Custom financial reconciliation software development

Financial reconciliation software matches two data sources against each other and shows where they differ. The best-known form is bank reconciliation: bank statement transactions are matched against open items in the accounts receivable and accounts payable ledgers, after which the bank balance in the general ledger agrees with the statement. The software also reconciles sub-ledgers with the control accounts in the general ledger, payment flows from a payment service provider with the sales ledger, and suspense accounts that must be cleared to zero at period end. Custom software lets you configure the matching rules and reconciliations to match the way your own books are structured.

An accounting package records postings and maintains the general ledger, but the reconciliation itself is often carried out in separate spreadsheets alongside the package. Reconciliation software focuses specifically on matching and reconciling: importing bank statements in CAMT.053 or MT940, automatically matching transactions, flagging differences and providing demonstrable period-end close. We build this layer as custom development or as an addition to your existing accounting or ERP environment. For the wider administrative process, please see our page on accountancy software.

Dutch and European banks deliver bank statements in MT940 and in the ISO 20022 XML format CAMT.053, which is gradually replacing MT940. Our software reads both formats, plus CSV exports and, where possible, direct bank and PSP integrations under PSD2. Transactions are normalised, enriched with attributes such as the SEPA payment reference or iDEAL transaction, and prepared for the matching rules, so that clearing open items is largely automatic.

The matching engine compares attributes such as amount, payment reference, counterparty account, date and invoice number, and links a bank transaction to the corresponding open item. What matches unambiguously is cleared automatically. What doesn't match, such as a partial payment, a combined payment or a difference caused by bank charges, comes through as an exception in a workflow. For each difference, the team member sees the context and splits or links it manually, and the software remembers recurring patterns, so the amount of manual work decreases rather than recurring every month.

Yes. A core principle of a watertight set of books is that the total of a sub-ledger agrees with its control account in the general ledger, for example the accounts receivable or accounts payable control account. The software calculates that reconciliation per period, shows the difference down to the individual item and flags when a suspense account is not at zero. We align the chart of accounts with the Dutch Reference General Ledger Schedule (RGS) where you use it, so that reconciliations and reporting remain consistent.

Month-end close is the periodic process in which all transactions are checked, reconciled and recorded before the figures are final. Reconciliation software supports this with a close checklist, a status per reconciliation, task assignment and a four-eyes sign-off, so the team can see what is still open and what has been approved. Because matching runs throughout the month rather than only on the last day, the close shifts from a manual peak to a controllable process.

Both are possible. Best-of-breed platforms such as BlackLine, Trintech and FloQast offer broad reconciliation and close functionality, and SAP S/4HANA, Dynamics 365 Finance and NetSuite all have built-in bank reconciliation. Off-the-shelf packages don't always fit your data flows, your PSP settlements or your own matching rules. Where the standard falls short, we build custom software, or an integration layer that connects your existing systems, and we set out upfront which approach will deliver the most in your situation.

Reconciliation touches payment and ledger data, so internal control is central. We build role-based access, segregation of duties between those who post and those who approve, a four-eyes sign-off on exceptions, and a complete audit trail of every match, correction and reconciliation. We work to the OWASP security standards and GDPR, with encryption in transit and at rest. That keeps it demonstrable who matched and approved what, which supports the work of your accountant and internal audit function.