enabled for the account.
Bank file import	Available where the user has the required permission and file importing is enabled for the account. AI statement import supports PDF, CSV, XLSX, XLS and XLSM files.
Suggested matches	Generated automatically where possible.
Manual unmatch	Removes the existing transaction match.
Cashbook reversal created	Automatically matched to the original only where the original is still unmatched and unreconciled.
Future-dated reversal	May appear under Future Matches until it falls within the reconciliation period.
Reconciliation completed	Generates a reconciliation report.
Reconciliation undone	Restores the previous reconciliation state, including reversal matching.
Matched transaction removed	Use Unmatch to remove the match.

Best Practices

Reconcile bank accounts regularly.
Review all suggested matches before selecting Match.
Investigate any unexplained Variance before completing the reconciliation.
Select the file type that matches the statement being imported and review all extracted transactions before completing the import.
Investigate unmatched transactions before completing the reconciliation.
Allow automatically matched reversal pairs to remain matched unless there is a genuine reconciliation issue.
Record reconciliation comments where follow-up is required.
Review the reconciliation report after each completed reconciliation.