Free License - Bank Statement Parsing

This article explains how Account Reconciliation parses bank statement files to extract transaction data for reconciliation matching.

What is Parsing?

Parsing is the process of reading and extracting structured data from uploaded bank statement files. When you upload a bank statement, the system automatically:

1. Identifies the file format (PDF, CSV, or Excel)
2. Locates transaction tables within the file
3. Extracts transaction details (dates, descriptions, amounts)
4. Extracts the closing balance (when available)
5. Prepares the data for AI-powered matching against GL transactions

The parsing process runs automatically when you upload bank statement files to a reconciliation. No manual configuration is required.

Supported File Types

Account Reconciliation supports the following bank statement formats:

Parsing Rules

When multiple bank statement files are uploaded, the system applies a file precedence order to determine which file is used for parsing.

Rule 1: File Precedence Determines the Source of Parsed Data

The system always uses the highest-precedence file type available:

• CSV

• Excel

• PDF

Once a file is selected based on precedence, both transaction data and the closing balance are extracted from that file only.

Rule 2: Transactions and Closing Balance Come from the Same Source

The system does not combine transaction data from one file and the closing balance from another file.

If the highest-precedence file contains transaction data but does not contain a closing balance, the system uses the transaction data from that file and does not attempt to retrieve the closing balance from a lower-precedence file.

Rule 3: Lower-Precedence Files Are Not Used as Fallback Sources

The system does not use lower-precedence files to supplement missing information.

• If a CSV file is uploaded, both transactions and closing balance are taken from the CSV when available.

• If an Excel file is the highest-precedence file available, both transactions and closing balance are taken from the Excel file when available.

• If a PDF file is the only uploaded file, both transactions and closing balance are extracted from the PDF.

Rule 4: PDF Files Are Used Only When They Are the Highest-Precedence Source

PDF files are parsed only when no higher-precedence CSV or Excel file is available.

The system does not use a PDF file to supplement missing transaction data or closing balances from a higher-precedence file.

Examples:

• CSV and PDF uploaded: The system uses the CSV file only.

• Excel and PDF uploaded: The system uses the Excel file only.

• PDF only uploaded: The system uses the PDF file for both transaction data and closing balance.

• CSV uploaded without a closing balance, and PDF uploaded with a closing balance: The system uses the CSV file only. The PDF closing balance is not used.

Note: The system treats the selected highest-precedence file as the single source of truth for both transaction data and closing balance extraction.

Parsing Workflow Scenarios

The following table explains how the system handles different file upload combinations:

Multi-Page PDF Parsing

Multi-page PDF parsing is the system's ability to process bank statements that span multiple pages within a single PDF document. Many bank statements, especially for accounts with high transaction volumes, extend across several pages. Account Reconciliation reads and processes all pages in a PDF file as a unified document, extracting transaction data regardless of which page it appears on.

When processing multi-page PDF files, the system:

• Analyzes all pages within the document
• Identifies transaction tables across pages
• Extracts transaction dates, descriptions, and amounts
• Consolidates data from all pages into a single transaction set
• Triggers AI matching against GL transactions

Best Practices for PDF Files

To ensure optimal PDF parsing results:

• Use electronically generated PDFs — These contain embedded text data that the system can read directly. Scanned documents may require OCR which can introduce errors.
• Avoid password-protected files — The system cannot access protected files and will return an error status.
• Match the statement period to the reconciliation period — Period mismatches can cause incorrect data alignment and parsing failures.
• Use original bank-generated PDFs — Third-party modified PDFs or statements exported from other applications may have non-standard formatting.