Why Bank Reconciliation is Broken - And How NewLedger Fixes It
Traditional accounting tools oversimplify reconciliation. NewLedger brings real-world flexibility with N:N matching and smart automation.
Bank reconciliation shouldn't be a headache.
Yet, for most businesses, it's a time-consuming, error-prone chore. Traditional accounting software like Xero, QuickBooks, and Zoho forces you into rigid workflows that don't match how real transactions happen.
- Ever received a lump-sum payout from a marketplace (like Shopify or Stripe) and struggled to split it across multiple orders?
- Had a customer pay an invoice in three installments over weeks?
- Paid a vendor bill with multiple transactions from different accounts?
If you've faced these issues, you've experienced the limitations of 1:1 reconciliation.
At NewLedger, we've rebuilt bank reconciliation from the ground up—supporting real-world complexity with many-to-many (N:N) matching, smart suggestions, and bulk processing.
The Problem: Legacy Reconciliation Doesn't Reflect Reality
Most accounting platforms assume every transaction is simple and one-directional:
🔹 1:1 Matching – One bank transaction = one invoice.
🔹 1:Many Matching – One bank transaction = multiple invoices (but not the reverse).
But business isn't that neat.
Where Traditional Tools Fail
| Scenario | Xero/QuickBooks/Zoho | NewLedger |
|---|---|---|
| Marketplace payout (one deposit = 50 orders) | ❌ Manual splitting or journal entries | ✅ Match all 50 at once |
| Customer pays in parts (3 payments = 1 invoice) | ❌ Workarounds needed | ✅ Combine partial payments easily |
| Split a single expense (e.g., $1,000 withdrawal = 4 bills) | ❌ Clunky adjustments | ✅ Divide in one click |
| Bulk reconciliation (100+ transactions) | ❌ Tedious checkbox clicking | ✅ AI suggestions + bulk confirm |
How NewLedger Does It Differently
1. Full N:N (Many-to-Many) Reconciliation
Unlike legacy systems, NewLedger lets you:
- Combine multiple deposits to cover a single invoice.
- Split one transaction across several expenses.
- Mix and match bank entries with invoices, bills, or journal entries—no restrictions.
📌 Example:
2. Smart Suggestions (Not Just Static Rules)
Instead of relying on fixed rules (e.g., "If memo says 'Stripe,' assign to Sales"), NewLedger learns from your behavior:
- AI-powered matching (amount, date, memo, tags)
- Tag-aware logic (e.g., "Marketing" expenses auto-suggest to the right category)
- Improves over time (fewer manual corrections)
3. Bulk Confirm & Audit Trail
- Review, adjust, and approve dozens of matches at once—no more checkbox hell.
- Full history tracking (who matched what, when, and why).
- Roll back mistakes with one click.
4. Open APIs & Custom Imports
Tired of fighting with restricted bank feeds? NewLedger offers:
- Direct API access (no "partner program" paywall)
- Custom CSV/Excel imports (for non-standard bank files)
- Auto-sync with Stripe, PayPal, etc.
Who Benefits Most from N:N Reconciliation?
🚀 E-commerce & Marketplaces
- Reconcile batch payouts in seconds.
- Handle refunds, chargebacks, and fees without messy adjustments.
💡 SaaS & Subscription Businesses
- Match partial payments (monthly vs. annual plans) accurately.
- Automate reconciliation with smart rules.
👔 Agencies & Freelancers
- Split client retainers across multiple projects.
- Track shared expenses (team reimbursements, vendor bills).
If your current accounting software makes reconciliation a guessing game, it's time for a change.
Finally, reconciliation that works the way you do.