Receivables reconciliation
Match bank deposits to invoices and reconcile invoices and payments
One deposit of $4,180 that pays three invoices. A processor payout that covers a week of sales. Upload the bank statement and your list of invoice payments, and BankReconciler finds which invoices sit behind each deposit.
No bank login. Exports from QuickBooks, Xero, NetSuite or Excel.
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Match my depositsThe short answer
To match bank deposits to invoices, pair each deposit with the customer payments that add up to it exactly, within a few days of the deposit date. Most deposits match one payment. The rest are batches, and software that tests combinations of payments finds them in seconds instead of an afternoon with a calculator.
Deposit 03/12
Grouped match
| Date | Line | Amount |
|---|---|---|
| 03/12 | Bank deposit | 4,180.00 |
| 03/10 | Payment, invoice 1042Harbor Dental | 1,250.00 |
| 03/11 | Payment, invoice 1047Pine Street Cafe | 2,180.00 |
| 03/11 | Payment, invoice 1051Lakeside Realty | 750.00 |
Why bank deposits rarely line up with invoices one to one
Checks deposited in a batch
Five customer checks taken to the bank on Friday show up as one deposit line. The statement never lists the invoices.
Processor payouts
Card and ACH processors pay out several customer payments at once, often two business days later and net of fees.
Short and partial payments
A customer pays $1,180 on a $1,200 invoice, or splits one invoice into two wires. Exact amount matching misses both.
Dates that drift
The payment is recorded the day it arrives, the bank credits it days later. Month end splits the pair across two statements.
How to match bank deposits to invoices with BankReconciler
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1 Download the bank statement
Any format your bank offers works: PDF, CSV, XLSX, OFX, QFX, QBO, MT940 or CAMT.053. Scanned PDFs are read on paid plans.
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2 Export your invoice payments
You need one row per customer payment with date, amount and invoice number. In QuickBooks Online the Invoices and Received Payments report gives that, in Xero the Receivable Invoice Detail report, and a spreadsheet of paid invoices works as it is.
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3 Let the matching passes run
Exact amount and invoice reference first, then the same amount within a date window (5 days by default, adjustable). For every deposit still open, the grouping pass tests up to 14 nearby payments and pairs the set that adds up to the cent.
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4 Review only the exceptions
You see three short lists: deposits with no invoice behind them, near matches with a small difference such as a processor fee, and payments that never reached the bank. Export the result as PDF and XLSX.
What deposit to invoice matching gives you
Grouped matches
One deposit, many invoices
Batches of checks and multi-invoice payments are paired as a group when the amounts add up exactly. It also works the other way, when one invoice was paid in two deposits.
Saved rules
Processor payouts learned once
Tell it that a payout description belongs to grouped sales receipts, and next month it groups them for you, with a wider 7 day window.
Near matches
Fees and short pays flagged
A deposit a few dollars under the payment shows as a near match with the difference, so you post the fee instead of hunting for it.
Open receivables
Payments that never arrived
A payment marked received in the books with no deposit on the statement is listed on its own. That is a bounced check or a payment applied to the wrong customer.
Duplicates
Payments recorded twice
The same payment entered by hand and again from a bank feed is caught as a duplicate, before it inflates revenue.
Audit trail
A report your CPA accepts
Every match, every exception and the adjusting entries in one PDF and XLSX bank reconciliation report with preparer and timestamp.
Who uses it
Service businesses that invoice
Agencies, contractors, clinics and wholesalers with 50 to 500 invoices a month, paid by check, ACH and card. The owner or office manager wants to know which customers actually paid.
Bookkeepers closing the month
Batched deposits are the slowest part of a client close. On the Business and Firm plans each client gets its own workspace, see bank reconciliation for accountants.
Teams cleaning up receivables
An aged receivables report full of invoices that were really paid. Matching a few months of deposits shows which ones to close and which to chase.
Three ways to match deposits to invoices
| Approach | Batched deposits | Works across months | Exceptions list | Best when |
|---|---|---|---|---|
| Find match in QuickBooks or Xero | You tick each payment by hand | One feed line at a time | No | A few deposits a week, each paying one invoice |
| Spreadsheet with SUMIF and a calculator | Trial and error on combinations | Yes, if you build it | Whatever you build | One time cleanup of a short period |
| BankReconciler | Found automatically when the sum is exact | Yes, open items carry forward | Unmatched, near matches, duplicates | Dozens of deposits a month or several clients |
If you work inside QuickBooks, the matched list tells you exactly which payments to select in the deposit or Find match screen, so the books end up grouped the same way the bank did it. More on that workflow on bank reconciliation for QuickBooks. Plans start at $49 a month, see pricing.
Deposit and invoice matching questions
How do I match a deposit to multiple invoices?
Find the invoice payments received in the days before the deposit whose amounts add up exactly to the deposit total. By hand that means testing combinations. BankReconciler does the search for you: for each unmatched deposit it looks at up to 14 nearby payments and pairs the combination that sums to the cent.
How do you reconcile invoices and payments?
Compare every payment the bank received with the invoice it settles, by amount, date and invoice or reference number. Payments that match close the invoice. Deposits with no invoice behind them need a sales receipt or a correction, and invoices with no deposit are still open receivables to chase.
Why does my bank deposit not match my invoices?
Usually the deposit is a batch of several payments, a card processor payout net of fees, or a short payment. A deposit can also land a few days after the payment date, sometimes in the next month. Grouped matching and a date window find most of these, and fees show up as a small difference on a near match.
Is invoice reconciliation the same as bank reconciliation?
Not quite. Bank reconciliation proves the bank account in your books agrees with the statement. Matching deposits to invoices is the receivables part of that job, and for a business that invoices customers it is where most of the time goes. Matching vendor bills to purchase orders is a different, accounts payable task.
Do I need to connect my bank account?
No. You upload the statement your bank already gives you and an export of your invoice payments. There is no bank login to share. Every accepted file type is listed on supported formats.
Know which invoices every deposit paid
Upload last month's statement and your payments export. The batches sort themselves out.