Every business owner knows the feeling. It’s the end of the quarter, and somewhere in a spreadsheet or a shoebox of receipts, an invoice and a bank transfer are supposed to match up — and don’t, until you spend an evening finding out why.
We built TaxFlow AI’s reconciliation engine to remove that evening entirely.
How it works
When a transaction comes in from your connected bank account, the engine checks it against your open invoices using three signals at once:
- Amount. An exact match carries the most weight. A payment for the precise total of an invoice is the strongest signal there is.
- Timing. Payments tend to land within a predictable window of an invoice date. A transfer that arrives ten days after an invoice was issued is far more likely to be that invoice than one that arrives four months later.
- Description. Bank descriptions rarely spell out an invoice number, but client and vendor names usually appear in some form. The engine reads for that.
When all three line up, the match happens automatically and the invoice is marked paid. No review needed.
What happens when they don’t
Not every transaction is that clean. A client might pay slightly less than invoiced, or a transfer description might be garbled by their bank. When the engine isn’t confident, it doesn’t guess — it flags the transaction for a one-click manual review, showing you the most likely candidates ranked by similarity.
This is a deliberate design choice. An automation that silently mismatches a payment is worse than one that asks. We’d rather interrupt you once than let a wrong match quietly distort your quarterly filing.
The result
Across the invoices we’ve processed, the engine matches the large majority of transactions with no manual input at all. The remainder gets resolved in seconds, not the hours manual reconciliation used to take.
If you’ve ever lost an afternoon to a bank statement and a stack of PDFs, this is the part of TaxFlow AI built specifically for you.
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