Your bank balance in Tally rarely equals the balance on the bank statement on any given day — cheques issued but not yet cleared, deposits not yet credited, bank charges you have not entered. Bank reconciliation matches the two and explains every difference.
In this article
1. Open the reconciliation screen
Gateway → Banking → Bank Reconciliation → select the bank ledger. You see every transaction with a Bank Date column.
2. Enter bank dates
Tick off each entry against the statement by typing the date it appeared on the statement in the Bank Date column. Entries with a bank date are reconciled.
3. Read the bottom panel
| Line | Meaning |
|---|---|
| Balance as per Company Books | Your Tally balance |
| Amounts not reflected in Bank | Cheques issued/deposited but not yet cleared |
| Amounts not reflected in Company Books | On the statement but not in Tally — bank charges, interest, direct credits |
| Balance as per Bank | Should equal the statement balance |
4. Fix the differences
- Record bank charges and interest with payment/receipt vouchers.
- Follow up on cheques pending for more than a few weeks.
- Investigate any direct credit you cannot identify — it may be a customer payment without reference.
Doing it in Excel instead?
Export the bank book (Alt+E) and the bank statement to Excel and match on amount and date with the lookup techniques in the reconciliation guide — the same key-matching idea works for banks.
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