Overview
Reconciliation compares two sets of records that ought to match and explains every difference. A bank reconciliation compares your books to the bank statement. A GST reconciliation compares your purchase records with the credit available on the portal. A TDS reconciliation compares deductions with what shows in the tax department's statements.
Differences are normal. Timing, a missed entry, a supplier who has not filed, a wrong GSTIN or a deduction credited under the wrong PAN are the usual causes. The aim is to find each one early, fix what can be fixed and track the rest.
Done regularly, reconciliation protects input tax credit, avoids notices, makes audits quicker and gives you confidence that the numbers in your reports are real.
Is reconciliation the right fit?
Almost every business benefits, but some situations make it urgent.
Usually a good fit if
- You claim input tax credit and want to match it with what your suppliers have reported.
- You deduct or have tax deducted and want credits to appear correctly.
- Your books and bank have not been matched for months.
- You are preparing for an audit, due diligence or a notice reply.
Think twice if
- Your books are not yet written up; bookkeeping needs to come first for reconciliation to work.
- You expect reconciliation to create missing records; it finds gaps, but the paper still has to come from you or the other party.
Key benefits
Protects input tax credit
Credit you cannot support is the first thing questioned in a GST assessment.
Cleaner books
Missing and duplicate entries surface and get corrected.
Notice readiness
Mismatches are explained before the department asks.
Better vendor follow-up
You know which supplier has not filed or has used the wrong details.
Trust in reports
Management numbers match reality.
Audit speed
Auditors spend less time on queries.
What we need from you
What we need depends on the type of reconciliation.
Bank reconciliation
- Bank statements for the period
- Cash book or accounting data file
- Details of cheques issued or deposited but not yet cleared
GST reconciliation
- Purchase register or ledger for the period
- GSTR-2B statements from the portal
- GSTR-1 and GSTR-3B for sales reconciliation
- Credit and debit notes
TDS and income tax
- TDS certificates and statements received
- Form 26AS and the Annual Information Statement for the PAN
- TDS ledger and challan details
Vendor and customer
- Ledger confirmations or statements from the other party
- List of open invoices, advances and credit notes
How the process works
Scope and period 1 day
We agree which reconciliations are required and for how long a period.
Data collection 1 to 3 days
We collect books, portal downloads and statements.
Matching 2 to 5 days
Entries are matched using amount, date, document number and party identifiers.
Investigate differences 2 to 5 days
Each unmatched item is traced and tagged as timing, missing entry or error.
Correct and follow up Ongoing
Book entries are corrected and requests go out to suppliers or customers for the rest.
Report At close
You receive a reconciliation statement with the status of every open item.
How long it takes
| One-time catch-up | 1 to 3 weeks depending on volume |
| Monthly reconciliation | Within the first half of the following month |
| Annual clean-up before filing | Aligned with the filing calendar |
Volume and quality of records mostly decide timing.
What you get at the end
The deliverable is not just a number but an explanation.
- Reconciliation statementsA signed-off statement for each account reconciled.
- List of open itemsEach with an owner and the next step.
- Adjusting entriesProposed corrections for your approval.
- Vendor follow-up listSuppliers whose filings or details do not match.
- RecommendationsProcess changes to keep mismatches from recurring.
Types of reconciliation at a glance
| Type | Compared against | Why it matters |
|---|---|---|
| Bank | Bank statement | Confirms cash balance and finds missing entries |
| GST input credit | Statement on the GST portal | Protects credit you can claim |
| TDS | Form 26AS and AIS | Ensures credit for tax deducted |
| Vendors | Supplier statements | Avoids disputes and duplicate payments |
| Customers | Customer statements | Speeds up collections |
Frequently asked questions
How often should GST input credit be reconciled?
Every month before filing the return is ideal. Credit generally depends on what appears in the auto-generated statement for the month, so checking before you file avoids surprises.
What if a supplier has not filed their return?
Their invoice will not appear in your statement. We list such suppliers so that you can follow up, and track the credit until it is resolved.
Why does my TDS not match Form 26AS?
Common reasons are a wrong PAN given to the deductor, deduction not yet deposited or the deductor's return not yet filed. We trace and tell you whom to approach.
Can you reconcile several bank accounts?
Yes. We reconcile each account and any payment gateways and wallets separately.
Do you correct the books during reconciliation?
We propose adjusting entries and post them with your approval, so nothing changes without your knowledge.
Is this the same as an audit?
No. Reconciliation is an internal control exercise, while an audit is an independent examination by a qualified auditor.
This page is general information to help you prepare, not legal, tax or professional advice for your situation. Rules, forms, thresholds and due dates change, so we confirm the current position before we file anything for you. Taxswami Consultants is an independent professional services firm and is not a government body.