Bank Reconciliation Tool
Overview
Bank Reconciliation Tool – Business Overview
The Bank Reconciliation Tool is used to match your company’s internal financial records with actual transactions recorded by the bank. Its main purpose is to ensure that the cash balances shown in Dafater accurately reflect what is truly available in your bank accounts.
This tool helps finance teams confirm that all receipts, payments, bank charges, and deposits are correctly recorded, reducing errors and strengthening financial control.
Purpose in Business Operations
In daily business operations, payments and receipts are recorded internally when invoices are paid, expenses are processed, or transfers are made. However, banks may process these transactions on different dates, apply fees, or include interest and adjustments.
The Bank Reconciliation Tool allows businesses to: - Compare bank statements with internal records - Identify missing, duplicated, or incorrect entries - Confirm the true bank balance at a given date - Maintain reliable financial statements and cash flow visibility
Prerequisites and Setup Requirements
Before using the Bank Reconciliation Tool, the following should be in place:
- A properly configured bank account in Dafater
- All customer receipts and supplier payments recorded in the system
- Access to the official bank statement for the selected period
- Clear opening balance for the bank account being reconciled
Having accurate and up-to-date transaction entries ensures smoother and faster reconciliation.
Typical Workflow and Business Process Fit
The Bank Reconciliation Tool is usually used at regular intervals, such as weekly or monthly, as part of the finance closing process.
Typical workflow:
1. Select the bank account and reconciliation period
2. Review transactions recorded in Dafater
3. Compare them with the bank statement
4. Match confirmed transactions
5. Identify and address unmatched items (such as bank fees or delayed deposits)
6. Finalize reconciliation to confirm the correct closing balance
This process supports month-end closing, audit preparation, and financial reporting.
Key Business Scenarios Where It Is Essential
The Bank Reconciliation Tool is especially important in the following situations:
- Monthly or quarterly financial closing
- High transaction volume environments
- Cash-intensive businesses
- Audit and compliance reviews
- Identifying bank charges, interest income, or errors
- Detecting fraud, duplicate payments, or missing receipts
Without regular reconciliation, businesses risk relying on inaccurate cash balances.
Important Considerations for Users
- Reconcile bank accounts regularly to avoid large backlogs
- Investigate unmatched transactions promptly
- Ensure all payments and receipts are recorded before reconciliation
- Keep bank statements organized for easy reference
- Use reconciliation as a control mechanism, not just a formality
The Bank Reconciliation Tool is a critical financial control that helps ensure trust in your cash position and supports informed business decisions.
If you need, I can also explain this tool from the perspective of daily accounting staff, finance managers, or auditors.
Basic Information
- Module: Accounts
- Document Type: Other
- Type: Single (Configuration)
Fields
| Field Name | Label | Type | Required | Options | Description |
|---|---|---|---|---|---|
| company | Company | Link | Company | Company whose bank transactions are reconciled in Dafater | |
| bank_account | Bank Account | Link | Bank Account | Bank account selected for reconciliation in Dafater | |
| bankstatementfrom_date | From Date | Date | - | Start date for fetching bank statement transactions | |
| bankstatementto_date | To Date | Date | - | End date for fetching bank statement transactions | |
| fromreferencedate | From Reference Date | Date | - | Start reference date for matching internal transactions | |
| toreferencedate | To Reference Date | Date | - | End reference date for matching internal transactions | |
| filterbyreference_date | Filter by Reference Date | Check | - | Enable reference date based filtering of transactions | |
| account_currency | Account Currency | Link | Currency | Currency used by the selected bank account | |
| accountopeningbalance | Account Opening Balance | Currency | account_currency | Opening balance as per Dafater bank records | |
| bankstatementclosing_balance | Closing Balance | Currency | account_currency | Closing balance as per bank statement | |
| reconciliationtoolcards | reconciliationtoolcards | HTML | - | Summary cards showing reconciliation status and balances | |
| reconciliationtooldt | reconciliationtooldt | HTML | - | Detailed reconciliation table of matched and unmatched entries | |
| nobanktransactions | nobanktransactions | HTML | No Matching... |
Message shown when no matching bank transactions exist |
Permissions
| Role | Read | Write | Create | Delete | Submit | Cancel |
|---|---|---|---|---|---|---|
| System Manager | ✓ | ✓ | ✓ | ✓ |
Related DocTypes
| DocType | Relationship | Module |
|---|---|---|
| Bank Account | Links to | Accounts |
| Company | Links to | Setup |
| Currency | Links to | Geo |