Why Bank Reconciliation Needs AI

Bank reconciliation seems straightforward: match bank transactions to book entries. In practice, it is one of the most time-consuming monthly tasks because of: - Timing differences (checks issued vs. cleared) - Description mismatches (bank descriptions rarely match book descriptions) - Batched deposits (one bank line matches multiple book entries) - Fees and charges recorded by the bank but not yet in the books - Currency conversions and rounding differences

The AI Reconciliation Framework

Step 1: Data Preparation Prepare two clean datasets:

BANK STATEMENT DATA:
Date | Reference | Description | Amount | Running Balance

GENERAL LEDGER DATA (Cash account):
Date | JE Reference | Description | Debit | Credit | Balance