Bank reconciliation is how you make sure every line on your bank statement matches a transaction in your books. In Cybooks, it's a guided workflow: your bank lines come in, AI suggests the right match, and you confirm. Done well, it's also how your VAT Return ends up clean and complete.
The big picture
Each line that arrives from your bank starts as an unreviewed item. Cybooks then asks three questions for every line, in order:
Who is the payee? (Customer or vendor)
What account does it post to? (Chart of Accounts category)
Why — is there a supporting document? (Invoice, bill or receipt)
When all three are filled in, the transaction is VAT-ready and reconciled. You'll see a small status chip on every line telling you what's still missing.
Tip: The "VAT-ready of total" progress bar at the top of the page is the single number to watch. When it hits 100%, your bank account is fully reconciled and ready for VAT filing.
Get bank lines into Cybooks
Two ways:
Live bank feed – Connect your bank through GoCardless. Lines appear automatically every day.
Manual import – Upload a
.csvfile from your online banking.
See Connect a bank account and Import bank transactions manually for the setup steps.
Open the reconciliation screen
Go to Bookkeeping › Bank Accounts and open the account you want to work on. Use the Reconcile tab.
You'll see two sides:
Left: the bank statement line.
Right: Cybooks' suggested match from your books.
Screenshot needed: The Reconcile tab showing the split view with a bank statement line on the left, an AI-suggested match on the right, and the trifecta status chips (Who / What / Why).
How matches are suggested
For each bank line, Cybooks runs through several layers:
Existing record match – If the amount, date and reference line up with an existing invoice, bill or payment, Cybooks suggests it.
Rules – If you've set up a rule that fits this line, the rule's coding is applied.
AI vendor match – Our AI looks at the bank memo and suggests the most likely vendor or customer based on your history. You'll see a small "Suggested" badge until you confirm.
Account suggestion – Cybooks suggests the best Chart of Accounts category for the transaction.
Confirm the suggestion with one click, or change any field before you do.
Match a bank line
To an existing bill, invoice or payment
If a suggested match looks right, click Match. The bank line is reconciled and your books update straight away.
If no suggestion is shown, click Find & Match. Search by payee, amount, reference or description, tick the records that make up the bank line, and click Reconcile. You can match one bank line to several invoices or bills if it's a batch payment.
To a transfer between your own accounts
Use the Transfer tab inside Find & Match to move money from one bank or cash account to another. Cybooks creates the matching line on the other side automatically.
By creating a new transaction on the spot
If the bank line doesn't have a matching record yet, use the Create tab to record it directly — pick the account, tax rate, payee and description. Useful for bank fees, salary payments, owner contributions and one-off costs.
For owner's money or shareholder transactions
Use Create equity or liability transaction for things like a director's loan or shareholder injection, where there's no customer or vendor in the picture.
Important: If the bank line is for an expense that needs a receipt to reclaim VAT, attach the document during reconciliation. Without a receipt the transaction goes onto your VAT Return but the input VAT can't be reclaimed.
Speed it up with rules
For repeating lines — bank charges, subscriptions, rent — create a rule from the bank line itself. Click Options › Create Rule on any statement line, and Cybooks pre-fills the conditions for you.
With Auto-add turned on, future matching lines reconcile themselves with no clicks. See Set up rules to auto-categorise bank transactions.
Status chips explained
VAT ready – All three (Who / What / Why) are filled in. Reconciled and counted toward your VAT Return.
Doc missing – Matched, but no supporting receipt or invoice yet.
Needs category – No Chart of Accounts category set yet.
All needed – Nothing filled in yet — this line is still a fresh bank statement entry.
Check the balance
The top of the screen shows your Statement Balance (according to the bank) next to your Books Balance (according to Cybooks). When they match, you're fully reconciled. If there's a difference, the bar tells you the amount — usually it's a missing line or a duplicate.
Screenshot needed: The top of the bank account page showing Statement Balance vs Books Balance with the "Matches your books" indicator (or a difference amount).
Undo a reconciliation
Made a mistake? Open the reconciled transaction and click Unreconcile. The bank line goes back to the inbox so you can match it differently. Your audit trail keeps a record of the change.
Frequently asked
Why doesn't my bank balance match my books balance?
The most common reasons are: a bank line that's not yet reconciled, a duplicate transaction, or a transfer recorded on only one side. Sort the list by date and look for gaps.
Can I match one bank line to several invoices?
Yes. Use Find & Match and tick all the records that make up the total.
What if my bank feed stops working?
You'll see a banner telling you the GoCardless connection has expired. Click Connect now and re-authorise — old transactions stay in place.
Do I have to reconcile every line?
Yes — reconciliation is what makes your VAT Return, P&L and Balance Sheet trustworthy. The good news: with bank feeds, AI suggestions and rules, most lines reconcile in one click.
Can I let my accountant do this?
Yes. Invite your accountant from Settings › Users & Permissions, or use Cybooks Concierge to have a dedicated accountant handle reconciliation for you.