Bank Reconciliation: Syncing Transactions, Reconciling Payments, Expenses, and Detaching Records

Learn how to sync your transactions via the Chart of Accounts section and reconcile customer payments, transfers and expenses. You will also see how to detach errors.

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23 steps
3 minutes

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The bank reconciliation is available on the **Advanced** subscription and above only. You will be able to connect **one** bank on the Advanced. If on the **Ultimate**, you will be able to add multiple bank connections.

Syncing Transactions

First, head to Chart of Accounts. This is where you will find all payment accounts and the transactions that have been recorded through them.

Click into your desired payment accounts. Hint: you will only be able to reconcile payments if your account has the GC icon on it - this means it is connected successfully. If you cannot see this, you may need to re-authorise your connection.

Click 'Sync with Your Connected Bank' to sync your transactions.

You will need to choose a 'from' and 'to' date, and click 'SELECT' on each of these. We would recommend only syncing for a short period of time (weeks) - this makes it easier to reconcile your payments. Ideally, payments should be reconciled on a regular basis so that you do not need to sync for larger time periods. If you have already reconciled payments from a certain date, we wouldn't recommend revisiting this date range - only sync from the last point onwards. If you are just starting to use Chart of Accounts, we would not recommend backdating your transactions. For this, simply start from today, with previous payments being recorded manually.

Once in the sync screen, you will be able to view any **unmatched**, **matched** or **ignored** transactions.

You can also toggle between **inbound** and **outbound** payments. You can also expand the 'details' option on the transaction to view further information.

Most banking providers do require re-authentication every 90 days as per Open Banking regulations. If you try to sync and receive a 'GCBank Error', you may need to re-establish the connection by heading to Settings > Invoicing & Payments > Connected Services > \[yourbankprovider\] > Renew \[yourbankprovider\] Connection.

Reconciling Customer Payments

To record a customer payment, you should look in the **unmatched inbound** transactions. Click into the 'Payment Type' drop down menu on the transaction. You will see a few options here, but if this is a customer payment, select 'Customer Payment'.

Over time, you may see some customer suggestions already here, based on previous payments and matches. However, when first using the function, you will need to click 'Select a different customer' and search for the desired customer to select them.

Next, use the 'Allocation Type' drop down menu to choose whether this transaction should be allocated to the **oldest invoice(s)**, **a specific invoice** or as a **tip**.

If you click 'Allocate to a specific invoice', you can click 'CREATE AS NEW PAYMENT' and then select your desired invoice before clicking 'APPLY'. If you choose to allocate to the oldest invoice or as a tip, you can just click 'CREATE AS NEW PAYMENT'.

Reconciling Transfers From Other Payment Accounts

If you want to record a payment that has been transferred in from another payment account, simply click 'Transfer In From' in the Payment Type drop down menu.

Then, simply click the 'Payment Account' option and choose your desired payment account.

Finally, click 'Create Transfer into \[\]' and then 'Done'.

Ignoring Transactions

If you have any transactions that you do not want to record, you can ignore them. To do this, simply click 'Payment Type' > Ignore.

Reconciling Expenses

Click into the 'Out' tab when reconciling expenses so that you only see *outbound* transactions.

Again, click the 'Payment Type' drop down menu and then click 'Expense'. You will also see the option to record a 'Transfer Out To' and a 'Customer Refund'.

Click 'Create as new Expense'.

You will then see a new expense form, with some of the details filled in from the transaction. You will need to enter a 'Reference' and an 'Expense Category'. Simply type your reference and click into the category field to choose from your pre-existing expense categories, or add a new one.

Finally click 'SAVE' to save the expense.

You may be asked to create a matcher template, so that similar transactions can be recognised and repeated. Type the name for the template and click 'SAVE'.

Once created, you will see an option to repeat for similar transactions. Alternatively, you can click 'DONE'.

Detaching a Previously-Reconciled Transactions

If you have matched a payment in error, to the wrong customer, for example, you can easily detach these. Simply click into the 'Matched' section.

Finally, find the reconciled payment and click 'DETACH' on the record. This will send the transaction back to the 'Unmatched' section.