8 best bank reconciliation software for 2020 [Free & Paid]

Tashreef Shareef
by Tashreef Shareef
Windows & Software Expert
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  • Automated reconciliation software is a dream come true to anyone running a small business.
  • We made a list with the best such tools that you can find on the market right now.
  • While we're on it, don't miss our suggestions on the  Accounting&Tax page.
  • Similarly, you can find some other good recommendations in the Personal Finance Hub.
automated reconciliation tools

The manual reconciliation is a tried-and-tested method and more than half of the companies in the US still take the manual approach when it comes to reconciliation. However, this method is prone to human errors.

The automated reconciliation of your bank accounts can take one of the most time-consuming tasks in the accounting department and make it faster and efficient.

But, not every company is ready to make the switch yet. The prime reason being the cost of the new automated system and the time it will take to train the employees to be familiar with the new technology.

The reasons are valid as every company has its own needs and no one software will fit the requirement of every business.

One way to know if your business needs a reconciliation software is to start with assessing your business needs to understand where the automation can help.

Once done, evaluate the available software options and then focus on the training part as the rollout of the new automated system begins.

There are many automated reconciliation tools available on the market today. So which should you choose for your business? If you are confused about software selection, we can help.

This article will help you in finding the best automated reconciliation software solution to modernize finance and accounting functions for greater productivity.

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What is the best bank reconciliation software for my business?

QuickBooks

get quickbooks reconciliation softwareWhen it comes to balancing checks, creating invoices, reconciliations, or pretty much any other accounting action, few software tools can come close to how good QuickBooks is.

Just like balancing your checkbook, you need to review your accounts in QuickBooks to make sure they match your real-life bank and credit card statements.

Admittedly, unlike some of the other entries on our list, this service does not feature automated reconciliation.

However, one great thing about QuickBooks is the added documentation that will teach you how to use it to do pretty much anything. This includes guides that will teach you how to reconcile your accounts so they match your bank and credit card statements.

The process is fairly simple:

  • Get your bank or credit card statements
  • Use the Reconcile option in Tools, then choose the account you’re aiming at.
  • Examine the dashboard of your transactions to compare whatever you had on the paper with what you already have in the tool.

Quickbooks shows, under the same screen,  the type of transaction, when it was done, the amount, the account. Pre-approved transactions from the bank appear as already checked by QuickBooks.

Whatever transaction is not checked, you have to check it manually, after making sure that it is also listed on your statement.

If, at the end of the reconciliation you reach a difference of $0, to match the data in QuickBooks and that on the bank statement.

You can take advantage of the 30-day free trial for QuickBooks, and see how well it does with regards to your past month. If you are satisfied with the product, you can then opt for a paid subscription that will unlock all of QuickBooks’ capabilities.

QuickBooks

QuickBooks

Use QuickBooks to easily reconcile your accounts and keep track of all your transactions.
$12.5/mo. Visit website

TurboTax

account reconciliation tools turbotax

TurboTax is a software that focuses mainly on facilitating the process of filing tax returns for small businesses.

One of the best things about it is that it’s free to use for certain operations, such as filing your federal and state taxes, importing your return from a previous year from similar tax software, or offering guidance in case of an audit.

Again, this is not an automated tool when it comes to reconciling your accounts, but it’s nevertheless very easy to use the software.

To reconcile your accounts, you have a dedicated Balance Sheet option under the Federal Taxes menu. Here you have to manually update existing accounts or enter new ones and make sure the entries match the amounts in your books.

One advantage though is that you could use TurboTax together with QuickBooks (since they are owned by the same company and are actually meant to be used together), and import your balance sheet from there.

TurboTax

TurboTax

Use this free and simple software to deal with both federal and state taxes, and then reconcile your accounts.
Try it free Visit website

FreshBooks

Freshbooks reconciliation toolBank reconciliations are just one aspect of a much broader spectrum known as finance and accounting. Luckily enough FreshBooks can handle pretty much everything that is included in these programs.

It doesn’t matter if you own a small company or a multinational enterprise, FreshBooks will do an excellent job in keep order in all of your business transactions.

One key aspect of this tool is that it is simple and intuitive, so you’ll spend less time on paperwork and wow your clients with how professional your invoices look.

It also automates plenty of tasks like invoicing, organizing expenses, tracking your time and following up with clients in just a few clicks.

Unfortunately, bank reconciliations are not included in the automated task list. However, this job isn’t exactly something you would leave in the hands of an AI, no matter how advanced it may be.

As such, by automating the simpler tasks, you can then focus on the ones that are truly important.

Download FreshBooks

BlackLine Account Reconciliations

reconciliation software blackline

BlackLine’s automated Account Reconciliation software allows you to standardize, control and streamline the reconciliation process. It is a cloud-based solution and provides an intuitive interface for performing account reconciliation.

The account reconciliation process includes standardized templates, approval, and reviews, linking to procedures and policies and workflows for preparation. The integration option allows you to store supporting documents on the cloud.

It reduces the possibility of human error in a paper-based manual spreadsheet by maintaining proper segregation of duties. This also includes automatically adding new ERP accounts and creating post-certification for unprecedented transparency into the accounting process.

The users can see the details of account reconciliation and add text fields and upload supporting documentation. The dashboard shows the completion status of account reconciliation for a quick preview.

The BlackLine Reconciliation is an excellent reconciliation product that is easy to deploy as well as learn. However, better user documentation can make the software more user-friendly.

Get BlackLine Reconciliation Software 

ReconArt Reconciliation Solutions

get reconart reconciliation software

ReconArt offers a reconciliation software solution and management suite. It is a cloud-based solution that helps to streamline your finance and accounting reconciliation process increasing workflow and productivity.

ReconArt’s solution comes with tools that offer powerful functionalities to operate at new levels of efficiency. You can automate routine and high volume scenarios.

Other benefits of ReconArt Reconciliation solution include the ability to recapture and redirect team bandwidth, reduce time-to-complete windows and increase accuracy and decrease risk.

One of the core elements of the software is scheduling. It allows you to schedule activities and actions using an easy-to-use calendar.

It can also automate the data importing, mapping and enrichment process, automate execution, allocate codes for automated reconciliation status, add items exceptions, send alerts and notifications and data extraction,

ReconArt Reconciliation software is an easy to use solution with high-performance and comes with the flexibility of scaling to meet your business needs as it grows.

Get ReconArt Reconciliation Software 

Xero

reconciliation software xero

Xero is a cloud-based account management solution ideal for Startups and small and medium-sized enterprises (SMEs). The could based solution can also be used on smartphones using the app or through a web client.

Xero is more than just an automated reconciliation software; it offers the tools to process invoices and quotes, manage inventory, manage purchase orders, bills and expenses, and third-party app integration to import data from your other management solutions.

You can customize the Xero experience by integrating it with specialized software for your business using services like PayPal, Shopify, Expensify, Deputy, Gusto, Squarespace and more for point-of-sale, time tracking, e-commerce and more.

The online dashboard allows you to monitor cash flow with charts and graphs, customize reports, see details about your bank accounts and credit card, follow up on outstanding invoices, monitor your sales and specific parts of the business.

For the reconciliation process, Xero automatically imports bank transaction every working day, set up rules to match bank transactions automatically to invoices, create routines, group similar transactions and match them in one go and more.

With Xero, you can add an extra layer of security to protect sensitive information, track project times and spendings, create and check inventory items, pay bills, and run unlimited payroll across all the 50 states using Gusto.

Xero is not just an automated reconciliation software but a finance and account management solution that is easier to use, faster in task processing, and reliable.

Get Xero 

Statement Matching

statement matching reconciliation software

Statement Matching is a cloud-based automated reconciliation software solution that is available for Windows computers as well. It is an ideal solution for startups, SMEs, Agencies, and enterprises.

Statement Matching comes equipped with tools to keep track of credit notes, payment dues, miss-posting, and send notifications and alerts offering a proactive approach towards cash flow.

Where other conciliation software requires you to upload suppliers’ documents, Statement Matching takes it one step further and allows the suppliers to access and reconcile their own statement, view the status of the invoices and leave comments using the online portal.

The software reconciles the statements by company and vendor using the invoice date, number, amount and currency details. You can also use it with cross-company and cross-vendor in case the supplier has multiple accounts on your system.

Statement Matching uses a checklist of rules to reconcile the statement and allocate an overall status for the statement and each line. Some of the statuses and their purposes are listed below:

  • Fully Matches status means the software did not found any duplicate entries.
  • Fully Matches with Data Mismatches hints at the correct statement but some lines have data discrepancies.
  • The Unpaid Item Missing on Statement means unpaid invoices on your ledger are not quoted on an otherwise fully matched statement.

Statement Matching offers a live demo showing the working of the reconciliation process and features on request. You can request the demo from the official website.

Get Statement Matching 

Bank Rec (Treasury Software)

treasury software reconciliation tool

Bank Rec is an automated reconciliation software that you can download and install on your computer. It allows you to perform high speed automated matching with their predefined rules.

Bank Rec uses Automated Transaction Matching engine matches bank records to internal records. For each account, you can select matching rules such as issue-to-issue, check-to-check, and user-defined.

The Reconciliation Wizard offers reconciliation reports that satisfy the Sarbanes-Oxley 404 act. It can also generate period sensitive reconciliation reports that include historical data. Everything can be exported to Excel if necessary.

Using exception reporting, you can identify why a record didn’t match with your ledger with a set of predefined rules. Further, you can track unmatched items and resolve the problem using the Point and Click option.

Bank Rec uses Type Classes as an attribute during matching to achieve the highest possible rate. You can import Excel and CSV files or simply copy and paste them for easier imports. It also supports BAI files, SQL insertion, and QuickBooks integration.

Bank Rec is an offline software that can free your employees from the time consuming manual reconciliation task and make them focus on exceptions.

Download Bank Rec 


Automated Reconciliation software can help you with data availability, different data formats, lack of transparency, data matching issues, and data complexity, that often create problems during transactional matching.

The reconciliation process may never go fully automated, but these tools surely will help you to increase the workflow and make your staff more efficient with fewer human errors.

That being said, take a look at our recommendations for the top reconciliation software and request for a demo from the company to understand if it can help you manage your business in a better way.


FAQ: Learn more about accounting software

  • What is the most commonly used accounting software?

The most popular accounting software might not necessarily suit your needs. Each comes with particular extra features besides the basic ones, so it’s better to try them out.

  • What software do accountants use?

A lot of developers in the domain offer dedicated tools for accountants or dedicated features that allow business owners to share the books with their accountants.

  • What is the best free accounting software?

A lot of accounting software offers a basic free version, to allow users to run some operations. Also, most such software can be tried for free for a month.

Editor’s Note: This post was originally published in January 2019 and was updated and revamped in July 2020 for freshness, accuracy, and comprehensiveness.