- Set each client up once: bank accounts, exact Tally ledger names, Tally version and company, and a ledger map.
- Collect the full month for every account, with passwords sent separately, and log what came in.
- Never import a statement that fails the balance check. Opening balance must equal last month's closing.
- Import once, then reconcile. Whatever's left is either the bank's own entries to post or timing differences to watch.
- Close only when Suspense is empty (or explained) and a second person has reviewed the client.
A firm doing bank entries for many clients loses most of its time in the gaps between steps: chasing a statement, waiting for a password, re-checking an import nobody remembers doing, or explaining a Suspense balance in March. A shared checklist closes those gaps. Each step below has a clear "done" condition, so anyone can pick up a client and a reviewer can see where it stands.
Once per client: the setup
- Every bank account the client has, including current, savings, OD/CC and any account opened during the year.
- The exact ledger name for each account in the client's Tally company, spelled as Tally has it.
- Tally version and company: TallyPrime or Tally.ERP 9, the release, and the company name and financial year (see how the two versions differ).
- A ledger map: regular customers, suppliers, landlord, lenders, staff and their ledgers (see mapping bank transactions to ledgers).
- Who imports: your firm, or the client's own accountant on their machine.
- How passwords reach you: agreed with the client up front. Store them away from the files, never in file names.
Step 1: collect every statement
- Request statements for all accounts on the same day each month, for the full month: the 1st to the last day.
- Ask for the PDF the bank emails or the net banking download, not a screenshot or a phone photo.
- Get passwords on a call or a separate message (see password-protected statements).
- Log what arrived against the client's account list. A missing account is easier to chase on day 3 than on day 20.
Done when: every account on the client's list has a statement covering the whole month.
Step 2: convert and check
- Convert each statement to rows of date, narration, debit, credit and balance (see PDF to Excel and the balance formula).
- Run the balance check: every row's balance must equal the previous balance plus credit minus debit.
- Confirm the opening balance equals last month's closing balance in the books. A gap means a missed period or a missed entry.
- Confirm the closing balance matches the statement's closing balance.
Done when: every statement passes the check and ties to last month's closing balance.
Step 3: classify
- Apply the client's ledger map first. Most lines repeat every month.
- Set the voucher type on each line: Payment, Receipt or Contra (see the voucher reference).
- Split EMIs into principal and interest from the lender's schedule.
- For marketplace sellers, post payouts against the marketplace's receivable, not sales (see marketplace payout entries).
- Send anything you can't place to Suspense, and collect the questions in one list for the client.
Done when: every line has a ledger and voucher type, and the client has one list of open questions.
Step 4: import
- Back up the client's company.
- Check the company and financial year before you import.
- Import the Tally XML once (how to import into TallyPrime), and record the date and period in the tracker.
- Check the bank ledger's closing balance against the statement, and spot-check the Day Book.
Done when: the bank ledger closes at the statement's closing balance, and the tracker shows the period as imported.
Step 5: reconcile
- Reconcile each bank account for the month (see bank reconciliation in TallyPrime).
- Post any entries the bank made that the books don't have yet: charges, interest, auto-debits.
- List the timing differences that remain: cheques not yet presented, deposits not yet credited.
- Follow up any timing difference older than a month.
Done when: the only unreconciled items are genuine timing differences, each with a date.
Step 6: close the month
- Suspense is empty, or each remaining line has a note saying what you're waiting for.
- GST on bank charges is in the input GST ledger, and appears in the client's GSTR-2B before it's claimed.
- Marketplace clients: receivables match the settlement reports; GST TCS and 194-O TDS receivables match the portal and Form 26AS.
- Loans: the loan ledger balance matches the lender's statement after this month's EMIs.
- Notes for next month: new accounts, closed accounts, new regular payees for the ledger map.
Step 7: review and sign off
A second person, not the preparer, checks each client before the month is marked closed:
- Bank ledger closing balance equals the statement, for every account.
- No unexplained Suspense balance.
- Large or unusual entries look right: big cash deposits, round-sum transfers, payments to new names.
- The bank reconciliation's timing differences are reasonable and dated.
Record who reviewed and when. It takes a minute and answers most audit questions before they're asked.
A tracker you can copy
One row per client per bank account per month, in any spreadsheet the team shares:
| Client | Bank account | Month | Statement in | Converted + checked | Ledgers set | Imported | Reconciled | Suspense clear | Reviewed by |
|---|---|---|---|---|---|---|---|---|---|
| Sharma Traders | HDFC 0423 | Oct | 3 Nov ✓ | ✓ | ✓ | 6 Nov ✓ | ✓ | ✓ | AK, 8 Nov |
| Sharma Traders | SBI CC 7781 | Oct | 5 Nov ✓ | ✓ | ✓ | 6 Nov ✓ | 2 cheques open | 1 line, asked | |
| Patel Fabrics | ICICI 1196 | Oct | waiting |
Month-end traps to watch for
- A statement that stops a few days short of month end because it was downloaded early. Check the last date, not just the file name.
- A new account the client opened and forgot to mention. Ask every month, not just at year end.
- A screenshot instead of a statement. Ask for the PDF; screenshots miss rows.
- Importing into the wrong company or year, especially for clients with several Tally companies.
- Importing twice. The tracker's "Imported" date is your guard.
- Suspense that grows quietly month after month until it can't be explained.
How FileKey speeds up steps 2 to 4
FileKey is built for month-end bank entries across many clients. Upload each client's statement PDF from any of 730+ banks, password-protected included. FileKey turns it into rows and runs the balance check on every row. It suggests a ledger and voucher type from each narration, lets you edit, add or flag rows and adjust the opening balance, and exports Tally XML, Excel, CSV or MCS. If a conversion looks wrong, raise a ticket on it. See the bank statement to Tally converter.
Frequently asked questions
What should a month-end bank checklist include?
Collecting statements for every account, converting and balance-checking them, classifying each line to a ledger and voucher type, importing once, reconciling, clearing Suspense, and a second-person review before the month is closed.
How do I check a converted bank statement is complete?
The opening balance must equal last month's closing balance in the books, every row's balance must equal the previous balance plus credit minus debit, and the closing balance must match the statement.
What if a client sends the statement late?
Keep the step open in the tracker and do the rest of their accounts. Don't import a part-month statement to fill the gap; it makes the next month's opening balance wrong.
Who should review month-end bank entries?
Someone other than the person who prepared them. The reviewer checks closing balances, Suspense, unusual entries and the reconciliation, then records their name and the date.
How should a firm handle clients with many bank accounts?
Track each account as its own row. Every account needs its own statement, balance check, import and reconciliation, even if the client sends them together.
Sources and further reading
Rules change by notification and advisory. Check the GST portal before you file.
Written by the FileKey Team
FileKey builds the tools CA firms use for e-commerce GSTR-1 and bank statement conversion. We write these guides from the questions accountants and sellers ask us every filing month. Spotted something out of date? Write to [email protected] and we will fix it. More about FileKey.