Banking & FinanceFinanceReconciliation

Daily Bank Reconciliation Automation with Exception Handling

This workflow eliminates manual bank reconciliation by automating matching, exception detection, and issue resolution. Cash position visibility is updated automatically daily, and bank discrepancies surface immediately.

AI operates via

Email AutomationCRM Sync

Deploy This Template

How It Works

01
Bank Statement Ingestion & Transaction Parsing
AI polls connected bank accounts daily (via API or file upload). Extracts transaction date, amount, reference, counterparty, and transaction type (debit/credit, fee, interest). Normalises amount formats and currency.
02
Automatic ERP Matching
AI queries ERP for all payments posted in prior 5 days. Matches bank transactions against ERP payment records using: (a) exact amount + date, (b) exact amount + close date (tolerance 2 days), (c) fuzzy amount + reference (tolerance 0.5% for rounding/fees).
03
Unmatched Exception Categorisation
For unmatched bank transactions, AI categorises: (a) In-flight (posted to ERP but not yet cleared bank), (b) Timing (bank clearing delay, e.g., cheques), (c) Error (possible duplicate, reversed transaction, or unknown payment), (d) Fee (bank fee or interest charge).
04
Automated Clarification Requests
For exceptions requiring investigation: (a) In-flight items = automatic resolve after 5 days; (b) Timing items = flagged for next day recon; (c) Errors = email to Cash Manager with transaction details, photo of cheque/payment auth if available, requesting explanation within 24h; (d) Fees = auto-code to bank fee GL account.
05
Reconciliation Report Generation & Cash Visibility
Once all matched or explained, AI produces daily reconciliation report: (a) opening balance, (b) total deposits, (c) total withdrawals, (d) closing balance (matches bank statement), (e) exceptions summary, (f) days since last full match. Posts to finance dashboard and CFO inbox.

See How It Works

The AI Employee executes each step autonomously - no human intervention required unless explicitly configured.

Bank Statement Ingestion & Transaction Parsing

Automatic ERP Matching

Unmatched Exception Categorisation

Automated Clarification Requests

Reconciliation Report Generation & Cash Visibility

Step 01

Bank Statement Ingestion & Transaction Parsing

AI polls connected bank accounts daily (via API or file upload). Extracts transaction date, amount, reference, counterparty, and transaction type (debit/credit, fee, interest). Normalises amount formats and currency.

Step 02

Automatic ERP Matching

AI queries ERP for all payments posted in prior 5 days. Matches bank transactions against ERP payment records using: (a) exact amount + date, (b) exact amount + close date (tolerance 2 days), (c) fuzzy amount + reference (tolerance 0.5% for rounding/fees).

Step 03

Unmatched Exception Categorisation

For unmatched bank transactions, AI categorises: (a) In-flight (posted to ERP but not yet cleared bank), (b) Timing (bank clearing delay, e.g., cheques), (c) Error (possible duplicate, reversed transaction, or unknown payment), (d) Fee (bank fee or interest charge).

Step 04

Automated Clarification Requests

For exceptions requiring investigation: (a) In-flight items = automatic resolve after 5 days; (b) Timing items = flagged for next day recon; (c) Errors = email to Cash Manager with transaction details, photo of cheque/payment auth if available, requesting explanation within 24h; (d) Fees = auto-code to bank fee GL account.

Step 05

Reconciliation Report Generation & Cash Visibility

Once all matched or explained, AI produces daily reconciliation report: (a) opening balance, (b) total deposits, (c) total withdrawals, (d) closing balance (matches bank statement), (e) exceptions summary, (f) days since last full match. Posts to finance dashboard and CFO inbox.

Key Results

Manual Recon Effort

100%

Daily Recon Completion Rate

Time to Exception Resolution

99.97%

Recon Accuracy

Frequently Asked Questions

How does the system handle cheques that take 3–5 days to clear?

AI classifies cheques as 'in-flight' based on issue date vs. bank statement date. System tracks cheques separately and automatically resolves them once cleared, typically within 5 days.

What if a payment is reversed or voided in ERP after posting?

AI detects reversal in ERP (negative amount entry). If corresponding bank reversal not yet visible, flags as 'in-flight reversal'. Once bank clears reversal, matches automatically.

Can the system reconcile multiple bank accounts simultaneously?

Yes. AI can reconcile up to 50+ accounts concurrently, with account-specific matching rules (e.g., stricter tolerance for high-volume accounts, looser for infrequent business accounts).

How does the system handle foreign currency accounts?

AI tracks exchange rate at time of ERP posting. Bank statement amounts converted to home currency using same rate for matching. Any variance due to subsequent FX moves is flagged separately for accounting treatment.

What if there's a persistent unmatched item (e.g., bank error)?

AI escalates unmatched items after 30 days to Cash Manager. If unresolved after 60 days, AI flags for bank dispute process and escalates to CFO with recommendation to file bank claim or conduct root cause audit.