How to reconcile a bank statement with invoices and expenses
To reconcile a bank statement with invoices and expenses, gather the documents and statement for the same period, check the transactions and link each outflow to its supporting document or explanation. Review automatic matches and separate amounts still needing documentation from amounts still awaiting payment. Finally, send your accountant the originals, the statement and a specific list of outstanding items.
In this guide
What does reconciling a statement with expenses mean?
In this guide, reconciliation means explaining bank outflows through documents and links that can be checked. You can do this in a spreadsheet or an app. The useful result is knowing which transaction, which document and how much remains unresolved.
| Term | What it represents |
|---|---|
| Bank transaction | An inflow or outflow recorded on the statement, with a date, description and amount. |
| Invoice | The document identifying the purchase of goods or services. |
| Receipt | A document confirming payment; it does not replace an invoice where one is required. |
| Match | The link between a transaction and a document, for the amount allocated to that payment. |
| Partial | A match that does not yet explain the transaction’s full amount. This differs from a partly paid invoice. |
| Outstanding item | An amount or transaction still needing a document, explanation or confirmation. |
Checking expense documents does not replace reconciling bank balances with the accounting records, which should be done with your accountant.
Does a bank statement replace an invoice?
No. The statement provides evidence of money moving, but does not, by itself, describe the purchase behind it. Article 23(3), (4) and (6) of the CIRC, Portugal’s corporate income tax code, requires documentary evidence of the expense and an invoice where the supplier is required to issue one.
For VAT, article 19 of the CIVA, Portugal’s VAT code, also sets documentary requirements for deduction. Marking a row as reconciled does not determine whether an expense or its VAT is deductible. That treatment depends on the transaction, the documents and the applicable rules.
Not every outflow is a purchase: a transfer between the company’s own accounts, for example, needs an explanation but does not correspond to a supplier invoice. For tax criteria, see the guide to deductible expenses under IRC; for keeping originals, see where to store company invoices.
How should I prepare invoices and a PDF or CSV statement?
- Choose the account and period. Download the original statement from your bank. If you use several accounts, identify each and work on one at a time.
- Gather the documents. Collect invoices and receipts received by email or on paper. Include documents from other months that relate to payments in this period.
- Check the imported data. Compare dates, amounts, currency and the transaction count with the original statement. In a PDF, do not confuse the account balance with a transaction amount; in a CSV, confirm what the credit and debit columns mean.
- Avoid counting transactions twice. Statements for overlapping periods may contain the same transactions. Check the account, dates and amounts before treating two rows as two payments.
- Prepare an outstanding-items list. Include the date, description, amount, linked document, unresolved amount and next action. This is more useful than an email saying only that some invoices are missing.
How do I link each payment to the right document?
Start with simple cases: one payment and one invoice with the same amount and currency, nearby dates and a compatible supplier. Check the original and the transaction reference. An identical amount is a clue, not enough to identify the purchase.
Then handle the cases that need splitting:
- One payment for several invoices: link each document for its amount and check that the total explains the entire payment.
- Several payments for one invoice: link each payment for the amount paid. Do not allocate the full invoice total to every transaction.
- Fees or differences: find the document or explanation for the difference. Do not force the totals to make an outstanding item disappear.
- Different currencies: keep the original amounts and currencies identified; check the exchange rate and fees before comparing them.
In Limitada, automatic matching links only unambiguous cases: an outflow and a confirmed expense with the same amount and currency, dates within five days and a single candidate on each side. The supplier is not checked. Review these matches; other cases need a manual match or explanation.
Worked example: five outflows, two outstanding items and an unpaid invoice balance
This fictional example uses euros and a single account in September 2026. The amounts are document totals; no VAT calculation or deductibility decision is made.
| Date and bank outflow | Document or explanation | Amount linked to invoices | Unresolved amount | Next action |
|---|---|---|---|---|
| 18 Sep: software, €39.90 | Invoice for €39.90, issued on 17 Sep | €39.90 | €0 | Check the match and supplier. |
| 21 Sep: supplier, €300 | Invoice for €450; this is the first payment | €300 | €0 | Record that €150 of the invoice remains unpaid. |
| 23 Sep: materials purchase, €180 | Only an invoice for €120 has been found | €120 | €60 | Ask the supplier what the difference covers. |
| 25 Sep: purchase, €75 | Document not yet found | €0 | €75 | Request the invoice and confirm the transaction. |
| 28 Sep: transfer, €400 | Transfer to another account belonging to the same company, confirmed on that account’s statement | €0 | €0 | Keep the link between both transactions as the explanation. |
The outflows total €994.90. Of this, €459.90 is linked to invoices and €400 is the confirmed internal transfer. That leaves €135 unresolved, with two actions: explain €60 and obtain the document for €75.
The €150 still unpaid on the €450 invoice is a separate matter: it does not represent an undocumented debit on this statement. The €300 payment is already fully explained by the invoice.
If another invoice for €60 and the €75 invoice arrive, link them to the corresponding transactions. If the €60 was an error or an incorrect charge, keep the explanation and the treatment agreed with the supplier and accountant. Do not invent a document to close the gap.
What should I do with transactions still needing reconciliation?
Give each outstanding item an action someone can carry out:
- Missing document: request it from the supplier with the payment date, amount and reference; keep their response with the case.
- Unclear description: check the transaction details at the bank and confirm with whoever made the purchase.
- Grouped payment: request the list of included invoices and allocate the amount to the right documents.
- Internal transfer: confirm the other account and corresponding transaction; do not create an expense for simply moving money.
- Personal or unknown transaction: identify it and ask the accountant to decide its treatment. Ignoring a transaction in an app does not correct it at the bank or settle its accounting treatment.
- Refund: preserve the incoming transaction and the credit note or other corresponding document. Do not delete the original purchase to make the amounts match.
A justification in the app records the explanation; it does not automatically make an expense tax-deductible. Keep the supporting evidence and unresolved cases visible.
How does this work in Limitada?
Upload invoices and receipts as PDF, JPG or PNG, or forward them to the company’s dedicated email address. Check the extracted data against the original and confirm the expenses. Then upload the PDF or CSV statement on the Reconciliation page and check the imported transactions.
Review automatic matches and open unresolved cases to link documents, adjust the amount of each match or add the appropriate explanation. See the supported formats and full workflow on the expenses page.
- Free plan: 10 expense extractions per month.
- Pro plan, €10/month: statement import and reconciliation, with 100 monthly extractions shared between expenses and statements. Reconciliation is also included in the Max plan.
- Accountant sharing: dedicated access from the Starter plan; access to reconciliation requires the Pro or Max plan.
What should I send my accountant at the end of the month?
Send the documents and an explanation of the matches. Screenshots or a total without detail are insufficient. Agree on the period and delivery method with your accountant.
- Original statement, with the account and period identified.
- Original invoices and receipts, labelled so each document can be found.
- Expense summary, with supplier, date and amount for checking.
- Matches and partial payments, showing how much of each transaction belongs to each document.
- Outstanding-items list, keeping the example’s €60 and €75 separate, with the next action for each.
- Other explanations and evidence, such as the internal transfer and refund transactions.
In Limitada, you can export expenses as a ZIP containing the original documents and a CSV summary on any plan. Also provide the original statement and prepare the outstanding-items and matching lists separately; the expense export is not a complete reconciliation report.
The aim is for your accountant to trace each outflow to its document or explanation and know exactly which cases still need a decision.
Frequently asked questions
Does a bank statement replace an invoice?
No. The statement records the movement of money; the invoice documents the purchase. For purchases where the supplier must issue an invoice, article 23(6) of the CIRC requires that document. A reconciliation link does not, by itself, determine whether the expense or VAT is deductible.
How do I handle a partial invoice payment?
Link only the amount actually paid to the bank transaction. For a €450 invoice with a €300 payment, that transaction can be fully reconciled while the invoice still has €150 unpaid. When another payment arrives, link it to the same invoice without counting the previous amount again.
What should I do with a payment that has no document?
Identify the transaction and ask the supplier for the document, giving the payment date and amount. If it was not a purchase, gather the appropriate explanation and evidence, such as both transactions for a transfer between the company's accounts. Keep unresolved cases on the outstanding-items list for your accountant.
Do I need to connect my bank account to Limitada?
No. Download the statement from your bank and upload the PDF or CSV file. Expense extraction is available on the Free plan, with 10 extractions per month. Statement import and reconciliation are included in the Pro and Max plans.
Sources
Manager-partner of a Portuguese Lda for over a decade; built Limitada to stop juggling Google Drive and his accountant's inbox.
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