What eTIMS reconciliation actually means
eTIMS reconciliation is the reconciliation of two records: (1) the invoices you issued and recorded in eTIMS, and (2) the payments and transactions in your bank account and cash register. It is also the third side of the triangle: (3) the invoices you received from suppliers, matched against your expense claims.
The goal is simple: by the end of each day, each week, and each month, you should have no ambiguity about which invoices were issued, whether KRA received them, and whether the amounts match your bank statement and your tax records.
In practice, reconciliation is where many small businesses slip out of compliance unintentionally. A batch of invoices queues offline. The internet comes back and you assume they transmitted, but they did not. Days later, KRA shows a gap in your sales record. Or you claim an expense on a handwritten supplier note, but later cannot find the actual eTIMS invoice to back it up. Or you issue a refund to a customer and issue a credit note, but the credit note never made it to KRA.
A shop doing 100 invoices a day has 3,000 invoices a month. Manually reconciling 3,000 invoices is a job that never gets done, and that is exactly why most small businesses have reconciliation gaps.
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Sign UpThe eTIMS reconciliation workflow, step by step
This is how reconciliation should work, and what a modern system should automate for you.
- 1
Daily: Check your invoice queue
Each morning, log into your POS and check whether any invoices are still in the queue (not yet transmitted to KRA). If more than a handful are stuck, something is wrong with your internet or the system. Do not wait until month-end to discover this.
- 2
Daily: Reconcile your till to your payment methods
Cash in hand should match cash invoices issued. Card payments should match card invoices. M-Pesa payments should match M-Pesa invoices. Any variance (fraud, error, refund) should be documented immediately.
- 3
Weekly: Download your eTIMS report from KRA
KRA provides a report showing every invoice you transmitted that week. Download it and scan for gaps. If you issued 500 invoices and only 480 appear, you have a problem to solve before it cascades.
- 4
Weekly: File supplier invoices as received
Do not wait until tax season to collect invoices from suppliers. File each one as it arrives, tag it with an expense category, and cross-check the amounts against your purchase orders.
- 5
Monthly: Reconcile your tax return figures to eTIMS
Before you file your VAT or income tax return, run a report from eTIMS showing total sales and total purchases. Declare exactly what eTIMS shows. Any adjustment (write-off, discount, refund) should be backed by documentation.
- 6
Monthly: Reconcile credit notes and refunds
Every refund you issue should generate a credit note in eTIMS. File these separately and reconcile them against your cash refunds so you know exactly how much was returned and when.
- 7
Quarterly: Audit-trail walk-through
Pick a week and trace five random invoices from your register through eTIMS through your bank statement. Every invoice should have a receipt, a KRA timestamp, and a payment match. If one is missing, find out why.
Six reconciliation mistakes that hide compliance gaps
Assuming offline invoices transmitted when they did not
You issue 300 invoices offline. Power returns. You assume KRA received them, but your system never queued them for transmission, or the transmission failed. You do not check for three weeks and by then KRA is flagging missing invoices from a month ago.
Not checking the KRA weekly report
KRA publishes a report of every invoice received from you. Many shop owners never download it, so they do not know that 200 invoices from the last week are missing. If you waited until the VAT return, you would have been blindsided.
Treating cash sales differently from card sales
A shop owner issues an eTIMS invoice for every card transaction but hands out plain receipts for cash. This creates a two-class system: card sales are reconciled to KRA, cash sales are not. KRA notices the pattern.
Accepting non-compliant supplier invoices and hoping to match them later
A supplier hands over a handwritten delivery note for KES 50,000 of goods. The shop owner files the note and claims the expense, assuming they will get a proper invoice later. Later never comes, and an uncorroborated KES 50,000 claim sits in their return.
Issuing a refund without a credit note
A customer is unhappy with goods. You refund their cash but do not issue a credit note in eTIMS. Your eTIMS record shows a sale that was never completed, and your cash register is short by the refund amount.
Not reconciling month-to-month
A shop owner thinks reconciliation is something you do at year-end. By then, months of small gaps have accumulated, and it is impossible to remember which invoices failed or where discrepancies came from.
A reconciliation walk-through: a Nairobi salon
Take a salon with two chairs, issuing about 20 invoices a day, roughly 600 a month. On Monday morning the owner checks the Veira POS and sees 0 invoices in the queue, which means everything from the weekend transmitted. Then the KRA weekly report, cross-checked: all 120 weekend invoices are in KRA's system. Good.
Next, the previous Monday's payment reconciliation. That day the salon rang up 20 card payments, 8 M-Pesa payments and 5 cash payments. The card register shows 20 card transactions. The M-Pesa statement shows 8 deposits. The till holds the cash it should. All three match, and the daily variance of zero goes in the reconciliation log.
On Friday, before the VAT cutoff, an eTIMS report for the week shows 598 invoices issued and received by KRA. The bank statement and the M-Pesa total add up to what those invoices should have totalled. The VAT return can now be filed against numbers that were checked rather than assembled.
The change this makes is in timing: ten minutes on a Friday rather than six hours at year-end. And a weekly check catches what a yearly one cannot. In this illustration, month two shows 580 invoices in KRA's report against 600 issued. Traced the same week, the cause is findable: the internet dropped on Thursday afternoon and the offline queue never transmitted when it returned. Twenty invoices get reissued and the records stay clean. The same gap found during an audit two years later is a very different conversation, about invoices nobody can now reconstruct.
Trading without eTIMS-compliant tax invoices risks KRA penalties, blocked VAT input claims for your customers, and receipts a business buyer cannot expense.
Veira signs every sale to KRA eTIMS automatically, so each receipt is compliant the moment it prints, with no separate device to reconcile.
How Veira automates eTIMS reconciliation
Veira does most reconciliation work for you automatically. Every invoice is timestamped, signed with a control unit, and transmitted to KRA the moment internet is available. You can see at a glance how many invoices are pending transmission and get a notification if any get stuck for more than an hour.
Weekly, Veira can pull a report matching your issued invoices against what KRA confirms receipt of. Any gap is immediately visible. Payments are matched automatically to invoices, so you can see which sales are cash-in-hand and which are pending deposit. Refunds and credit notes are issued in eTIMS, not as cash-only transactions, so your records stay complete.
At tax time, Veira generates a summary showing every invoice issued, total income, total expenses by category, and a reconciliation report. You can file your return directly from these numbers, knowing they match exactly what KRA has on record.
Frequently asked questions
How often should I reconcile my eTIMS records?
What should I do if invoices are stuck in my queue?
How do I handle a refund in eTIMS?
Can I claim expenses without an eTIMS invoice?
What if my internet is down for days?
How does KRA's weekly report help reconciliation?
eTIMS reconciliation is tedious, but it is not optional. A daily check of your queue, a weekly download of the KRA report, and a monthly review before filing will catch problems before they become penalties. Veira automates the hard parts-queueing, transmission, matching-so reconciliation becomes a 10-minute review, not a 6-hour nightmare. Start small, reconcile weekly, and stay ahead of KRA's expectations. Your tax bill will thank you.
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