WorkflowFinancial Close & Account Reconciliation

Bank Reconciliation Automation

Bank reconciliation software where agents explain every break, cite the proof and wait for your approval

Every break worked like a case, and fraud caught while the money can still come back.

See one case, screen by screen ↓
demo18,417linesof 18,642 matched by rule overnight — 98.8%, so they never become cases
demo196breaksof 225 cleared by the agents before Monday 08:40, each with cited evidence
target100%of bank breaks worked as cited cases within one business day
target10:00each morningevery account reconciled, not at month end
In short

What is Bank Reconciliation Automation?

Software that matches each bank statement to the ledger and explains every difference, so the bank balance ties to the book balance. Bank Reconciliation Automation adds seven agents: they match the routine lines, work every break as a case with cited hypotheses, draft the cash application or entry, check it to the cent and watch for duplicate and altered payments. A person approves every decision.

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Updated

The problem

Why the breaks, not the matches, take the morning

Every morning each bank sends yesterday's statement — BAI2 from most North American banks, camt.053 or MT940 from banks elsewhere — and matching rules tie most lines to the ledger. The few hundred that do not match are where the work sits: a customer paid two invoices in one wire less a bank fee, a payroll journal transposed two digits, a sweep posted for one entity and not the other. They are worked in spreadsheets and email. The analyst pulls the remittance, searches receivables, asks a colleague and guesses, and the tools only say that a line failed to match, not why. Breaks age into reconciling items that the auditors sample at year end.

They are also where the risk sits. A supplier paid twice, a cheque altered after it was issued, a wire to a bank account changed three days earlier by an email from a look-alike domain. A duplicate ACH debit can be reversed only within five banking days of settlement, and a forged cheque must be reported inside the window the deposit agreement sets. Fraud found at month end is usually found after the money can still come back.

typical74%of organisations faced business email compromise in 2025
typical58%of organisations hit by cheque fraud in 2025 — still the payment type most often defrauded
Where a day's reconciliation hours goestimated
By hand10 days
With the solution1.4 days
  • Collecting statements and checking they roll forward1 → 0.1 d
  • Matching the routine lines1.5 → 0.1 d
  • Researching breaks in remittances, receivables and payables4 → 0.5 d
  • Drafting cash applications and entries1.5 → 0.3 d
  • Checking for duplicates, altered cheques and changed bank details1 → 0.3 d
  • Sign-off, status reports and audit evidence1 → 0.3 d

Estimated hours a day for one region's daily reconciliation of about 60 operating, receipts and disbursement accounts, by hand and with the solution.

How it works

How a break is cleared

Seven agents match the lines, work every break as a case with cited hypotheses and check each other to the cent; a person approves.

What comes in
Sources in11 banks · statements, ledger, remittances, payment files
Agents at work
Statement collectorcontinuity, totals
Then
Matching agentroutine lines
Investigation agenthypotheses, sources
Then
Adjustment drafternever posts
Checkerto the cent
Then
Fraud sentinelrecall clocks
Close reporterstatus, evidence
A person decides
Treasury analystapproves with a reason code
What comes out
Cleared case
Entry parked in the ERP
Recall request
One case, step by step

One Monday morning, from 18,642 lines to a signed reconciliation

Kestrel & Vane Group runs 214 bank accounts at 11 banks across 13 legal entities. Friday 9 October's statements arrived over the weekend — 18,642 lines. Here is how Leo Grant, treasury analyst for the Americas, works them with the agents, screen by screen, in the working solution.

  1. 01Monday, 08:40

    The agents tell him what they found, in plain words

    Leo Grant · Treasury analyst, Americas

    Leo's morning opens as a conversation, not a grid. The agents worked through the weekend: 18,417 of 18,642 lines matched by rule, 196 of 225 breaks cleared with cited evidence, 15 still being investigated and 14 that need him, 3 of them risk alerts. Each agent reports in its own words — the fraud sentinel on three payments that look wrong, the checker on two cases where it disagrees, the statement collector on the one bank that has not sent Friday's file.

    Investigation agent: “The $18,250.00 deposit on ****4417 matches no invoice. It is two Fernwood invoices, $11,200.00 and $7,085.00, less a $35.00 intermediary charge. I am 97% sure and the checker agrees to the cent.”

  2. 02The casebook

    Every break is a case, not a row

    Leo Grant · Treasury analyst, Americas

    Every line that did not match is a case in one of four lanes: Needs you 14, Agents investigating 15, Cleared 196, Reopened 0. Each shows the bank line, the agent's working hypothesis in a sentence, the evidence tested so far, a confidence and who it waits for — Claire for the Orvella Metals wire, Owen for the Brask Logistics debit, Nadia for the Hartwig exchange rate, Leo for seven of them. The matched lines sit in one small line at the top, because they are not the story.

    “18,417 of 18,642 lines matched by rule overnight, so they are not cases.”

  3. 03C-4417-018

    Three hypotheses, two rejected and why

    Investigation agent

    A $18,250.00 wire from FERNWOOD INC, reference “FW PMT OCT”, landed on ****4417, the operating receipts account of Kestrel & Vane Distribution at Ellisford National Bank. No open receivable is for that amount. H1, one invoice, is rejected: the nearest is Varek Tools at $18,520.00, a different customer. H3, a part payment of INV-K-40655, is rejected: it was settled on 2 Oct. H2 is confirmed at 97%: two Fernwood invoices in one wire, less a $35.00 intermediary charge.

    Every test carries a numbered source; a click opens it.

  4. 04Replay

    He watches the investigation step by step

    Leo Grant · Treasury analyst, Americas

    “Replay the investigation” runs the agent's plan again on screen, one hypothesis at a time: it reads receivables, the remittance email, the bank statement's wire detail, Ellisford's fee schedule and the customer master, each step with what it found and how long it took. Leo sees what the agent read and in what order, not just a score.

    “Plan: 3 hypotheses to test for +$18,250.00 on ****4417.”

  5. 05One click

    The remittance behind the answer

    Leo Grant · Treasury analyst, Americas

    Citation 3 opens Fernwood's remittance advice, received in the remittance inbox on Thu 8 Oct at 16:42: INV-K-40731 for $11,200.00 and INV-K-40768 for $7,085.00, together $18,285.00, by wire on 9 October. The wire detail shows $18,285.00 instructed and $35.00 deducted under shared charges (SHA), and Ellisford's fee schedule §4.2 passes intermediary charges through.

    “Read-only copy kept with the case.”

  6. 06In the case

    He asks “why not Varek?”, and the draft is checked to the cent

    Leo Grant and the agents

    Leo asks the question he would ask a colleague. The agent answers with its sources: Varek Tools pays by ACH from ****8830, this wire came from ****2291, Fernwood's account on file, and Varek has never short-paid. Below, the adjustment drafter has applied $11,200.00 and $7,050.00 and drafted JE-D-1009-018 — Dr 6420 Bank and wire charges $35.00, Cr 1210 Trade receivables, Fernwood Inc. $35.00. The checker re-performs it on its own.

    Checker: “$11,200.00 + $7,085.00 − $35.00 = $18,250.00. The break clears to $0.00. Neither invoice is applied anywhere else. $35.00 is inside the $50.00 short-pay tolerance of policy TR-7.”

  7. 0708:42 · approved

    Approved with a reason code; the agents never post

    Leo Grant · Treasury analyst, Americas

    Leo approves with reason code FEE-WIRE — bank charge deducted from a wire, within tolerance — signed as Leo Grant, Treasury analyst, Americas. The case moves to Cleared, and the adjustment drafter parks JE-D-1009-018 in the ERP for posting; approved entries go to the ERP at 12:00 and 17:00. If something turns out wrong later, the case can be reopened with a note and the agents look again.

    “Every decision needs a reason code and is chained in the audit trail.”

  8. 08Risk alerts

    Three payments that look wrong, two with a clock running

    Fraud sentinel

    Brask Logistics was debited twice, $42,816.50 — the scheduled run and a manual re-send after a timeout — and the reversal window closes Fri 16 Oct, 4 banking days left. A $118,400.00 wire went to Orvella Metals at an account changed on 6 Oct from a look-alike domain, with no call-back recorded: recall today. Cheque #20418, issued for $974.00 to Lena Marsh, was paid at $9,740.00 to “L. Marsh Services” on an account not on positive pay: report to the bank by Sun 8 Nov.

    The sentinel reads matched lines too: the Orvella wire matched, but to a changed account.

  9. 09Drafted, not sent

    The reversal request waits for the second approver

    Fraud sentinel → Owen Strand · Assistant treasurer

    The sentinel has drafted the request to Ellisford's ACH operations: originate a reversing entry for the duplicate payment in file PR-1009-M, keep the original in file PR-1009-A, and notify Brask Logistics in advance, as the ACH rules require. Leo sends it to Owen Strand to approve. Every recall, reversal and claim needs two people, and no agent contacts a bank itself.

    “Drafted by an agent. Edit freely; nothing is sent until you approve.”

  10. 10Bank to book

    The account ties out, every item explained

    Leo Grant · Treasury analyst, Americas

    With Fernwood cleared, ****4417 shows its reconciliation from bank to book: the bank balance, each item in the bank but not yet in the books linked to its case, a $12,880.00 lockbox deposit in transit, the GL 1010 balance — and an unexplained difference of $0.00. Signing records the reconciliation as control evidence; open cases stay listed until they clear. At month end, Claire Whitcombe signs.

Who it’s for

Built for everyone who answers for cash.

The same Monday's breaks, seen by five of the people who carry them — what the morning looked like, and what it looks like now.

LG
Leo GrantTreasury analyst, Americas · approves up to $25,000
Treasury analyst
Before
Gets a list of a few hundred unmatched lines and works them in spreadsheets and email, while cash positioning is due by 10:00.
Now
Opens 14 cases that need him, each with the agents' hypothesis, sources and a checked draft; asks, approves with a reason code and moves on.
OS
Owen StrandAssistant treasurer · second approver above $25,000 and for every recall
Assistant treasurer
Before
Hears about a duplicate debit or a suspect wire when someone finds it — sometimes after the recall window has closed.
Now
Gets each reversal, recall and claim drafted with its evidence and the deadline the rules set, and approves it while the money can still come back.
CW
Claire WhitcombeController, Americas · owns the cash controls and signs month end
Controller
Before
Signs reconciliations she cannot easily re-perform, and answers for every reconciling item the auditors sample.
Now
Owns the rules and limits as signed versions, sees every agent step and decision on a chained trail, and hands the auditor an evidence pack.
NP
Nadia PereiraStaff accountant, general ledger · prepares the month-end bank reconciliation
Staff accountant
Before
Books adjustments that arrive by email with little support, and fixes the account or entity after the fact.
Now
Sees each drafted entry with its source and the checker's verdict, edits the account before it is approved, and the checker re-checks her edit.
RI
Rosa ImbertAR specialist, cash application · 3,000 receipts a week
AR specialist
Before
Chases unidentified lockbox cheques while customers are dunned for invoices they have already paid.
Now
Confirms the cash applications the agents propose — like three Dunstall Holdings cheques applied to invoices of its two subsidiaries — with the lockbox stubs cited.
Built on the engine

7 agents. Each with one job, and hard limits.

Seven agents match the lines, work every break as a case with cited hypotheses and check each other to the cent; a person approves.

Statement collector

Collects prior-day and intraday statements from every bank — BAI2, camt.053, MT940 or PDF — checks control totals and that each opening balance equals the prior closing balance, and chases a late bank.

  • Never edits a statement
  • Never accepts a broken roll-forward
Matching agent

Ties statement lines to the ledger — one to one, one to many, many to one — inside the matching rules' tolerances, and sends every line it cannot tie on as a break.

  • Never matches across entities or currencies
  • Anything under 95% is only a suggestion
Investigation agent

Works each break as a case: forms hypotheses, tests them against remittances, receivables, payables, payment files, lockbox images, card settlements, the bank's wire detail and fee schedules, and records what it rejected and why, with a confidence.

  • Never applies cash or posts
  • Asks a person below 75% confidence
Adjustment drafter

Drafts the cash application, fee, interest, FX or correcting entry from the confirmed hypothesis.

  • Never posts
  • Policy accounts only
Checker

Re-performs every proposal on its own from the raw lines: the break must clear to the cent, no item used twice, inside policy and limits.

  • Never approves
  • A disagreement always goes to a person, with both views
Fraud sentinel

Reads breaks and matched lines for duplicates, altered cheques, changed beneficiaries, look-alike domains and positive-pay gaps; runs the recall clocks and drafts reversals, recalls and claims.

  • Never contacts a bank or a vendor itself
  • Never holds a payment without a person
Close reporter

Writes the daily status and digest, sends SLA reminders, and builds the month-end reconciliation pack and evidence packs.

  • Never signs
Treasury analyst

Approves up to $25,000; the assistant treasurer co-signs above it and every recall. The agents propose; a named person decides.

Ask in plain words

Ask the agents, in plain words

Ask on Today, inside any case or of the fraud sentinel — or tell the agents what to try. Every answer cites its source, and nothing is sent until a person approves.

What is at risk today?

Three risk alerts. A $118,400.00 wire to Orvella Metals went to an account changed by a look-alike email: recall today. Brask Logistics was debited twice, $42,816.50, with the reversal due Fri 16 Oct. Cheque #20418 was altered from $974.00 to $9,740.00.

Why not the Varek invoice?

Varek Tools pays by ACH from ****8830 in the United States; this wire came from ****2291, Fernwood's account. Varek's INV-K-40702 is $18,520.00, $270.00 more than the wire, and Varek has never short-paid. That hypothesis stays rejected.

Which bank fees don't match our fee schedule?

Ellisford billed positive pay at $0.12 an item against $0.08 agreed: $96.40 over in September and $91.12 in August, $187.52 in all. The claim is drafted in C-5520-001.

Are other payments going to the new Orvella account?

None yet. One more Orvella payment, $36,210.00, is in Wednesday's run to the same new account. I propose holding it; that needs your approval.

Every screen

The working solution, as it ships.

13 screens from the working solution, on its sample data. Pick one to see it large.

TodayWhat the agents found overnight, in their own words: lines matched, breaks cleared, what is still being investigated and the 14 cases that need a person.
The casebookEvery break as a case in four lanes, with the bank line, the working hypothesis, the evidence tested, a confidence and who it waits for.
A case and its hypothesesThe bank line, the progress from collected to your decision, each hypothesis with its tests and sources, the decision bar and the conversation with the agents.
Replay the investigationThe agent's plan run again step by step: what it read, what it tested and how long each step took.
The source behind a citationA click on a citation opens the passage — here the customer's remittance advice — as a read-only copy kept with the case.
Ask, and the checked draftA question answered with its sources, the drafted cash application and journal, and the checker's re-performance to the cent.
Approve with a reason codeThe adjustment, the reason code and an optional note, signed by name and time, logged and chained.
Risk alertsDuplicates, changed bank details and altered cheques, each with its recall clock, its evidence and who approves — and what the sentinel watches.
A drafted reversal requestThe reversal request the sentinel drafted for the duplicate debit, editable, sent to the assistant treasurer to approve.
Bank to bookAn account's reconciliation from the bank balance to the book balance, each reconciling item linked to its case, and the unexplained difference.
The audit trailEvery agent step, approval and rule change with who, when, the reason code and a chained fingerprint; preview as the auditor or export the evidence pack.
Matching rulesThe rules in force, signed by the controller, with how many lines each matched on Friday — and the rules the agents propose from repeated approvals.
Thresholds and approvalsApproval limits, two people for recalls, the fee rule, the short-pay tolerance, the confidence below which agents ask, and the one-day clock.
Governance

Built for the cash control: cited, checked, signed, on the record.

Every hypothesis cites its sourceEach test in a case carries a numbered citation that opens the passage it came from — the remittance, the receivable, the wire detail, the fee schedule — as a read-only copy kept with the case.
A person decides, with a reason codeThe agents draft; a person approves, edits or rejects with a reason code, or reopens a cleared case with a note. Nothing posts, applies cash or reaches a bank until then.
Two agents must agree to the centThe checker re-performs every proposal from the raw lines. When the agents disagree — invoice or order advance, which contract's exchange rate — the case goes to a person with both views side by side.
Preparer is never the approverRoles enforce segregation of duties and limits on every decision: the analyst approves up to $25,000, and above it and for every recall, reversal or claim a second person approves.
Rules change only as signed versionsMatching rules, the fee rule and tolerances are versioned. A change is simulated on last week's lines and signed by the controller; rules the agents propose from repeated approvals wait for her decision.
A chained trail and an evidence packEvery agent step and every person's action is on an audit trail chained by fingerprints. The external auditor gets read-only access to re-perform a case, every view is logged, and the evidence pack is exported from the audit trail.
Configuration

Your cash controls, not ours

Limits, tolerances and matching rules are settings. A change needs the controller's signature and applies from the next statement.

SettingDefaultChoose from
Analyst approval limit$25,000.00Above it, a second approver (the assistant treasurer)
Recalls, reversals and claimsAlways two peopleThe drafter never sends
Fee rule FR-2 (version 4)Up to $250.00Fee entries that match the bank's schedule; a weekly sample of 5 to the controller
Short-pay tolerance (policy TR-7)$50.00Bank charges only; above it the customer is asked
Agents ask a person below75% confidenceMatching suggestions below 95% are never applied
Break must be worked within1 business dayThe clock starts when the statement arrives; a warning 4 hours before it is due
Matching rule R3, amount and date±2 banking days±1 · ±2 · ±3 · ±5 banking days, simulated on last week before it is saved
Matching rulesVersion 9, approved by the controllerReference exact · reference fuzzy · amount and date · one to many, up to 12 items · lockbox batch · card settlement net of fees · sweep pairs
Connections

Works with the banks and systems your cash already runs through

Bank statementsBAI2, camt.053, MT940 and PDF, prior-day and intraday — host to host, bank API, EBICS or SWIFT
Your ERPgeneral ledger, receivables and payables, read; approved entries parked for posting
Remittance inboxcustomers' payment advices, read only
Lockbox and card settlementslockbox images and stubs, card processor settlement reports
Payment hubpayment files and the supplier master change log
Treasury workstation and fee schedulesrates, the cash position and each bank's agreed fees
What it changes

The difference, in numbers.

Every figure is labelled: a target the solution is built to, an estimate, a typical published result, or a proven one.

target
100%
of bank breaks worked as cited cases within one business day
225 breaks
each with its evidence
typical
5days
duplicate debits flagged inside the ACH reversal window
Found at month endtoo late
Flaggednext morning
target
10:00
every account reconciled each morning, not at month end
Todaymonth end
Target10:00 daily

“demo” = seen in the working solution, on its sample data · “target” = the design goal, measured in the live solution · “estimated” = our estimate · “typical” = published figures (AFP 2026 Payments Fraud and Control Survey, via Nacha news, May 2026, and Digital Transactions, Aug 2026 — 74% of organisations faced business email compromise in 2025; cheques remain the payment type most often defrauded, at 58%). Clocks: Nacha Operating Rules, Article Two §2.9 — reversing entries within five banking days of settlement; UCC 4-406 — the customer's duty to examine statements, which deposit agreements may shorten. People, companies, banks and accounts named on this page are fictional — characters and sample data in the working solution.

Questions

What controllers and treasurers ask us.

What is bank reconciliation software?

Software that matches each bank statement to the ledger and explains every difference, so the bank balance ties to the book balance. Bank Reconciliation Automation adds seven agents: they match the routine lines, work every break as a case with cited hypotheses, draft the cash application or entry, check it to the cent and watch for duplicate and altered payments. A person approves every decision.

How does it investigate a deposit that matches no invoice?

The investigation agent forms competing hypotheses — one invoice, several invoices less a bank fee, a part payment — and tests each against remittances, receivables, payment files, the bank's wire detail and the fee schedule. It records which it rejected and why, with a confidence and a citation for every test, and you can replay the investigation step by step.

Does the AI post entries or apply cash on its own?

No. The agents draft the cash application or entry and the checker re-performs it, but nothing posts, applies cash, holds a payment or reaches a bank until a person approves with a reason code. Approved entries are parked in the ERP for posting.

How does it catch duplicate payments and payment fraud in time?

The fraud sentinel reads breaks and matched lines for duplicates, altered cheques, changed beneficiaries and look-alike domains, and counts down the clock that applies — five banking days to reverse a duplicate ACH entry, or the reporting window in the bank's deposit agreement. It drafts the reversal, recall or claim; a second person approves it.

Which bank statement formats does it read?

BAI2, ISO 20022 camt.053, MT940 and PDF statements, prior-day and intraday, received host to host, by bank API, over EBICS or SWIFT. Before matching, the statement collector checks control totals and that each opening balance equals the prior closing balance, and chases a bank whose file is late.

Do people stay in control?

Yes. The treasury analyst approves, edits or rejects every proposal with a reason code and can reopen a cleared case with a note. Above $25,000 and for every recall a second person approves, the preparer is never the approver, and when two agents disagree the case comes to a person with both views.

Can we set our own matching rules, tolerances and approval limits?

Yes. Matching rules, date windows, the short-pay tolerance, the fee rule, approval limits and SLAs are settings. A rule change is simulated on last week's lines, signed by the controller and saved as a new version on the audit trail.

How long does it take to go live?

The Agentic Solution Engine builds and deploys it from your requirements and documents — your bank formats, chart of accounts, policies and a sample of past statements — and it goes live once every quality gate has passed. We will walk you through it on your own statements first.

See it on
your statements.

We'll run Bank Reconciliation Automation on a week of your own prior-day statements and ledger.