One of the Zoho’s core applications, Zoho Books, got a few nice updates for its Banking module this February which we want to highlight.
1. AI-assisted Reconciliation (Early Access as of 02/17/2026)
Reconciliation is important, but it doesn’t have to be done manually. Zoho Books now uses an AI assistant to make bank reconciliation easier. Before, users had to enter key details like categories, accounts, and vendors by hand, even though transaction dates and amounts were already filled in.
The AI-powered Field Prediction suggests values based on your past transactions. If there’s no previous data, it looks at the bank statement to make accurate guesses. This cuts down on manual data entry and speeds up reconciliation, which is especially helpful for finance teams handling lots of transactions across several accounts. As of today, the AI-assisted reconciliation is in early access stage and needs to be requested to be enabled by the Zoho Books support.
2. Centralized Bank Rules for Consistent Categorization
Managing bank rules across multiple accounts is now easier. Users can create a rule once and apply it to multiple banks, accounts, or cards, eliminating the need to repeat the process.
This saves setup time and ensures consistent categorization across accounts, making reconciliation cleaner, faster, and more scalable as your business grows.
3. Faster Bulk Categorization with Quick Categorize
High transaction volumes should not slow reconciliation. The new Quick Categorize feature in Zoho Books enables faster, intuitive bulk categorization, letting users categorize up to 50 bank transactions at once in a spreadsheet-like view.
For example, transactions from “Verizon” can be categorized as Telephone Bills and those from “Shell” as Fuel simultaneously.
Transactions can be filtered by deposits, withdrawals, or date range, and grouped by payee or date. Users can merge multiple transactions into a single entry to maintain clean, organized records. With AI-powered categorization and keyboard shortcuts, Quick Categorize helps teams process large volumes much faster.
4. More Structured Deposit Recording
Zoho Books now makes it easier to record deposits from the Undeposited Funds account. Instead of adding up totals and making separate bank entries by hand, users can simply pick the payments they want to include when recording a deposit.
Zoho Books automatically adds up the total and keeps track of all the payments included, which helps reduce mistakes and saves time. Plus, users can filter transactions by currency when recording deposits, making things easier for businesses that deal with multiple currencies.
5. More Flexible Reconciliation Status Reporting
The new Reconciliation Status Report helps finance teams spot discrepancies quickly by clearly showing matched and unmatched transactions. It used to be available only as a PDF, but now you can also export it as a CSV file (finally!) This change makes it easier to customize the data, add columns, rearrange rows, or dig deeper into the analysis. It gives teams more flexibility and clearer insights into their reconciliation work.
6. Corporate Cards Reconciliation Support
Reconciliation now includes corporate cards. Corporate cards configured in Zoho Expense are now available in Zoho Books for reconciliation, helping organizations ensure that card transactions and balances stay in sync.
While reconciling, users can now apply a new filter to highlight transactions that are matched in Zoho Expense but are pending reporting or approval in Zoho Books. This improves visibility into in-progress expenses and supports confident reconciliation of corporate card activity.
7. Bank Feeds: Better and More Flexible
Zoho Books now gives you more flexibility and better coverage for bank feeds. Besides manual and automatic imports, you can now fetch up to one year of bank feeds through Plaid, if available, instead of just 90 days. This is especially helpful when switching from another accounting platform or setting up past records.
Bank feed coverage has grown in Mexico as well. Thanks to Syncfy, Zoho Books’ third-party banking provider, businesses can now connect Mexican bank accounts and credit cards directly and automatically fetch their feeds.
Importing statements is easier now, too. PDF import support has been added for certain banks in the US, Canada, and Mexico. Plus, Zoho Books now supports the MT940 file format, making it easier for users around the world to import statements. To help you catch discrepancies faster, bank statement transactions now show a running balance. This gives you real-time clarity and makes it easier to spot errors during reconciliation.
8. User-Level Bank Account Segmentation
As teams get bigger, controlling who can access what is just as important as automating tasks. Zoho Books now lets businesses limit access to certain bank accounts by user. Only the right people—like employees, accountants, or consultants—can see the accounts they need for their work. This helps improve internal controls, boosts data security, and makes it easier to hold teams accountable.
Zoho Books Banking Works the Way Your Business Does
All these enhancements make the Zoho Books Banking module a smarter, more automated foundation for your accounting workflows, beyond simple transaction tracking. By reducing manual effort, improving accuracy, and enhancing control, Zoho Books lets businesses spend less time reconciling and more time on growth.
That’s all for today! Stay tuned. More curated Zoho Books content is available at our Zoho Books Resources collection and Zoho Books Training Videos section.