How to Do Bank Reconciliation in Tally Prime and Tally ERP (Complete 2026 Guide)

Bank reconciliation is one of the most routine — and most time-consuming — tasks in accounting. For a CA managing 20 clients, reconciling bank statements manually can consume an entire day every month. Tally Prime and Tally ERP have Bank Reconciliation features that make this significantly faster, but only if your bank transactions are already in Tally.

This guide covers how to do bank reconciliation in Tally Prime and Tally ERP from start to finish: how to get bank transactions in, how to use the BRS feature, and how to resolve the most common discrepancies.

What is bank reconciliation and why it matters

Bank reconciliation is the process of matching your accounting records (the ledger in Tally) with your bank's records (the bank statement). Differences arise because:

• Cheques issued but not yet cleared by the bank
• Deposits made but not yet credited
• Bank charges, interest, or fees not yet recorded in Tally
• Direct credits or debits by the bank (ECS, NEFT) not entered in the books
• Timing differences in inter-bank transfers

A completed bank reconciliation statement (BRS) confirms that after accounting for all timing differences, your books and the bank agree. It is mandatory for all business audits and GST compliance.

Step 1: Get bank transactions into Tally Prime or Tally ERP

Bank reconciliation in Tally Prime or Tally ERP is only as good as the data already in Tally. If vouchers are missing, the reconciliation will show phantom differences that don't actually exist.

There are two ways to get bank transactions into Tally:

Option A: Manual entry (slow)

Enter each transaction by hand as a Payment or Receipt voucher. This works for firms with very low transaction volumes (under 50 entries a month per account) but is not practical at scale.

Option B: Import via Tally XML (fast)

Download your client's bank statement as a PDF, convert it to Tally-compatible XML using Doxify, and import via Gateway of Tally → Import → Vouchers. A 300-transaction statement imports in under 5 minutes. This is the method recommended for any firm handling more than one bank account per client.

Once all bank transactions are in Tally, you're ready to reconcile.

Step 2: Open Bank Reconciliation in Tally Prime or Tally ERP

1. Open Tally Prime or Tally ERP and select the company.
2. Go to Gateway of Tally → Banking → Bank Reconciliation.
3. Select the bank account (ledger) you want to reconcile.
4. Enter the date range for the reconciliation — typically the statement period.

Tally Prime or Tally ERP will show you a list of all vouchers posted to that bank account ledger during the selected period, with columns for the voucher date, narration, debit, credit, and bank date.

Step 3: Match vouchers against the bank statement

For each voucher in the Tally list, you need to confirm that it appears on the bank statement, and enter the date it cleared the bank (the "Bank Date").

1. Open the bank statement PDF alongside Tally Prime or Tally ERP (two screens are ideal here).
2. For each Tally voucher, find the matching entry on the bank statement.
3. When you find a match, click on the Bank Date column in Tally and enter the date the transaction cleared (from the statement).
4. Press Enter to confirm and move to the next entry.

Vouchers where you enter a bank date are considered "reconciled." Vouchers with no bank date remain as outstanding (timing differences).

Step 4: Handle unmatched entries

After going through all vouchers, you may find entries in Tally with no match on the bank statement, or entries on the bank statement with no corresponding Tally voucher. Handle each type:

In Tally but not on the bank statement

These are typically:

• Uncleared cheques: Cheques issued and entered in Tally but not yet presented to the bank. These are legitimate timing differences — leave them unreconciled and they will appear in next month's BRS.
• Errors in Tally: A voucher entered with the wrong date or wrong amount. Correct the voucher in Tally, then reconcile.

On the bank statement but not in Tally

These require action:

• Bank charges, GST on charges, interest: Create a Journal or Payment voucher in Tally for these entries and then reconcile them.
• Direct credits (e.g. customer NEFT/RTGS): Create a Receipt voucher for each and reconcile.
• ECS debits (EMI, insurance premiums): Create a Payment voucher for each and reconcile.

This is the core work of reconciliation. If you've imported the bank statement via XML before starting, most of these entries will already be in Tally as vouchers — you just need to match them.

Step 5: Verify the closing balance

Once all entries are accounted for, Tally Prime or Tally ERP shows the reconciled closing balance. This should match the closing balance on the bank statement.

If they don't match, the difference is somewhere in the unreconciled items. Common causes:

• A transaction on the bank statement was missed when importing or entering into Tally
• A transaction was entered twice in Tally (duplicate entry)
• An amount was entered incorrectly (₹1,200 entered as ₹12,000, for example)
• The opening balance in Tally doesn't match the bank statement's opening balance

Check these in order. Opening balance mismatches are easy to catch — look at the bank statement's opening balance and compare it to the Tally ledger's opening balance for the same date.

Step 6: Print the Bank Reconciliation Statement

Once fully reconciled, print or export the BRS from Tally Prime or Tally ERP:

1. In the Bank Reconciliation screen, press Alt+P to print.
2. Select the period and format (PDF for filing, print for physical records).
3. The BRS shows: closing balance as per bank, add uncleared cheques, less outstanding deposits, equals balance as per books.

This document is your audit evidence that the books agree with the bank as of the statement date.

How to do this faster every month

The biggest time sink in bank reconciliation is getting all the transactions into Tally before you start. If that step takes 3 hours (manual data entry) instead of 5 minutes (XML import), reconciliation becomes the bottleneck in your monthly close.

The workflow that eliminates this bottleneck:

1. Download the month's bank statement as a PDF
2. Upload to Doxify → download the XML file (under 1 minute)
3. Import XML into Tally Prime or Tally ERP (under 1 minute)
4. Open Bank Reconciliation and match entries

Steps 1–3 take 5 minutes instead of hours. Reconciliation itself (step 4) still requires your professional judgment — but you spend that time on actual accounting, not on data entry.

Bank reconciliation in Tally ERP

If you or your clients use Tally ERP, the Bank Reconciliation feature works alongside Tally Prime. Go to Gateway of Tally → Display → Account Books → Bank Reconciliation Statement. The matching process and the BRS output are available in both Tally ERP and Tally Prime. The XML files Doxify generates are compatible with both versions.

Summary

Bank reconciliation in Tally Prime or Tally ERP is a 6-step process:

1. Import all bank transactions into Tally (use XML import, not manual entry)
2. Open Gateway of Tally → Banking → Bank Reconciliation
3. Match each Tally voucher against the bank statement and enter the bank date
4. Create vouchers for any bank entries not yet in Tally
5. Verify the closing balance matches the bank statement
6. Print and file the BRS

The biggest lever for making this faster is the first step. Firms that import bank transactions via XML reduce monthly reconciliation time from half a day to under an hour — and that time saving compounds across every client and every month.