Tally ERP 9 and Tally Prime include a built-in bank reconciliation module, but it requires transactions to already exist in your Tally ledger before reconciliation can run. Most small businesses in India enter bank transactions manually — a slow process prone to data entry errors.
Importing your bank statement directly creates the ledger entries automatically, allowing reconciliation in minutes rather than hours. It also eliminates transcription errors in amounts and dates.
Tally supports importing data in its proprietary XML format. The cleanest workflow for bank statements is:
The alternative — exporting to Excel, reformatting manually, and using an ODBC connector — is more complex and error-prone. The XML method is strongly preferred.
Upload your PDF at bankstatementengine.com and select Tally XML as the export format. The converter extracts all transactions and formats them as Tally vouchers with the correct debit/credit entries against your bank ledger.
Before downloading, enter the exact name of your bank ledger as it appears in Tally (e.g., "HDFC Bank A/C" or "SBI Current Account"). The XML must reference the exact ledger name or Tally will create a new ledger on import.
Open Tally Prime or Tally ERP 9. Go to Gateway of Tally → Import Data → Vouchers. Browse to your downloaded XML file and click Import. Tally will show a summary of vouchers created, modified, and errors.
Go to Gateway of Tally → Display → Account Books → Bank Book. Select your bank ledger and the date range of your statement. Confirm the opening balance, closing balance, and transaction count match the original statement.
Tally Prime vs ERP 9: The import path is the same for both versions. Tally Prime shows a more detailed import summary; ERP 9 shows a simpler count. The XML format exported by Bank Statement Engine is compatible with both.
This method uses Tally's ODBC interface to push data from an Excel spreadsheet. It's more complex and generally only used when you already have data in Excel from other sources.
This method requires a third-party utility or custom VBA macro. The XML method is simpler for most users.
After importing, your bank ledger entries exist in Tally. To reconcile:
If the difference is non-zero after matching all transactions, check for: an incorrect opening balance, a missed transaction, or a data entry error in an amount.
Free, works with HDFC, ICICI, SBI, Axis, Kotak and 10,000+ banks.
Convert Free →Yes — the XML file is imported the same way regardless of whether Tally runs locally or on a hosted server. You'll need to upload the XML file to the hosted environment first (via Remote Desktop or the hosting provider's file manager), then run the import from within Tally.
Yes. Upload a multi-month statement PDF and the converter will extract all transactions. The Tally XML will contain vouchers spanning the full date range. Tally imports them all in one go.
This happens if the bank ledger is configured as a Bank Account (asset) but the XML is formatted for a liability ledger, or vice versa. In Tally, check Accounts Info → Ledgers → Alter for your bank account and confirm the group is set to "Bank Accounts" under Current Assets. Contact support if the issue persists after checking the ledger group.
Yes. Bank Statement Engine populates the Narration field with the transaction description and, where the bank statement includes reference/cheque numbers, those are included as well.
Tally does not automatically detect duplicates on XML import — it will create new vouchers even if identical ones exist. Avoid importing the same date range twice. If you do, delete the duplicate vouchers via Day Book → select date range → delete duplicates.
Related: Bank Statement to Tally XML · Import Bank Statement in Tally Prime · Excel to Tally