Bank Reconciliation

Beta

Bank reconciliation helps you reconcile Stripe payouts with the deposits in your bank account, so you can keep a track of all the funds received from Stripe and connect your revenue with cash in the bank. To enable the reconciliation, link your bank account on Stripe and approve access for reconciliation.

After you provide access to your bank statement, Stripe automatically reconciles the Stripe payouts with the corresponding deposit in your bank account to determine the amount received and any outstanding balance. You can then access the details of each Stripe payout, the bank deposit, and the corresponding reconciliation statuses from the Dashboard. We prepare the summaries based on the UTC timezone.

Link bank account

To link your bank account, follow these steps:

1. Initiate the process: Click the Link bank account button on the bank reconciliation page.
2. Provide consent: Review Stripe’s privacy policy, linked account terms, and the details of the bank account where your Stripe payouts are being deposited.
3. Select your bank: Select your bank either from the list of the most frequently chosen banks shown in the tiles or by searching for it.
4. Authenticate Access: Sign in to your banking portal.
5. Select the account: Select the account where your Stripe payouts are being deposited.
6. Confirmation: You’ll see a success message when the link is successful. This might take a few minutes to complete.

This process isn’t required if you already have a linked bank account on Stripe. In case your bank link is inactive, you’ll need to relink and re-authenticate the access.

The bank reconciliation summary in the Dashboard provides you with a summary of the activity affecting your Stripe balance and the corresponding payouts to your bank account. It provides you a breakdown of your activity, grouped by reporting categories, and connects it with the payouts made by Stripe and the cash received in your bank. This helps you understand the breakdown of the amount paid by Stripe and the corresponding cash that has been reconciled with your bank on a monthly basis. It also helps construct the revenue to cash breakdown required for your monthly close process.

Consider the following example of a Stripe account which is on daily automatic payout, and has a payout speed of 2 business days with 8 days of activity. The account accepted payment with a value of 10 USD on January 28. Because the payout speed is 2 business days, these funds became available on January 30 and the first payout was processed to the bank account. For simplicity, assume there are no fees or other debits on these transactions.

* This example assumes that payouts aren’t credited into your bank on a Sunday, and therefore no amount is received on February 4 (which we assume to be a Sunday).

Given the above account activity, the bank reconciliation summary on February 4 would have the following data:

The information in the table above means that you had a total of 160 USD and 280 USD worth of transactions that were available to be paid into your bank account during the months of January and February respectively. For January, the complete 160 USD has been paid out from Stripe. Out of the 160 USD (all of which has been reconciled with your bank statement), 40 USD was received in your bank account in the same month that the transaction took place (January) and the remaining 120 USD was received in your bank account during subsequent months (February in this case).

For February, out of the total of 280 USD which was available to be paid out into your bank account, 160 USD has been paid by Stripe while the remaining 120 USD is yet to be paid out and is categorized as In transit. Out of the 160 USD which has been paid, 60 USD is reconciled with your bank account, and the amount was received in the same month when the transaction took place (February). The remaining 100 USD is yet to be received in your bank account and is therefore categorized as Unreconciled.

The Cash realized section shows you the total amount received from Stripe in your bank account during a calendar month. This helps you monitor your monthly cash inflow from Stripe. We capture this information from your bank statement and you can use it to update your cash accounts during the close process for the month.

In the example of account activity mentioned in the above section, the cash realized section would have the following data:

You can see that the total amount reconciled with the bank (220 USD) is equal to the sum of the amounts received in your bank account across the 2 months. Also, the sum of the amount reconciled with the bank in subsequent months from January and the amount reconciled with the bank in the same month from February (120 USD + 60 USD = 180 USD) is equal to the total cash realized from Stripe in February (180 USD).

Reconciliation records provide you a list of all the payouts made by Stripe, the bank deposits, and their corresponding reconciliation and payout statuses. You can filter and view this data based on payout date, payout status, and reconciliation status.

In the example of account activity mentioned in the above section, the reconciliation records would have the following data:

Reconciliation records report

The Bank reconciliation (beta) uses your Stripe transactions and Financial Connections accounts to provide you bank reconciliation services.