What is Bank Reconciliation and Why Does It Matter?

Bank reconciliation is the process of matching your bank transactions with your accounting records to ensure accuracy and completeness. For landlords and sole traders, proper bank reconciliation is essential for:

  • MTD Compliance - HMRC requires accurate digital records of all income and expenses
  • Tax Accuracy - Ensure you're claiming all allowable expenses and reporting all income
  • Financial Control - Spot discrepancies, missing transactions, or errors quickly
  • Time Savings - Reduce manual data entry and bookkeeping hours
  • Audit Protection - Maintain clear, verifiable records that match your bank statements

RentalBux makes bank reconciliation simple with two flexible options: manual statement upload and automatic bank feed integration.

Option 1: Manual Bank Linking (Upload & Match)

Perfect if you prefer complete control or your bank doesn't support automatic feeds.

How It Works:

1

Obtain Bank Statements

  • Log in to your online banking platform.
  • Navigate to your transaction history or e-statements section.
  • Select the appropriate date range for the transactions you wish to import.
  • Download the statement in a supported format (preferably CSV or XLS).
2

Prepare the Data

  • Open the downloaded file using Excel or any compatible spreadsheet application.
  • Ensure the column headers align with Rentalbux's required format. Common fields include Account Number, Amount (positive for withdrawals and negative for deposits), Remarks (transaction descriptions) and Transaction Date.
  • Clean and label the columns clearly to avoid confusion during the import.
  • Remove any irrelevant or empty rows, as well as any sub-totals, grand totals, or additional headers that may disrupt the import process.
  • Correct formatting issues, such as ensuring dates are in DD/MM/YYYY format, amounts are in number format, etc.
  • After ensuring all data is clean and properly formatted, save the file in either CSV or XLSX format.
3

Import the Bank Statement

  • Log in to your RentalBux account using your credentials.
  • Navigate to the "Bank Reconciliation" tab from the main menu.
  • Click on the "Import Bank Statement" of Bank Account section.
  • Upload the prepared CSV or XLSX file.
4

The System Categorises Transactions

RentalBux will automatically attempt to match and categorise your transactions based on your previous entries and rules.

5

Review and Confirm Matches

Manually categorise any new or unrecognised transactions and review all matches before confirming the import.

Best For:

  • Landlords who prefer reviewing statements in batches
  • Banks without open banking support
  • Users who want to review before importing
  • Occasional reconciliation (monthly or quarterly)

Key Benefits:

  • Full control over what gets imported
  • Works with any UK bank
  • No ongoing bank connection required
  • Review before committing transactions
  • Upload historical statements for catch-up bookkeeping

Option 2: Automatic Bank Linking (Real-Time Bank Feed)

The fastest way to keep your books up-to-date with minimal effort.

How It Works:

  • Connect your bank account securely through Open Banking
  • RentalBux automatically imports new transactions daily
  • Smart categorisation applies rules based on your previous entries
  • Review and confirm suggested matches
  • All transactions stay synchronised in real-time

Best For:

  • Landlords managing multiple properties with high transaction volumes
  • Sole traders who want real-time financial visibility
  • Users who prefer hands-off automation
  • Anyone wanting to save maximum time on bookkeeping

Key Benefits:

  • Automatic daily transaction imports
  • Real-time financial dashboard updates
  • Smart categorisation learns from your patterns
  • Never miss a transaction
  • Reduced manual data entry by up to 90%
  • Always MTD-ready with current records

Bank Feed Security: Your Questions Answered

Is Automatic Bank Linking Safe?

Yes, absolutely. RentalBux uses Open Banking, which is:

  • Regulated by the Financial Conduct Authority (FCA)
  • Bank-grade encrypted connections
  • Read-only access (RentalBux can view transactions but cannot move money)
  • You control which accounts to connect
  • You can disconnect at any time
  • Your bank credentials are NEVER stored in RentalBux. Authentication happens directly with your bank through secure, regulated channels.

Which UK Banks Are Supported?

RentalBux supports automatic bank feeds from all major UK banks including:

  • Barclays, Lloyds, HSBC, NatWest, Santander
  • Nationwide, TSB, Metro Bank, First Direct
  • Monzo, Starling, Revolut, Tide
  • Most building societies and challenger banks
  • If automatic connection isn't available for your bank, manual upload always works.

Troubleshooting Common Issues

Manual Upload Problems

"My statement won't upload"

  • Check file format (CSV, XLS, XLSX, PDF supported)
  • Ensure file size is under 10MB
  • Remove any password protection
  • Try converting PDF to CSV using your bank's export options

"Transactions aren't being categorized"

  • Ensure transaction descriptions are clear
  • Create manual rules for unclear descriptions
  • Check date formats match (DD/MM/YYYY for UK)
  • Verify amounts don't have currency symbols in CSV

"I see duplicate transactions"

  • RentalBux flags potential duplicates automatically
  • Check date ranges when uploading overlapping periods
  • Use the duplicate detection tool before confirming
  • Uncheck duplicates before final import

Automatic Bank Feed Problems

"My bank feed disconnected"

  • Bank connections expire every 90 days for security (Open Banking regulation)
  • Simply reconnect following the same setup steps
  • Your historical data remains intact
  • Set calendar reminders to reconnect proactively

"Transactions aren't importing"

  • Check your bank feed status in Banking > Settings
  • Verify your bank hasn't changed their Open Banking access
  • Disconnect and reconnect the feed
  • Contact support if issues persist beyond 24 hours

"Categories are wrong"

  • Edit the transaction and select correct category
  • Create a rule to fix future similar transactions
  • Review and adjust smart rules in Settings > Categorization Rules
  • Training period: accuracy improves after 20-30 manual corrections

"I don't see today's transactions"

  • Bank feeds typically sync with 1-day delay
  • Some banks update in the evening (6pm-midnight)
  • Manual refresh available in Banking > Sync Now
  • Same-day transactions may require manual entry for immediate reporting

Bank Reconciliation & MTD Compliance

How Reconciliation Supports Your MTD Obligations

Digital Record Keeping

  • Bank-linked transactions create auditable digital records
  • Timestamps prove when income was received and expenses paid
  • Matches HMRC's requirement for contemporaneous record-keeping

Quarterly Update Accuracy

  • Reconciled accounts ensure complete income/expense capture
  • Reduces risk of missing allowable deductions
  • Provides confidence when submitting to HMRC

Audit Trail Protection

  • Every transaction links back to your bank statement
  • Export reconciliation reports for accountant review
  • Demonstrate compliance if HMRC requests information

Year-End Preparation

  • Clean, reconciled books make final declarations faster
  • Identify any adjustments or corrections early
  • Accountants can work directly from reconciled data

Frequently Asked Questions

Monthly is recommended. MTD requires quarterly reporting, but monthly reconciliation catches errors early and reduces year-end stress.

Yes. Upload past bank statements or import historical data through bank feeds (typically up to 12 months back).

Connect or upload all accounts separately. RentalBux consolidates everything into unified reports.

Not legally required, but highly recommended for cleaner reconciliation and MTD compliance. RentalBux can handle mixed accounts with filtering.

Yes. Upload credit card statements or connect via bank feed just like bank accounts. Categorize business expenses for MTD purposes.

90 days under Open Banking regulations. RentalBux sends renewal reminders before expiry.

No. Import unlimited transactions on all plans, including the free tier.

Yes. Unreconcile transactions, edit categories, or delete imports entirely if needed. Full control maintained.