The verdict in three sentences
In a 90-employee SME with four banks and 2,500 transactions a month, manual reconciliation takes about 3 days of finance time every month. A custom automation combining matching rules, AI suggestions and an ERP connection through open banking APIs costs 5,200 to 13,000 GBP excluding VAT and deploys in 4 to 6 weeks. Once the rules are tuned, 85 % of lines match with no human touch and month-end close gains two days.
The available options and what they cost in 2026
Bank reconciliation ticks every box of a task worth automating: high volume, repetitive rules, structured data. In SMEs, the bottleneck usually comes from a native module that only handles part of the cases (bulk payments, aggregated Direct Debits, card receipts net of fees, BACS batches covering several invoices).
| Option | 2026 cost (order of magnitude) | Set-up time | Lines matched automatically |
|---|---|---|---|
| Manual reconciliation in Excel | no software cost | none | 0 % |
| Native accounting software module | included, 900-2,600 GBP configuration | 1-2 weeks | 40-60 % |
| SaaS treasury or reconciliation tool | 260-1,300 GBP per month | 4-8 weeks | 60-80 % |
| Custom automation with rules + AI | 5,200-13,000 GBP, then 70-220 GBP per month | 4-6 weeks | 80-90 % |
| Outsourcing to the accounting firm | 350-780 GBP per month | 2 weeks | depends on the firm |
Custom work makes sense when your flows have quirks that standard tools handle poorly: several entities, customers paying invoices in instalments, cheques still common in some sectors, or an industry ERP that treasury tools cannot feed.
Inside a 5,200 to 13,000 GBP project
| Component | Cost (GBP excl. VAT) | Role |
|---|---|---|
| Open banking connectors for 4 banks | 1,300-3,000 | daily statement retrieval through an FCA-authorised provider |
| Matching rules engine | 1,300-3,500 | amount, reference, payer account, tolerance |
| AI suggestions on ambiguous cases | 1,300-3,000 | proposes the most likely invoice with a confidence score |
| ERP integration (entries, open invoices) | 900-2,600 | reads documents, writes approved matches |
| Dashboard and audit trail | 400-900 | unmatched items, variances, approval history |
| Aggregator subscription and hosting | 70-220 per month | recurring running cost |
The audit trail is what reassures your auditors: every automatic match keeps the rule applied, and every AI suggestion approved by an accountant keeps the approver's name and timestamp. The AI never matches on its own below a confidence threshold you set, for example 95 %.
Before and after: what changes for the team
| Indicator | Before | After 3 months |
|---|---|---|
| Monthly reconciliation time | 24 hours | 7-8 hours |
| Lines handled manually | 2,500 | 350-400 |
| Month-end close | working day 10 | working day 7 or 8 |
| Unmatched items older than 30 days | 60-90 lines | 10-20 lines |
| Cash visibility | weekly | daily |
The first three weeks are a learning period: you measure unmatched lines, add rules (recurring Direct Debit descriptions, card fees, expense refunds), and the rate climbs gradually from 60 % to 85 %.
Mini case study
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Thomas, CFO of a hypothetical 90-employee distribution SME in London, assigns an accountant three days a month to reconciliation, 24 hours in total. After automation, about 8 hours of review remain, so 16 hours saved a month and 192 hours a year. At a loaded cost of 38 GBP an hour, savings reach about 7,300 GBP a year. For an 8,700 GBP project with 130 GBP a month in running costs, payback comes in roughly 16 months, before counting the two days gained on close and faster detection of late payers.
FAQ
Is access to bank APIs secure?
Yes, UK open banking rules require an FCA-authorised provider and strong customer authentication renewed every 90 days. The tool reads statements, it cannot initiate payments.
Do we need to change ERP to automate?
No. The project plugs into your existing ERP through its API or file import and export. Count 900 to 2,600 GBP of integration depending on how open your software is.
What happens to the remaining 15 % of lines?
They land in a work queue with the AI's suggestion. An accountant approves in one click in most cases, 1 to 2 minutes per line instead of 5 to 8.
Will our auditors accept automatic matching?
Yes, provided there is a complete audit trail: rule applied, date, approving user. It is a standard project deliverable, planned from scoping.
How long before reaching 85 %?
Usually 6 to 10 weeks after go-live, enough to observe two month-end closes and add 20 to 40 rules specific to your flows.
Let's scope your project. Tell us your banks, your ERP and your monthly transaction volume: we will price connectors, rules and AI suggestions on a 4 to 6 week plan. Detailed quote within 48 h. WhatsApp +221 77 596 93 33.
Mohamed Bah
Fondateur, Kolonell
Passionate about digital and entrepreneurship in Africa, Mohamed has been helping Sénégalese businesses with their digital transformation since 2020. Founder of Kolonell, he believes every SME deserves a professional and accessible online présence.
