Bank Reconciled with Tally How to Get Your Bank Reconciled

The Pain Point Every Business Owner Faces so Use Bank Reconciled with Tally

You’ve been disciplined. Bank Reconciled with Tally, Every cheque issued, every deposit made, every bank charge—you’ve manually entered them into TallyPrime. Your books are updated, but there’s always that nagging doubt: “Does what I’ve entered match what’s actually in my bank account?”

Bank Reconciled with Tally, Now you’ve discovered TallyPrime 7.0’s Bank Connected Services. The promise is tempting: automated bank feeds, real-time matching, no more manual statement downloads. But the transition feels daunting. How do you bridge your months (or years) of manual entries with this new automated system? How do you identify which transactions are already in Tally and which are still pending from the bank?

This comprehensive guide will walk you through exactly how to get your bank reconciled with Tally, transforming your accounting from a chore of data entry into a streamlined process of verification and control.

Understanding the Reconciliation Mindset with Bank Reconciled with Tally

What Does “Bank Reconciled with Tally” Really Mean?

When we say your Bank Reconciled with Tally, we mean there’s perfect harmony between two records:

Your Tally Bank Ledger: Your manual entries based on transactions you initiated
Your Official Bank Statement: The bank’s record of what actually cleared

Reconciliation isn’t about finding mistakes (though it does that too)—it’s about achieving financial clarity. It’s the process that answers: “Can I trust the bank balance I see in Tally when making business decisions?”

The Three States of Every Transaction

As you begin getting your Bank Reconciled with Tally, you’ll discover every transaction falls into one of three categories:

Matched: Already in Tally AND appears on bank statement (perfect alignment)
Pending: In Tally but NOT yet on bank statement (cheques not cashed, deposits in transit)
Missing: On bank statement but NOT in Tally (bank charges, direct debits you forgot)

Your primary goal in this transition phase is identifying the first two categories within your existing manual data.

Bank Reconciled with Tally: Setting Yourself Up for Success

Before you click that first “Reconcile” button, complete these essential steps:

1. Verify Bank Connection Status

Navigate to Gateway of Tally > Banking > Bank Connected Services. Confirm your bank account shows as “Active” and fetch statements for your target reconciliation period.

2. Choose Your Battlefield Wisely

Don’t start with the current month! Begin with a closed period from last month or last quarter. This gives you:

A finite set of transactions
Finalized bank data (no pending transactions)
Less pressure while learning the process

3. Gather Your Arsenal

Have ready:

Your manually entered voucher references
Previous bank statements (for verification)
A notepad for tracking discrepancies

The Step-by-Step Process to Get Your Bank Reconciled with Tally

Step 1: Enter the Reconciliation War Room

Go to Gateway of Tally > Display > Account Books > Ledger and select your specific bank account. Press F2 to set your reconciliation period, then press Alt+R to launch the Bank Reconciliation Statement (BRS) screen.

This interface is your command center for getting your bank reconciled with Tally. The screen typically shows:

Left side: Your manually entered Tally vouchers
Right side: Bank statement transactions from connected services
Middle: The reconciliation matching area

Step 2: The Magic Button – F5: Reconcile

Here’s where the real work happens. The F5 key is your primary tool for getting your bank reconciled with Tally.

Scenario A: Identifying What’s Already in Tally (Matched Transactions)

When you see a bank statement transaction that looks familiar:

Place cursor on the bank entry
Press F5
Tally shows possible matching vouchers from your manual entries
Select the correct match
Result: The transaction moves to “Matched” – confirming it’s already in Tally and bank-verified

Scenario B: Identifying What’s Still Pending (Uncleared Transactions)

When you see a manual entry with no bank match:

Search the bank statement side
Find no corresponding transaction
Take NO action with F5
Result: The transaction remains “Uncleared” – your clear indicator it’s pending bank processing

Step 3: Handling the Discoveries

As you work through getting your bank reconciled with Tally, you’ll inevitably find:

Missing Transactions (Bank entries with no Tally voucher):

Use F5 on the bank entry
Select “Create Voucher” when no match appears
Instantly add missing transactions to your books

Discrepancies (Same transaction, different amounts):

Never force a match
Investigate the difference
Correct the original voucher or create adjustment entry
Then reconcile

Pro Techniques for Efficient Reconciliation

1. Bank Reconciled with Tally Master the Search Function

Use Alt+F3 to search by:

Amount (quickly find large transactions)
Narration keywords (“rent,” “invoice #”)
Cheque numbers

2. Bank Reconciled with Tally Sort Smartly

Sort both Tally and bank columns by:

Date (see chronological flow)
Amount (spot matching pairs)
Type (group all payments or receipts)

3. Bank Reconciled with Tally Understand Date Lag

Remember: Banks process transactions 1-3 days after you initiate them. A cheque written on the 1st might clear on the 3rd. When getting your bank reconciled with Tally, allow for this natural delay in your matching.

The “After” Picture: What Success Looks Like

Once you’ve successfully gotten your bank reconciled with Tally for a period, you’ll see:

Clean Reports: The Uncleared Transactions report shows only genuinely pending items
Accurate Balances: “Balance as per Bank” matches your actual bank balance
Confidence: You can trust Tally’s financial reports for decision-making
Time Savings: Future reconciliations take minutes instead of hours

Common Roadblocks and Solutions

“My opening balances don’t match!”

Solution: Do a historical reconciliation to find where the divergence started. You may need to reconcile backward month by month until balances agree.

“I have transactions from 6+ months ago still showing as uncleared!”

Solution: These are likely stale cheques. Follow up with payees. If unredeemable, reverse them via journal voucher to clean your books.

“The auto-reconcile feature didn’t match everything!”

Solution: Auto-reconcile is a helper, not a complete solution. Use it as a first pass, then manually review with F5 for remaining items.

Bank Reconciled with Tally Maintaining Your Newly Reconciled State

Getting your bank reconciled with Tally is just the beginning. To maintain this harmony:

Reconcile Weekly: Make it a Monday morning ritual
Shift Your Workflow: Start creating vouchers FROM bank feeds rather than manual entry
Review Uncleared Reports: Monthly, review and follow up on old pending items
Document Everything: Note any discrepancies and their resolutions

The Transformational Result

The journey from manual entry to having your bank reconciled with Tally via connected services transforms your relationship with your business finances. You move from:

Data Entry Clerk → Financial Manager
Reactive Bookkeeping → Proactive Cash Flow Control
Monthly Anxiety → Daily Confidence

The initial investment of time to reconcile your historical manual data pays dividends in accurate financial reporting, fraud detection, and business decision confidence.

Your Action Plan

This Week: Pick a closed month and complete your first full reconciliation
Next Week: Implement weekly reconciliation as a non-negotiable habit
Next Month: Transition to creating vouchers from bank feeds instead of manual entry
Ongoing: Use your accurate, reconciled data for strategic business decisions

Getting your bank reconciled with Tally isn’t just an accounting task—it’s the foundation of financial clarity in your business. The tools are there in TallyPrime 7.0. The process is straightforward. The only missing piece is your decision to start.

Begin today. Pick a period, open the BRS screen, and press F5. Your first matched transaction is the beginning of a new era of financial control. Your future self—making decisions with complete confidence in your numbers—will thank you.

FAQ: TallyPrime 7.0 Bank Reconciliation – Manual Entries to Connected Services

SECTION 1: PREPARATION & SETUP

Q1: I’ve been entering transactions manually for years. Is connecting my bank still worth it?
A: Absolutely. While manual entry shows discipline, Bank Connected Services automates data flow, reduces errors, provides real-time visibility, and makes reconciliation faster. It transforms your role from data entry clerk to financial manager. The initial reconciliation effort is a one-time investment for long-term accuracy.

Q2: My Tally opening balance doesn’t match my bank’s opening balance. Where do I start?
A: You must first reconcile historically to a point where balances agree. Start with the oldest period possible (perhaps when you opened the account or last fiscal year). You may need to:

Gateway of Tally > Display > Account Books > Ledger > Select your bank.
Use the Alt+R (Reconcile) option for that old period.
Work through uncleared transactions from that era (old cheques that may never clear might need to be written back).
Once that period’s closing balance matches the bank’s, that becomes your new, agreed-upon starting point.

Q3: Can I use Connected Services for multiple bank accounts?
A: Yes. TallyPrime 7.0 allows you to connect multiple current and savings accounts from supported banks. Each account will have its separate ledger and reconciliation process. Navigate to Gateway of Tally > Banking > Bank Connected Services to add and manage all your linked accounts.

Q4: How far back can I fetch bank statements?
A: This depends on your bank’s policy, but TallyPrime typically allows you to fetch data for the past 90-180 days through the connection. For reconciling older manually-entered periods, you may need to manually import a bank statement (CSV/Excel) downloaded from your bank’s portal using the Import Statement feature within the BRS screen.

SECTION 2: THE RECONCILIATION PROCESS

Q5: What’s the difference between ‘Cleared’ and ‘Uncleared’ in Tally?
A: This is the core concept.

Uncleared: A transaction you have entered in Tally (e.g., a cheque issued) that does NOT yet appear on your official bank statement. It is pending bank processing.
Cleared/Reconciled: A transaction that exists in both your Tally ledger and the bank statement. It has been verified and matched.

Q6: When I press F5 (Reconcile), Tally doesn’t show my manual voucher as a match option. Why?
A: Common reasons:

Date Range Mismatch: Your manual voucher is outside the period you’ve set in the BRS screen (F2: Period). Expand your date range.
Amount Difference: Even a one-rupee difference (e.g., bank charges deducted) will prevent auto-suggestion. Check the exact amount.
Already Reconciled: The voucher may have been marked cleared in a previous session.
Posted to Wrong Ledger: You may have accidentally posted the transaction to a “Cash” or “Suspense” account instead of the specific Bank Ledger.

Q7: How do I handle a cheque that I recorded in Tally but the bank cleared for a DIFFERENT amount?
A: Do NOT force a match. This is a critical discrepancy.

Identify the error: Was your entry wrong, or did the bank/recipient make an error?
Correct the original voucher: If you made the mistake, alter the payment voucher in Tally to the correct cleared amount (Gateway of Tally > Display > Account Books > Ledger > find the voucher and alter it).
Create a new voucher for the difference: If it’s a bank charge or other fee, create a separate voucher for the difference (e.g., “Bank Charges – Cheque Difference”).
Then reconcile: Now the amounts match, and you can use F5 to link them.

Q8: I see a transaction in the bank feed for “ATM WDL” that I don’t remember entering. What should I do?
A: This is a classic “Missing in Books” item.

In the BRS screen, place the cursor on that bank transaction.
Press F5: Reconcile.
Since no match will be found, Tally will prompt you to create a voucher.
Create the payment voucher directly from there. It will be posted to your bank ledger and marked as reconciled simultaneously. Ensure you allocate it to the correct head (e.g., “Personal Drawings,” “Petty Cash”).

Q9: What if I issued a cheque 6 months ago, entered it then, and it’s still not showing in the bank feed?
A: This is a long-outstanding “uncleared” transaction.

It will remain in your uncleared list indefinitely until it clears or you action it.
Action: Contact the payee to see if the cheque was lost. If it will never be cashed, you need to reverse it in your books.
To reverse: Create a Journal Voucher crediting your bank account and debiting the original expense account (or a special account like “Stale Cheques Reversed”). This increases your bank balance in Tally and removes the uncleared item. Important: Once reversed, if the old cheque is ever cashed, it will appear as an unaccounted bank debit that you must then handle.

SECTION 3: POST-RECONCILIATION & ONGOING MANAGEMENT

Q10: After reconciling a period, can I edit or undo it?
A: Yes. Reconciliation is not locked forever.

Go back to the BRS screen for that period (Gateway of Tally > Banking > Bank Reconciliation).
You will see the reconciled transactions. You can un-reconcile a specific transaction by placing the cursor on it and pressing Shift+F5 (or selecting the appropriate option from the button bar).
After making changes, reconcile it again.

Q11: Should I delete my old manual entries and only rely on the bank feed?
A: No, do not delete historical manual entries. They are your original accounting record. The goal is to match and reconcile them, not replace them. For future transactions, you can shift your workflow: let the bank feed come in and create vouchers from it, minimizing manual data entry.

Q12: How often should I reconcile?
A: Weekly or Bi-weekly is ideal. Daily if you have high transaction volume. Never wait for the month-end. Frequent, small reconciliations are quick, easy, and prevent a backlog of problems. Set a calendar reminder.

Q13: The ‘Auto-Reconcile’ button didn’t match everything. Is it broken?
A: No. Auto-reconcile uses algorithms (amount, date proximity) to suggest matches. It is conservative by design to avoid errors. It will not match transactions where:

Amounts differ (even slightly).
Dates are far apart.
Narrations are completely dissimilar.
It finds multiple possible matches (needs human judgment). Consider auto-reconcile as a helpful first pass, not a complete solution.

Q14: Where can I find a report of all still-pending (uncleared) transactions?
A: TallyPrime has a dedicated report:
Gateway of Tally > Display > Account Books > Cash/Bank Books > Uncleared Transactions.
Select your bank and date range. This report is crucial for tracking outstanding cheques and uncleared deposits.

Q15: My bank balance in Tally now shows two figures: ‘Balance as per Cash Book’ and ‘Balance as per Bank.’ Which one is correct?
A: After reconciliation, both are “correct” but show different things:

Balance as per Cash Book: This is your Tally ledger balance. It includes ALL transactions you’ve entered, both cleared and uncleared.
Balance as per Bank: This is the effective available balance, calculated as [Cash Book Balance] – [Uncleared Cheques/Debits] + [Uncleared Deposits/Credits]. This should match your actual bank statement balance.
Use the “Balance as per Bank” to understand what funds are truly available for use.

SECTION 4: TROUBLESHOOTING & ADVANCED

Q16: I think I reconciled the same transaction twice (a duplicate). How do I fix this?
A: Identify the duplicate voucher.

Go to the Bank Ledger and look for two similar transactions around the same date/amount.
One will likely be the original manual entry, and the other might be a voucher you created from the bank feed.
Delete the unnecessary one: If the voucher is not locked in a closed period, you can simply alter and delete it. Ensure you are deleting the extra one, not the one tied to your original invoice or support document.

Q17: Can I reconcile cash transactions this way?
A: No. Bank Connected Services and the formal BRS are specifically for bank accounts. Cash reconciliation is a separate, manual process of counting physical cash and matching it to your “Cash Ledger” balance in Tally.

Q18: What if my bank isn’t listed in Tally’s Connected Services?
A: You have two options:

Use the Generic Interface: Some banks offer a “Tally-certified” connection that might work. Check with your bank.
Manual Import: Download your statement in CSV/Excel format from your net banking portal. In the Tally BRS screen, use the Import Statement feature to load and map the data. This gives you an electronic file to work with, even without a live connection.

Q19: Does reconciliation affect my Profit & Loss Statement?
A: Directly, no. P&L is based on the ledger heads (expenses, income) you posted to. However, reconciliation ensures that the bank transactions feeding into those ledgers are complete and accurate. An unreconciled, missing bank charge would mean an understatement of expenses, thus affecting P&L accuracy indirectly.

Q20: I’m stuck and my books don’t balance. What’s my last resort?
A:

Start Fresh for a Period: Use the Mark All As Uncleared option in the BRS for a problematic month and begin the matching process from scratch.
Check Journal Vouchers: Often, adjustments made via Journal Vouchers (JV) are missed. Review all JVs posted to the bank account.
The Nuclear Option (Use with Caution): As a last resort to force the balance, you can create a Reconciliation Difference voucher. Tally allows this to temporarily force the books to match, but this is a band-aid. It creates a suspense entry that MUST be investigated and properly resolved later. Never leave a reconciliation difference unattended.

Final Pro-Tip: The key to stress-free reconciliation is consistency. Adopt a clear workflow (e.g., every Monday morning), use descriptive narrations in vouchers, and always reconcile before generating final monthly reports. TallyPrime’s tools are powerful, but they require your disciplined oversight to unlock their full potential.