An invoice that still shows as open while the client paid long ago costs you a needless reminder and an awkward conversation. The other way round, an invoice marked paid without the money in your account is a hole in your records. Matching, linking every payment on your bank statement to the invoice or cost it belongs to, solves both. In this article you read which file to get from your bank, how to read it in step by step and how to handle the tricky cases.
What exactly is matching?
Matching means you link every line on your bank statement to the document it belongs to. An incoming payment belongs to a sales invoice, a withdrawal to a purchase invoice or expense, and a transfer between your own accounts belongs nowhere and is left out. The result: your invoice list shows what is truly paid, what is still open and which costs have already left your account. Matching is not the same as bookkeeping or filing a VAT return; it is the check that your records and your bank tell the same story.
Which file do you get from your bank?
Most banks offer several formats. CSV works everywhere and is enough for most freelancers. MT940 and CAMT.053 are bank standards that also pass the counterparty account number and the payment reference in a structured way, which makes matching more reliable. Which formats you see differs per bank and per type of account, so look in your bank’s download menu. A PDF statement is made for reading, not for reading in. Take a clearly defined period, such as a month or a quarter, and let the periods connect exactly so that no day is missing.
Import a bank statement in 6 steps
Step 1: Download the statement
In your banking environment choose a period and a format: preferably CAMT.053 or MT940, otherwise CSV.
Step 2: Upload the file
Drag the file into your invoicing tool. SmartWerk recognises ING, Rabobank, ABN AMRO, bunq, Knab, ASN Bank, SNS, RegioBank, Triodos, Revolut and Wise by itself.
Step 3: Check the summary
See whether the period, the number of rows and the totals in and out agree with your banking app, and whether the IBAN belongs to the right account.
Step 4: Import
The same file is never read twice. If the same payment appears in another file, you get a notice of a possible duplicate row.
Step 5: Match the clear-cut payments
Payments with your invoice number in the description and the exact amount are matched in one go. Look at the list before you confirm.
Step 6: Finish the rest by hand
For every remaining row find the invoice, split or ignore the row, then lay your list of open invoices next to your bank.
When is automatic matching safe?
Only when two things agree: the invoice number is in the description and the amount is exactly the open amount. If just one invoice fits, the chance of a mistake is very small. As soon as a payment can concern several invoices, or the amount differs, a person should choose. That prevents a payment from quietly landing on the wrong invoice.
How do you handle tricky payments?
Clients do not always pay the way your invoice expects. They pay two invoices in one transfer, keep back bank costs or a discount, leave out the invoice number or pay from a different account than the one on the invoice. The table below gives the approach per situation. The common thread: never match on a hunch but on amount, client and reference, and keep a part payment visible as a part payment.
Do not forget the costs
Withdrawals belong to matching too. A paid supplier you link to the purchase invoice or the expense, so it no longer counts as open. Recurring costs such as a subscription, rent or insurance you capture with a fixed rule, so new statements handle them by themselves. Private spending and transfers between your own accounts you ignore; they are not business costs.
Tricky situations and what you do
| Situation | Approach |
|---|---|
| One payment for two or more invoices | Split the amount over the invoices; what is left stays as an amount not yet matched. |
| Client pays too little | Match the amount as a part payment; the invoice stays open for the remainder. |
| Payment without invoice number | Search by client and amount and match the invoice yourself. |
| Same payment in two files | Mark the duplicate row and match only one; do not count twice. |
| Transfer between your own accounts | Ignore the row: it is neither revenue nor a cost. |
| Recurring withdrawal, such as a subscription | Turn it into an expense or set a rule for the coming months. |
- Let periods connect instead of overlapping.
- Import each file once; a second time is recognised and refused.
- If the same payment is in a CSV and in an MT940, it is flagged as a possible duplicate.
How does SmartWerk fit in?
In SmartWerk you drag the statement to Bank, see the recognised bank and the summary, and import. After that you see what still needs matching, with suggestions based on invoice number, amount and client. You can split a payment over up to ten invoices, undo a match, set rules for recurring withdrawals and hand your bookkeeper the bank lines with their matches in the bookkeeper package. An automatic bank connection through PSD2 is in development and coming soon; until then you import a file yourself.
Your fixed matching routine
Import at a fixed moment
Pick a rhythm, for example the first working day of the month or after each quarter.
Clear-cut payments first
Let the obvious cases be matched in one go and go through the rest by hand.
Lay open invoices next to the bank
If an invoice is still open while the client paid, a match is missing.
Include costs and own transfers
Match costs, ignore private spending and transfers between your own accounts.
Hand it over at year end
Give your bookkeeper the bank lines with their matches instead of loose screenshots.
- SmartWerk is not bookkeeping software: bank lines are not posted to ledger accounts and no VAT return is filed from the bank.
- PDF statements are not read; use the CSV, MT940 or CAMT.053 file from your bank.
- An automatic bank connection through PSD2 is in development.
Frequently asked questions
What is the difference between CSV, MT940 and CAMT.053?
CSV is a simple table that every bank provides. MT940 and CAMT.053 are standards for bank statements: they pass the counterparty account number and the payment reference in a structured way, so software links payments to invoices more reliably. If you have the choice, take CAMT.053 or MT940.
How often should I import my bank statement?
A fixed rhythm works best: monthly or quarterly. The more often you import, the sooner you see which invoices are still open and the less you have to match in one go.
What do I do when a client pays several invoices at once?
Split the payment over the invoices. If the total does not agree with the invoices, match the part you are sure of and leave the rest as an unmatched amount until you know where it belongs.
Can I import the same statement twice by accident?
Not in SmartWerk: the same file is never read twice. If the same payment is in another file or format, it is flagged as a possible duplicate so you do not count it twice.
Is matching the same as bookkeeping?
No. Matching checks which payments belong to which invoices and costs. Bookkeeping, such as posting to ledger accounts and the VAT return, goes a step further. A bookkeeper does build on well-matched records.
Is there an automatic connection to my bank?
Not yet. You download a statement yourself and upload it. An automatic bank connection through PSD2 is in development and coming soon.