Bank and payment reconciliation — Deposits matched to invoices, with only the leftovers sent to a person
Reconciliation automation matches money that lands in the bank to the invoices, sales and fees behind it. It splits batched payouts from processors like Stripe or Square into the payments they contain, including fees and refunds. The bookkeeper works through a short list of exceptions instead of the whole statement.
By Julia Ja, Owner
Monday payout · split and matched
Payout · $3,828.40| Line | Amount | Match |
|---|---|---|
| 42 orders | $4,108.00 | Matched |
| 2 refunds | -$96.50 | Matched |
| Processing fees | -$119.10 | Matched |
| Chargeback, #1187 | -$64.00 | Exception |
The chargeback has no entry in the books, so it goes on the exception list for the bookkeeper.
Review the exceptionWhy it matters
The problem it solves
A single deposit from Stripe, Square or Shopify can cover many charges, minus refunds and fees. The bank shows one number, while the books show many invoices and sales.
Matching them by hand means exports, spreadsheets and guesswork. Short payments and stray fees hide in the gaps until close, or until a customer says they already paid.
Example · illustrative
An online shop's Monday payout
- Monday morningOne Shopify payout lands in the bank.
- It covers 42 weekend ordersTwo refunds and the processing fees.
- The payout is split into each order, refund and fee, and each is matched in the books.
- One order carries a chargeback the owner hadn't noticed.
- It goes on the exception list, and the bookkeeper records it and lets the owner know.
How it works
How bank and payment reconciliation works
- Starts whenNew bank transactions or processor payouts come in
- 1Step 1Pull the transactionsThe bank feed, processor payout reports and point-of-sale daily totals are collected.
- 2Step 2Break down payoutsEach payout is split into the charges, refunds and fees it contains.
- 3Step 3MatchPayments are matched to open invoices, sales receipts and bills by amount, date and reference.
- 4Step 4List exceptionsUnmatched deposits, short payments and unexpected fees go on a list with the closest candidates.
- A person decidesResolve and closeThe bookkeeper decides on each exception and closes the period.
Before · by hand
- One payout deposit covers many charges, refunds and fees.
- The bookkeeper matches line by line in a spreadsheet.
- Short payments and stray fees are found weeks later.
With bank and payment reconciliation
- Payouts are split into the payments they contain.
- Clean matches are recorded in the books.
- Only exceptions reach the bookkeeper, each with what was expected.
What we build
The parts of bank and payment reconciliation
Your systems
- QuickBooks Online
- Xero
- Stripe
- Square
- Shopify
- Toast
What we build
1Transaction feeds
Connections to the bank feed, processor payout reports and point-of-sale daily totals.
2Payout breakdown
Splits each payout into the charges, refunds, fees and chargebacks it contains.
3Matching rules
Matches payments to open invoices, sales receipts and bills by amount, date and reference, including partial and combined payments.
4Exception list
Unmatched items, with the closest candidates and the reason each didn't match.
5Posting to the books
Records clean matches and fees in the accounting software under the accounts you choose.
Your team decides
- The bookkeeper decides how to handle every exception.
- A person closes the books, not the automation.
Industries it fits
What bank and payment reconciliation looks like in each industry
Restaurants & cafes
Daily Toast sales are matched to card deposits and tip payouts, with processing fees recorded separately. A day where sales and deposits don't agree, such as a missed batch, goes on the exception list.
Everything for restaurants & cafesYour industry isn’t listed, or works differently? Describe it and get an answer in a minute.
Getting started
What you need first
We go through these with you in the audit, before anything is built.
Before we start
4 things to have ready- Accounting software with the bank feed connected, such as QuickBooks Online, Xero or NetSuite.
- Access to payout reports from each processor or point-of-sale system you use.
- Your accounts for fees, refunds and chargebacks, and how you want them recorded.
- A bookkeeper who reviews exceptions and closes each period.
How a rollout runs
- 1Trace a few depositsWe trace recent deposits back to the charges and invoices behind them, to see where matching gets hard.
- 2Set the accounts and rulesWe agree on how fees, refunds and chargebacks are recorded, and what counts as a match.
- 3Connect the feedsWe connect the bank feed, each processor and the point-of-sale system to the accounting software.
- 4Reconcile a closed periodWe run matching on a period you've already closed and compare it to your results before touching open months.
- 5Run on new activityMatching runs on new transactions, and the bookkeeper works the exception list and gives feedback on the rules.
What to measure
How to know it's working
Weekly report · bank and payment reconciliation
IllustrationTransactions matched without review
Shows how much of the statement no longer needs a person.
Open exceptions at period end
The work left for the bookkeeper. Old exceptions point to a rule or data gap.
Processor fees left unrecorded
Missed fees understate your costs. This should stay at none.
Time to close the month
Shows whether reconciliation is still the step that holds up the close.
Customer payments found unapplied
A customer who paid but still shows a balance is a problem caught here.
We measure the baseline before building, so the change can be compared afterwards.
When it’s not a fit
- If you use one processor and have few invoices, the bank matching built into your accounting software may be enough.
- Bank feeds sometimes drop or duplicate transactions. Matching depends on clean feeds, so someone should watch for gaps.
- Customers who pay without a reference make matching harder. Ask for invoice numbers on payments where you can.
- It doesn't make accounting judgments. How to treat an odd item is still the bookkeeper's call.
Tool or custom build
Do you need a custom build?
Option A · a ready-made tool
An off-the-shelf tool may be enough
QuickBooks Online and Xero match simple bank transactions with rules. A2X turns Shopify and Amazon payouts into clean summaries for the books. Many small shops do fine with these.
Option B · built around your systems
When a custom build is worth it
A custom build makes sense with several processors and bank accounts, or payments that cover many invoices. It also fits point-of-sale and portal data the standard tools don't read.
Not sure which fits?
What it typically costs
Typical ranges as of October 2026. Not a quote.
Ready-made tool, set up by us
An existing platform on your own account, configured for your business.
- Setup, one timepaid to Lorryn
- $1,500–$2,500
- Tool subscriptionpaid to the provider
- $25–$100 / month
Fits when your process matches what the platform already does.
Custom build
Built around how you work, with no platform subscription. You own it.
- Build, one timebasic version to full version
- $2,000–$10,000
- Running costshosting and usage, on your accounts
- ~$5–$25 / month
Fits when your systems, rules or exceptions don't match a ready tool.
Optional Automation Care: $125 · $250 · $375 / month
1, 2 or 3 hours of support a month, with monitoring and alerts included. Without it, you run it yourself after handover.
Typically works with QuickBooks Online, Xero, Stripe, Square.
Booking into or writing to your field-service, practice or shop software adds up to $500 to the ready-made tool (often a built-in feature) and $500–$1,500 to a custom build.
Your price depends on volume, the systems involved and how many exceptions need a person. Our team confirms a fixed price before any work starts.
Proof and who stays in charge
Who does what
The automation does the routine steps. A person makes the call.
- 1Pull the transactionsAutomated
- 2Break down payoutsAutomated
- 3MatchAutomated
- 4List exceptionsAutomated
- 5Resolve and closeA person
FAQ
Questions about bank and payment reconciliation
It suggests matches for simple cases. This handles the harder ones: batched payouts, fees, partial payments and payments that cover several invoices.
The transaction goes on an exception list with the closest candidates. A person picks the right one or marks what it is.
Yes. Each account and processor is pulled in and matched on its own, then shown in one list.
Where possible it reads the bank feed already connected to your accounting software. Access is limited to what the matching needs, and it can't move money.
No. It works only in open periods, and closed periods stay locked in your accounting software.
The new processor is connected and given its own rules. Until then, its deposits go on the exception list.
Yes. Matching can be paused at any time. Records it already made stay in your books for the bookkeeper to review.
Related use cases
Often built together
- Billing & paymentsInvoicing automationBuilds a draft invoice from the finished job or order and puts it in your accounting software for review.
- Billing & paymentsExpense receipt routingReads receipt photos from staff, matches them to card charges and codes them to the right job or category.
- Data & reportingAutomated reportingPulls numbers from your systems into a scheduled report with a short plain-English summary.
Want bank and payment reconciliation for your business?
Pick the step that suits you. Every path starts with how the work runs today, and we'll say honestly whether it's worth automating.
- Right now · any hour
Ask Lorryn AI
Describe your process and get a first answer in a minute: what to automate, what it connects to, and a rough estimate.
- Free · 15 or 30 minutes
Talk to our team
Bring one process to a video call. Leave knowing whether it’s worth automating and how.
- Free · 6 of 15 spots left
Get a free written plan
Free for businesses with 3 or more employees, while spots last (normally $250).
Claim a free audit9 of 15 claimed