Bank Statement Imports

Automating transaction entry and reconciliation

Importing bank statements saves time, reduces data entry errors, and ensures your financial records match your actual bank activity. The Finance Module provides powerful tools to import, categorize, and reconcile bank transactions automatically.

Benefits of Bank Statement Imports

Time Savings

Eliminate manual data entry of bank transactions, saving hours of bookkeeping time each month. What might take hours manually can be completed in minutes.

Accuracy

Reduce human error by importing transaction data directly from your bank. This ensures your financial records precisely match your actual bank activity.

Completeness

Capture all transactions, including bank fees, interest, and other items that might be overlooked during manual entry. Nothing falls through the cracks.

Efficiency

Intelligent matching algorithms automatically link imported transactions to existing records, streamlining the reconciliation process and reducing duplicate entries.

Import Methods

The Finance Module offers several methods to import bank statement data:

Direct Bank Connection

  1. Go to Finance > Banking > Bank Connections
  2. Click "Add Bank Connection"
  3. Select your bank from the list of supported institutions
  4. Enter your online banking credentials securely
  5. Select which accounts to connect
  6. Configure synchronization settings (automatic or manual)
  7. Click "Connect"

Security Note

The system uses secure, read-only connections to your bank. Your banking credentials are encrypted and never stored in our database. The connection uses the same security standards as online banking.

File Import

  1. Download your bank statement in CSV, OFX, QFX, or MT940 format from your online banking portal
  2. Go to Finance > Banking > Import Statement
  3. Select the bank account to import into
  4. Click "Choose File" and select your downloaded statement file
  5. Select the file format
  6. Map the columns if using CSV format
  7. Click "Import Transactions"

Supported File Formats

  • CSV (Comma Separated Values): Most banks offer this format, but column mapping is usually required
  • OFX/QFX (Open Financial Exchange): Standardized format with transaction categorization data
  • MT940: SWIFT format used by many international banks
  • PDF: Some banks only provide PDF statements, which can be processed with our PDF extraction tool

Manual Entry with Statement Verification

If you prefer to enter transactions manually but still want to verify against your bank statement:

  1. Enter transactions manually throughout the period
  2. At the end of the period, import your bank statement
  3. Use the reconciliation tool to match your entries against the imported statement
  4. Add any missing transactions identified during reconciliation

Processing Imported Transactions

After importing transactions, you'll need to review and categorize them:

Transaction Matching

  1. Go to Finance > Banking > Review Imported Transactions
  2. The system automatically attempts to match imported transactions with existing records
  3. Review suggested matches and confirm or reject them
  4. For unmatched transactions, you can:
    • Match to an existing transaction manually
    • Create a new transaction record
    • Split the transaction into multiple entries if needed

Automatic Matching Criteria

The system uses several factors to suggest matches:

  • Transaction amount (exact match)
  • Transaction date (within a configurable range)
  • Reference numbers or check numbers
  • Description text similarity

Transaction Categorization

For new transactions that don't match existing records:

  1. Select the transaction
  2. Assign the appropriate account category
  3. Add a detailed description
  4. Link to a customer, supplier, or project if applicable
  5. Add any tax information
  6. Save the categorized transaction

Rules-Based Categorization

Create rules to automatically categorize recurring transactions:

  1. Go to Finance > Banking > Categorization Rules
  2. Click "Add Rule"
  3. Set conditions (e.g., description contains "Fabric World")
  4. Set the category (e.g., "Fabric Purchases")
  5. Save the rule

Tip: After creating rules, future imports will automatically apply these categorizations, saving significant time.

Bank Reconciliation with Imported Statements

Imported statements streamline the reconciliation process:

  1. Go to Finance > Banking > Reconciliation
  2. Select the bank account to reconcile
  3. Enter the statement ending date and balance
  4. The system displays all transactions, with imported ones pre-matched
  5. Review and mark transactions as reconciled
  6. Identify and resolve any discrepancies
  7. Complete the reconciliation when the difference is zero

Handling Discrepancies

If your reconciliation doesn't balance:

  • Check for transactions on the statement that aren't in your system
  • Look for transactions in your system that aren't on the statement
  • Verify transaction amounts for data entry errors
  • Check for duplicate entries
  • Confirm the opening and closing balances are correct

Advanced Features

Bank Feeds

Set up automatic daily imports of your bank transactions:

  1. Go to Finance > Banking > Bank Connections
  2. Select your connected bank account
  3. Enable "Automatic Synchronization"
  4. Set the synchronization frequency (daily, weekly)
  5. Configure notification preferences
  6. Save settings

Cash Coding

Quickly categorize multiple similar transactions at once:

  1. Go to Finance > Banking > Cash Coding
  2. Filter transactions by date, amount, or description
  3. Select multiple transactions
  4. Apply the same category to all selected transactions
  5. Save the batch categorization

Bank Rules

Create sophisticated rules for transaction handling:

  • Split Rules: Automatically split transactions from specific vendors into multiple categories
  • Conditional Rules: Apply different categories based on transaction amount or other factors
  • Exclusion Rules: Automatically exclude certain transactions from reports or categorization

Best Practices for Bank Statement Imports

  • Regular Imports: Import statements at least weekly to keep your financial data current
  • Consistent Categorization: Create and maintain rules for consistent transaction categorization
  • Review Before Finalizing: Always review automatically categorized transactions before finalizing them
  • Monthly Reconciliation: Perform a full reconciliation at least monthly to catch any issues
  • Document Special Transactions: Add notes to unusual transactions for future reference
  • Backup Original Statements: Keep copies of original bank statements for audit purposes

Real-World Example

"Mohammed runs a tailoring business with multiple bank accounts. Previously, his bookkeeper spent nearly two full days each month manually entering bank transactions and reconciling accounts. After implementing bank statement imports, the process now takes just a few hours. Mohammed set up a direct connection to his business checking account, which automatically imports transactions daily. For his business savings and credit card accounts, he downloads monthly statements and imports them using the file import feature. He created categorization rules for common transactions—rent payments automatically categorize as 'Rent Expense,' fabric supplier payments go to 'Material Purchases,' and so on. When reviewing imported transactions, Mohammed only needs to categorize unusual or new vendors, saving significant time. During monthly reconciliation, most transactions are already matched, making the process much faster and more accurate. This automation has not only saved time but also improved financial reporting accuracy, allowing Mohammed to make better business decisions based on up-to-date financial information."

Expense ClaimsTax Management