Reconciliation and close · 6 minute read
Bank Reconciliation With AI Drafts: What Owners Should Approve
Reconciliation with AI drafts is still your work, just with better starting points. Here is what to look for, what to approve, and how to handle what does not match.
Published · Last reviewed
The short version
- AI drafts are a starting point, not a finished reconciliation.
- Mercury connects directly; other U.S. banks use PDF or CSV statement uploads.
- Approval is where the owner turns drafts into recorded entries.
What bank reconciliation actually is
Bank reconciliation is the process of comparing what the bank says happened to what your books say happened, then explaining any difference. Agreement supports confidence in the period's cash balance; a difference creates a specific list of items to investigate.
For a small business, reconciliation is a core periodic check. It can surface missed deposits, duplicate entries, unrecorded processor fees, timing differences, or a source line that needs more context before approval.
Reconciliation is not the same as a tax calculation or a financial statement. It is a verification step that supports both.
Related reading: Month-end close checklist
How source activity arrives in the books
Different sources feed the books in different ways. Mercury connects directly, so activity flows in without manual steps. Other U.S. banks do not have that connection, so the owner uploads a PDF or CSV statement for the period.
Payment processors add their own context. Stripe and Whop provide revenue and payout activity to review alongside the bank. Plane provides payroll activity that can be checked against the same period.
Each source produces drafts. The drafts carry a link back to the source line so the owner can verify what each entry represents before approving it.
- Mercury: direct connection.
- Other U.S. banks: PDF or CSV statement upload.
- Stripe and Whop: revenue and payout context.
- Plane: payroll activity for the period.
Related reading: Integrations: Mercury · Integrations
What AI drafts actually do, and what they do not
In Fionas, connector, agent, and ingest activity creates source-linked drafts. That is a specific job: turn source activity into proposed entries that the owner can review. The drafts are grouped, described, and linked to the source line that produced them.
Drafts do not post on their own: posting requires owner approval. A draft is not a guarantee of accuracy or a claim of a perfect match; it is a proposed entry with evidence attached for review.
Treat drafts as a well-organized pile of suggestions. Your job is to read them, check them against the source, and approve only what you are comfortable with.
- Drafts organize source activity into proposed entries.
- Drafts do not post automatically.
- Drafts do not guarantee accuracy.
- Drafts always carry a source link for verification.
Related reading: How it works
Verifying the obvious lines first
Start with lines that look familiar, such as recurring software subscriptions, payroll deposits, or regular vendor payments. Read the draft description and inspect the source line before deciding whether the proposal is ready to approve.
Even for familiar activity, the source link matters. A vendor may use a different descriptor on the bank statement, or the amount may have changed. The source gives you a concrete record to compare rather than relying on recognition alone.
If you review entries in a batch, inspect the lines and their evidence first. The risk is not the batch itself; it is approving proposals you did not actually review.
- Read the draft and the source line.
- Approve familiar entries in batches.
- Watch for vendor name changes and small amount shifts.
- Keep a separate list for anything that needs a second look.
Payment processor timing and fees
Processor payouts can group several transactions into one bank deposit, and the deposit date may differ from the underlying activity. Fees, refunds, reserves, or adjustments can also change the amount that reaches the bank.
When reviewing drafts, compare the bank deposit with the payout detail from the processor. If the components are unclear or the proposed treatment does not match the evidence, flag the draft for review instead of forcing it through approval.
Bookkeeping is about making sure the entries are complete and clearly described; the tax treatment of fees is a question for your CPA.
Related reading: Integrations · Source documents for CPA handoff
Unresolved differences and what to do about them
A reconciliation may leave unresolved differences: a deposit you cannot identify, a payment that has not cleared, or a fee you do not recognize. Put those items in an exception list rather than forcing them into the books.
For each unresolved item, write down what you know and what you still need to find out. Sometimes the answer is in the processor report. Sometimes it requires a quick email to a vendor. Sometimes it is just timing, and the difference resolves next month.
Do not invent entries to make the balance match. A clean reconciliation with a documented open item is more honest than a forced match that hides a problem.
- Keep an exception list for the items that do not match.
- Document what is known and what is still open.
- Do not force a match by inventing entries.
- Document timing differences and ask a qualified professional when period treatment is unclear.
Approval and the close control
Approval is the step that turns drafts into posted entries. After approval, the entries count. The owner explicitly closes a ready period when the reconciliation is complete and the exceptions are either resolved or documented.
Closing the period is what stops new activity from quietly entering a finished month. Without an explicit close, the books stay in a working state, and reports can shift as late drafts are approved.
The closing step is a human decision, supported by a clear workflow. The owner chooses when a period is ready to be treated as a record rather than a workspace.
Related reading: Draft vs. posted entries
Limitations and a calm disclaimer
AI drafts can give the review an organized starting point, but reconciliation still depends on complete source evidence. Direct connections, statement uploads, processor reports, and payroll activity each have their own timing and context. The drafts reflect those differences, and the owner still decides what posts and when a ready period closes.
Fionas is not a CPA, accountant, bank, lender, or tax, legal, financial, or investment advisor. Nothing in this article should be read as a promise of accuracy, completeness, or compliance with any particular law.
Use this guide to structure your review and your conversations with your CPA. The software can organize the work, but the judgment still belongs to you and your advisors.
- Drafts are only as good as the source.
- Each source has its own timing.
- Reconciliation is a human review, not an automatic guarantee.
- Bring your CPA in for tax and accounting conclusions.
Related reading: How it works · Integrations
Reconcile with source-linked drafts
Fionas pulls activity from Mercury directly and from other U.S. banks via PDF or CSV, then waits for your approval before posting. See plans and exports.