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Bank Reconciliation in Light

Learn how bank reconciliation works in Light. Connect bank accounts, match bank transactions to ledger activity, use auto-matching, and ensure balances fully reconcile to zero.

Overview

Bank Reconciliation in Light is where actual bank movements are matched to ledger activity.

  • Left panel = what the bank actually did
  • Right panel (Open) = invoices to reconcile against
  • Right panel (Closed) = journals posted to the bank account to reconcile against

Your goal = link each bank line to its accounting source

→ until 0 unallocated remain.

Connecting Bank Accounts

Go to:

Settings → Integrations → Bank Accounts

Supported connection types:

| | Method Description | | --- | --- | | Direct bank through "GoCardless" or "Plaid" | Connect your actual bank account → Light streams transactions automatically |

Note: a bank connection is not the same as the Chart of Accounts.

Each bank account must exist as an entity bank account in Settings.

Bank rec 1

Where bank feeds land

Accounting → Bank Reconciliation

Each line includes:

  • date

  • reference

  • amount

    Bank rec 2

How matching works

Select a bank line on the left → Light surfaces candidate matches on the right:

| | Section Meaning | | --- | --- | | Open Transactions | unpaid items (Bills, Reimbursements, Cards, AR receipts) | | Closed Transactions | posted journals / allocations already in GL coded to this bank account |

Click Match to complete the link.

Auto-matching (AI)

Light learns from repetition:

  • references
  • counterparty names
  • typical amount patterns

If Light believes it knows the match → a match suggestion is surfaced.

You can accept or override at any time.

Reconciliation status

The header shows real-time progress:

  • auto-matched count
  • to allocate count
  • posted from bank count

Target state = 0 to allocate

Only when this is zero → your bank balance in Light ties to the bank’s real-world balance.

Balances

Once banks are connected you can view:

  • actual bank balance
  • cleared GL balance
  • difference (unreconciled)

This aligns once reconciliation = complete.

Key behavior notes

  • reconciliation is per bank account per entity
  • missing periods can be filled via file upload
  • reconnect / refresh can be done any time
  • matching creates the audit chain between bank reality + accounting ledger