Nothing is reconciled in a close until someone imports its trial balance. Then each balance sheet account gets its own reconciliation sub-task under its section’s task on the close board (AR, AP, each tax registration, prepaid, fixed assets, other assets, other liabilities, payroll liabilities and equity). A section task can only be signed off once every account under it is approved. Sections that have no frequency or aren’t due in this close are left out. See Set up registrations and reconciliation sections.
1. Bring in the trial balance
- Open Reconciliation and pick the close.
- With the Tally connector: press Get balances from Tally, wait for the connector, then Review and import.
- Or press Import a file instead and choose the closing trial balance as at the period end: Excel, CSV or Tally XML, or a Zoho Books export (see Zoho Books). Press Read rows.
- Pick a category for any new accounts, choose the functional area for new accounts, and press Create … reconciliations. New accounts are mapped to a section from their names.
Last month’s open items are carried forward, so you start from what was open before.
2. Reconcile each account
- Open an account. Its balance comes from the trial balance and can’t be typed over.
- List the open items that make up the balance: Add line one at a time, or paste rows from Excel under Paste rows from Excel. Choose Customise line columns to capture your own columns.
- Use Reconciling item lines for differences you can explain. The Unexplained total should reach zero, or stay within the account’s threshold with a note.
- Press Attach backup on each line that needs it. Lines over the backup limit show Backup needed.
- For payables and receivables, set Check against invoice register to catch open invoices missing from the list.
- Send it for review and approval like any task.
3. Follow progress
The Reconciliation page shows the percentage approved, then a tab for each section (Taxes has one per registration), with each account in its own panel: balance, open items, unexplained, backup and who it is with. Refresh from Tally fetches every balance again, as at the last day of the close month.
Not needed this month?
A staff manager or admin can press Remove reconciliation from this close. It deletes that close’s account sub-tasks, their section tasks, their lines and backup, and the imported balances. Approved accounts must be reopened first. Other closes keep theirs.
GST, TDS and TCS accounts are also checked against the returns. See Reconcile GST, TDS and TCS accounts.