How to Match Bank Statements to General Ledger (GL) and Payment Records

Gather All Necessary Data

a. Bank Statement

• Obtain the bank statement for the period (monthly/weekly/daily depending on your reconciliation cycle).

• Include all deposits, withdrawals, bank fees, interest, etc.

b. GL and Payment Records

• Extract relevant data from the General Ledger (Cash Account).

• Include payment records from:

  • Accounts Payable (outgoing payments)

  • Accounts Receivable (incoming payments)

  • Payroll

  • Treasury transfers

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2. Load Data into a Reconciliation Tool or Template

Use an ERP system (SAP, Oracle, etc.) or a standard Excel template with the following columns:

Bank Transaction	Date	Amount	Description	GL Entry	Match Status

Many organizations also use Bank Reconciliation Software or RPA tools to automate this.

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3. Match Payments Manually or Automatically

a. Direct Matches

• Match entries by:

  • Amount

  • Transaction Date

  • Reference or check number

Example:

Bank shows a debit of $5,000 on Aug 3. GL shows a vendor payment of $5,000 on Aug 2. → Match.

b. Grouped Transactions

• Match multiple small GL entries to a single bank transaction (e.g., batched payments or deposits).

• Match a single GL entry split across multiple bank transactions (e.g., partial payments).

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4. Investigate Unmatched Items

Common causes:

• Timing differences (e.g., bank shows payment a day later).

• Bank fees or interest not recorded in GL.

• Errors in payment amounts or duplicate entries.

• Outstanding checks or unpresented deposits.

• Fraudulent or unauthorized transactions.

Resolution steps:

• Post missing entries (e.g., bank fees).

• Adjust incorrect GL entries.

• Follow up with AP/AR teams on pending transactions.

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5. Post Adjustments or Journal Entries

After resolving discrepancies:

• Record adjusting journal entries to reflect:

  • Bank charges

  • Interest income

  • Corrections to erroneous entries

• Tag them clearly with documentation and references.

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6. Review & Approve

• Have a second-level review by a senior accountant or controller.

• Document evidence of reconciliation (PDFs of bank statements, screenshots, notes).

• Approve and sign off in accordance with company policy or internal controls (e.g., SOX compliance).

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7. Finalize & Archive

• Lock the reconciliation period in your ERP or reconciliation tool.

• Archive supporting documents for audit readiness.

• Ensure the bank balance matches the GL cash account after reconciliation