Partner Stories

10 Bank Reconciliation Challenges — Can Business Central ERP Solve Them Instantly?

Published by Dynamics Square USA

For most finance teams, bank reconciliation is one of the most essential—but also one of the most frustrating—parts of month-end closing. Whether it’s mismatched transactions, missing entries, or a time-consuming reconciliation process, even the smallest errors can lead to inaccurate reporting and delays in financial decision-making.

In this guide, we break down the 10 biggest bank reconciliation challenges businesses face today and how Microsoft Dynamics 365 Business Central solves them instantly through automation, bank feeds, matching rules, and real-time financial visibility.

1. Time-Consuming Bank Reconciliation Process

Traditional bank reconciliation often requires hours of manual work, downloading statements, matching transactions, and fixing mismatches.

How Business Central Solves It

Business Central automates:

  • Bank statement imports
  • Matching rules
  • Automatic transaction mapping

This reduces the time-consuming reconciliation process to minutes instead of hours.

2. Manual Bank Reconciliation Errors

Manual entries lead to:

  • Typos
  • Duplicates
  • Wrong amounts
  • Missing transactions

These bank reconciliation errors disrupt the audit trail and delay month-end closing.

Business Central Fix

The automatic bank reconciliation feature reduces human error by automatically matching transactions to ledger entries using AI-based logic.

3. Missing Transactions During Reconciliation

A major bank reconciliation challenge is identifying unexplained or missing transactions.

Business Central Fix

Business Central uses:

  • Direct bank feeds integration
  • Real-time transaction syncing
  • Automated alerts for missing entries

This ensures every transaction is captured instantly.

4. Reconciliation Mismatches

Reconciliation mismatches occur when recorded amounts don’t match bank statements.

How Business Central Solves It

AI-assisted matching rules detect:

  • Date variations
  • Partial payments
  • Currency differences

You see fewer reconciliation mismatches and faster closure.

5. Inaccurate Bank Reconciliation Reporting

Inaccurate reconciliations impact:

  • Cash flow accuracy
  • Financial statements
  • Forecasting

Business Central Fix

Because Business Central performs real-time financial reconciliation, your cash position always stays updated, accurate, and audit-ready.

6. Complex Multi-Account Reconciliation

Handling multiple banks and accounts complicates reconciliation.

How Business Central Solves It

  • Supports multiple bank accounts
  • Automated import for each account
  • Streamlined Business Central cash management workspace

Everything is standardised, reducing errors and improving financial management.

7. Lack of Visibility Across Transactions

Finance teams often struggle with real-time visibility across bank accounts.

Business Central Fix

With Business Central financial management, you get:

  • Real-time dashboards
  • Cash flow forecasting
  • Clear visibility into all bank balances and ledger entries

8. No Bank Feeds or Automation Tools

Many SMEs still rely on outdated software that doesn’t offer bank feeds.

How Business Central Solves It

Through bank feeds integration, companies can:

  • Import statements directly
  • Sync daily bank records
  • Enable automatic bank reconciliation

This cuts manual work dramatically.

9. Manual Bank Statement Matching

Manual matching is exhausting, risky, and slow.

Business Central Fix

Using bank statement matching rules, Business Central auto-matches:

  • Amounts
  • Dates
  • References
  • Partial entries

Finance teams only review exceptions, not the whole statement.

10. Difficulty Maintaining Audit Trails

A broken audit trail is a huge risk during audits.

How Business Central Solves It

Every step of the bank reconciliation process is:

  • Logged
  • Tracked
  • Timestamped
  • Linked to transactions

Better governance = smoother audits.

Why Business Central Is the Best Bank Reconciliation Solution for UK SMEs

For UK businesses trying to automate financial processes, Business Central bank reconciliation offers:

  • Faster, accurate reconciliation
  • AI-based matching
  • Automated bank feeds
  • Real-time visibility
  • Strong audit trails
  • Seamless multi-account support

Whether you’re solving common bank reconciliation issues, eliminating manual bank reconciliation errors, or building smarter financial automation, Business Central is one of the most reliable solutions for UK SMEs.

Final Thoughts

If you’re facing recurring bank reconciliation challenges, it’s not your team—it’s your tools.
With Dynamics 365 Business Central ERP, companies can automate bank reconciliation, eliminate reconciliation mismatches, and maintain accurate financial records with ease.

👉 To implement Business Central or automate bank reconciliation for your UK business, contact Dynamics Square UK.

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