Bank reconciliation software helps to automate the financial close process and replaces it with a centralized online system. It replaces the possibility of human error with accurate and reliable software, helping to save time and increase your productivity. We have compiled a list of the five best bank reconciliation software for small businesses to assist you with finding the best solution for your business.
Best Bank Reconciliation Software
- QuickBooks Online: Best overall bank reconciliation software
- NCH Express Accounting Software: Best free bank reconciliation software
- Xero: Most affordable bookkeeping Software with outstanding bank reconciliation features
- Sage Business Cloud Accounting: Best automated bank reconciliation software
- ReconArt: Best bank reconciliation software for small to medium-sized businesses (SMBs) with a large volume of transactions
What Bank Reconciliation Software Does
A bank reconciliation is generally done once a month and ties the balance on your bank statement to the balance in your check register or general ledger account. The difference between your bank statement balance and your check register should be:
- Deposits in transit: Deposits recorded in your check register, but are not yet on your bank statement.
- Outstanding checks: Checks or electronic payments recorded in your check register, but not yet on your bank statement.
Sample Bank Reconciliation June 30, 202X | ||
Bank Balance 6/30/202X | 1,536.87 | |
Plus Deposits in transit | ||
6/29/202X | 1,635.00 | |
Total Deposits in Transit | 1,635.00 | |
Less Outstanding Checks | ||
#1693 | -336.35 | |
#1701 | -841.22 | |
Total Outstanding Checks | -1,177.27 | |
Check Register Balance 6/30/202X | 1,994.60 | |
QuickBooks Online: Best Overall Bank Reconciliation Software
QuickBooks Online
What We Like
- Batch categorization
- Transfers transactions from your bank automatically and marks them cleared on the reconciliation
- Excellent user interface and navigation
- More than 650 integrations
- Robust mobile app
- Extensive list of customizable reports
- Ability to sort income and expenses into tax categories
What's Missing
- Limited account users with each plan
- Monthly plans are expensive compared to alternatives
- Each company file requires a separate subscription
Plans & Pricing
QuickBooks Online has four different plans to choose from, all of which offer the bank reconciliation feature. New users can choose between 50% off for three months or a free 30-day trial. Here are the prices for each plan:
- Simple Start: $25 per month for one user
- Essentials: $50 per month for up to three users
- Plus: $80 per month for up to five users
- Advanced: $180 per month for up to 25 users
We ranked QuickBooks Online as the best overall small business accounting software, and it excels with its bank reconciliation capabilities. The software supports the standard reconciliation process, allowing you to compare your monthly account statement to what you see online and ensure that the two closing numbers match. You can see an example of the QuickBooks Online reconciliation process by viewing our tutorial.
To simplify this process, QuickBooks Online pulls in both your bank statements and your individual transactions. You can also reconcile as you go with new transactions that move from your bank into your account registers. You can verify and add these transactions, ask QuickBooks Online to find a matching transaction in your online records, or record them as transfers. You can also further document it by specifying a category or marking it as billable to a customer.
QuickBooks Online Bank Reconciliation (Source: Intuit)
Features
- Audit log: The audit log can be useful to find errors and transaction histories while reconciling. You can track the date of any change to your books, the name of the user who made the change, the type of change, and the original transaction date and amount.
- Accountant access: You can invite your accountant to QuickBooks Online via email and they will have access to all of the features of your account at no additional cost to you.
- QuickBooks Pro Advisor Network: If you decide that you would rather an accountant handle your reconciliations, it is easy to find a certified accountant through the QuickBooks Pro Advisor Network or by subscribing to QuickBooks Live.
- Scalability: You have the option of upgrading your QuickBooks Online account as your business grows, and you will also have access to other Intuit products, such as QuickBooks Payroll and QuickBooks Point of Sale, to support other business needs.
Our Expert Opinion
QuickBooks Online is an ideal solution for most small businesses because of its ease of use and ability to scale as your business grows. Features such as batch categorization will help to streamline the reconciliation process, and the audit log is indispensable for troubleshooting errors. Access to the QuickBooks Pro Advisor Network for assistance is a bonus. The software’s robust feature set and access to hundreds of app integrations more than justifies its designation as the industry standard for small business accounting software.
NCH Express Accounting Software: Best Free Bank Reconciliation Software
NCH Express Accounting Software
What We Like
- Free forever for companies with less than five employees
- Able to perform basic accounting tasks
- One-time purchase fee for larger companies
- Comes with optional add-ons for inventory and other functions
- Intuitive dashboard that allows for easy navigation
- Optional mobile browser access plan
What's Missing
- Not able to import bank transactions with a live connection to your bank
- No mobile app available
- Not able to capture and store receipt images
- Very limited customer support
Plans & Pricing
NCH Express Accounting Software offers a free desktop program for small businesses with less than five employees. Larger businesses have the option of three paid versions that are billed quarterly at prices that start at $26.49. Software licenses can also be purchased for a one-time fee directly through the NCH Software online store.
- Express Accounts Basic: $129 for the standard edition
- Express Accounts Plus: $139 for a fully featured, single installation license
- Express Accounts Plus Quarterly Plan: $7.72 per month for unlimited ongoing use of all professional version features and all upgrades, billed at $23.16 quarterly
NCH Express Accounts is an easy-to-use desktop accounting software that offers a free version for small businesses with less than five employees. Because it provides a quick solution to basic accounting tasks like invoicing and producing basic reports, it works best as a monitoring tool to track your transactions and view balances and reports. It allows you to reconcile your transactions manually or download a comma-separated values (CSV) file of your bank statement for quicker reconciliation, comparing your account ledger with the bank statement and matching transactions automatically.
Example of NCH Express Accounting Software Bank Reconciliation
Features
- Web access: The software has an optional mobile browser access plan that allows for multiple simultaneous users on the cloud.
- Financial reports and analysis: You have access to more than 20 preconfigured reports, including income statement analysis, cash flow statements, and balance sheets. These reports can be saved as PDF or CSV files or emailed directly through the software.
- Integrations: NCH Express Accounts integrates well with other NCH software, such as inventory management, timesheets, employee productivity and management, and project management.
- Multicompany access: You can run multiple businesses with a single installation, including businesses operating with different currencies.
Our Expert Opinion
NCH Express provides the tools you need to handle most aspects of your company’s financial management. If you’re looking for a quick and easy solution to track payments and bills that also excels with bank reconciliation, it is worth considering this option. Out of all of the free accounting software that we have reviewed, we feel that it has the best bank reconciliation feature.
Xero: Most Affordable Bookkeeping Software with Outstanding Bank Reconciliation Features
Xero
What We Like
- All plans include unlimited users
- Mobile app that allows you to reconcile transactions from your device
- Affordable price
- Integrates with more than 700 apps
- Project management features with Established plan
- Comprehensive reporting
What's Missing
- Doesn’t support multicompany accounting
- Limited tracking categories
- Lowest priced plan is limited to five bills and 20 invoices
- Steep learning curve
- Lacks phone and chat support
Plans & Pricing
Xero offers three plans with prices that range from $11 to $62 per month. If you purchase a plan before October 31, 2021 you are eligible to save 50% off the prices listed below for the first three months. A 30-day free trial is also available.
- Early: $11 per month for up to 20 invoices and five bills
- Growing: $32 per month for unlimited invoices and bills
- Established: $62 per month includes project tracking and multiple currencies
Xero has similar features to QuickBooks, can accommodate unlimited users, and is available at a lower price. We selected it as the best overall QuickBooks alternative for small business accounting software, which is partly due to the ease of bank reconciliation. When you reconcile, Xero will notify you if your actual bank balance and the balance of the bank reconciliation in Xero don’t match. The bank reconciliation summary makes it easy to check for missing, deleted, or duplicated transactions. You also have access to a powerful mobile app that allows you to reconcile on the go.
Example of Xero Bank Reconciliation (Source: Xero)
Features
- Auto-import of bank statements: Xero allows you to connect your bank feed so that your transactions will flow into your account daily. You also have the option to import your transactions manually instead.
- Transaction alerts: You can opt to receive alerts about unreconciled transactions on the Xero dashboard so that you can take action if necessary.
- Suggested matches: Xero will suggest matches for your transactions, categorize them automatically, and apply any rules that you set up.
- Bulk-reconcile transactions: With the Growing or Established plan, you can sort and group bank transactions, and then code and reconcile them in bulk. You can also apply a bank rule to a group of transactions.
Our Expert Opinion
Xero’s accounting software packs a punch when it comes to features and functionality. Its ability to add multiple users and ability to scale up its capabilities with apps and add-ons makes it an attractive choice for businesses looking for an alternative to QuickBooks. Its bank reconciliation features include transaction alerts and the ability to bulk-reconcile transactions, which will save you precious time and ensure that your data is always accurate.
Sage Business Cloud Accounting: Best Automated Bank Reconciliation Software
Sage Business Cloud Accounting
What We Like
- Supports unlimited transactions
- Free trial available
- Easy to set up and use
- Live support options available
- Department, cost code, and project tracking
- Ability to establish three item-price levels
What's Missing
- Requires an additional fee to use multiple currencies
- Starter plan only allows for one bank connection
- User interface is dated and not visually appealing
Plans & Pricing
Sage Business Cloud Accounting offers two affordable subscription plans that differ in the features that are available and the number of users that it can accommodate.
- Accounting Start: $10 per month for one user
- Accounting: $25 per month for unlimited users
Originally called Sage One, Sage Business Cloud Accounting is subscription-based accounting software that gives you the flexibility and scalability available with a cloud back-end. Connecting your bank and other financial institutions can simplify income and expense tracking. It includes tools for bank reconciliation that allow you to create and split bank transactions. The software also uses artificial intelligence (AI) to learn from your categorizations, and it will populate and route transactions to the correct place automatically.
Example of Sage Business Cloud Accounting Bank Reconciliation (Source: Sage)
Features
- Automated workflows: Sage Business Cloud Accounting allows you to automate your workflows. You can auto-post expenses and payments directly from your connected accounts and automate administrative tasks and invoicing easily.
- Bank rules: You have the ability to create and set bank rules that will be applied automatically to your transactions.
- Accountant access: The Accounting plan’s unlimited user capability allows you to share access with your accountant for easy collaboration in real-time.
- Audit trail: The audit trail is a complete record of all transactions entered, which is useful if you need to trace a transaction or if you’re asked to produce this as part of an audit. You can choose to view a summary or a detailed breakdown.
Our Expert Opinion
When you sync your bank account with Sage Business Cloud Accounting, it will import, categorize, and reconcile your transactions automatically. This gives you real-time cash balances while making month-end reconciliation much easier. The software also gives you the option to enter expenses manually if they’re not already recorded in the application. With its affordability and strong feature set, it was designed with small business owners and freelancers in mind.
ReconArt: Best Bank Reconciliation Software for SMBs With a Large Volume of Transactions
ReconArt
What We Like
- Suitable to reconcile any account type, not just bank accounts
- Seamless integration with enterprise resource planning (ERP) systems, internal systems, and platforms
- High-volume transaction matching
- Financial close management
- End-to-end automation
What's Missing
- Too expensive for many small businesses
- Not intuitive for end users
- No mobile app
- Limited customer support
Plans & Pricing
All ReconArt plans are web-based and work with any ERP, accounting system, and external data sources. There are five plans to choose from, which vary in price depending on the features and number of users that are needed:
- Essentials: $1,500 per month for five users
- Certify: $1,500 per month for 10 users
- Plus: $3,000 per month for 10 users, includes the Essentials and Certify modules
- Close: $2,500 per month for 20 users
- Enterprise: Custom pricing
ReconArt provides a reconciliation solution that can accommodate a variety of business scenarios. It is entirely web-based and can be hosted on-site if desired. ReconArt’s reconciliation software helps businesses with bank and credit card reconciliation, financial close, balance sheet reconciliation, variance analysis, journal entry, and intercompany reconciliation. It distinguishes itself from other software for SMBs by providing a comprehensive workflow around journal entry posting.
Example of ReconArt Bank Reconciliation (Source: ReconArt)
Features
- Scalability: ReconArt is scalable in terms of user base, data and accounts, and reconciliation volumes. Your company’s users can be distributed across locations, departments, and teams, and packages are available that will support small teams to larger enterprises.
- Journal entries: ReconArt helps you to ensure that all journal entries posting to the general ledger (GL) are correct and that there is a controlled and audit-proof journal entry posting process.
- Approval workflows: You have the ability to configure approval workflows based on amount thresholds or different risk levels.
- Reconciliation types: ReconArt supports all reconciliation types, including balance sheet, trades and positions, intercompany, ledger to subledger, accounts receivable (A/R)/accounts payable (A/P), GL/suspense, payments, credit card, and bank accounts.
Our Expert Opinion
ReconArt’s reconciliation solution delivers a high grade of automation and it consolidates several reconciliation practices and processes in a single platform. This intuitive and flexible program allows you to oversee all elements of the reconciliation lifecycle—from data integration and administrative management to transactional matching technology. It is an excellent choice for larger SMBs with a large number of transactions.
How We Evaluated Bank Reconciliation Software
There are many things to consider when determining which bank reconciliation software is the best option for your business. Depending on how sophisticated your needs are, it would ideally include the following capabilities, which we considered during our evaluation:
- Transfer transactions from your bank automatically
- Allow you to select transactions in your check register that appear on your bank statement
- Show you the difference between the cleared transactions in your check register and the statement balance continually
- Allow you to add, delete, or edit transactions in your register without leaving the reconciliation feature
- Once reconciled, print a reconciliation report showing all deposits in transit and outstanding checks.
- All deposits in transit and outstanding checks should carry over automatically to the next month’s reconciliation.
Bottom Line
Bank reconciliation is important in ensuring your financial statements are accurate so that you can be confident that the numbers you report to the IRS are correct. It is also key to ensuring that there aren’t any discrepancies that could point to fraudulent activity within your accounts. Depending on the size and needs of your business, you may decide to use accounting software with basic reconciliation features or one that automates the reconciliation process.
