Bank reconciliation: a reliable monthly method

A step-by-step BRS routine: match by amount/date/reference, clear timing differences, and investigate true differences, with tips for UPI and card settlements.

1. Get the statement in Excel/CSV for the full month, starting from the last reconciled balance.
2. Enter bank dates for matched entries in books (TallyPrime supports bank reconciliation from the bank ledger and can auto-reconcile from supported statement formats).
3. Timing differences: cheques issued but not presented, deposits in transit. List them with dates; they should clear next month.
4. Items in bank, not in books: bank charges, interest, direct receipts, auto-debits (EMI, GST/TDS challans). Book them with evidence.
5. UPI/card settlements: settlements arrive net of MDR/charges and in batches. Book gross sales, charges and net settlement separately, using the acquirer's settlement report.
6. Finish with zero unexplained difference. Items older than 90 days need follow-up, not carry-forward.