How to Do Bank Reconciliation in Xero

If you have multiple bank accounts and credit cards, you can also create one rule within Xero to be applied across several bank accounts and credit cards. The next section in the form relates to the supplier name and this can be entered during the reconciliation, the payee, or new or existing contact. If you want to group all common items rather than have a new supplier for each entry, you can create a new contact to group them.

• If you have access to online banking, then look for the option to export the transactions, which is usually available when you view them as a list.
• Here are the ways to reconcile your accounts using Xero accounting software.
• The status of your bank feed is displayed at the top of your Xero integration page in the Expend dashboard.
• When viewing the dashboard your bank accounts will have a blue link telling you how many items need to be reconciled.
• If you run a current account and a credit card account, you’ll need both statements.

She has owned Check Yourself, a bookkeeping and payroll service that specializes in small business, for over twenty years. She holds a Bachelor’s degree from UCLA and has served on the Board of the National Association of Women Business Owners. She also regularly writes about travel, food, and books for various lifestyle publications.

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This is the first part in a Xero training where I’ll show you how to reconcile your account by creating new transactions. Xero does not provide accounting, tax, business or legal advice. This guide has been provided for information purposes only. You should consult your own professional advisors for advice directly relating to your business or before taking action in relation to any of the content provided. The longer you go without doing it, the longer it will take to catch up.

It’ll also show you how to view your bank reconciliation summary report and delete a bank feed that’s no longer needed. The bank feed will appear in your Xero bank statements after the first sync is complete. To view the bank statement in Xero, go to your Expend Account (under Bank Accounts) and click Bank statements. Any unreconciled transactions on the bank statement will be available on the Reconcile tab, so you can immediately reconcile them as they become available.

Step 1.  Enable “Mark as Reconciled” in Xero

If you want to group all common items together rather than have a new supplier for each entry, you can create a new contact to group them. For example, you do not want a new contact created for each petrol station or taxi firm used. Instead, you can create a rule to be applied to all similar transactions, such as ‘petrol’ or ‘taxis’, and this will group them all together.

If you don’t see a recent transaction, it may be that it has not cleared yet. In Xero, reconciling means reviewing and organizing transactions that have been downloaded from your bank accounts. After https://bookkeeping-reviews.com/how-to-do-bank-reconciliation-in-xero/ you’ve checked all the deposits and withdrawals, your business bank balance should match the totals in your business accounts. This will be the starting point for your next reconciliation.

The New and Improved Xero Bank Reconciliation Report

The create bank rule screen is split into seven sections, with section one specifying the conditions of when the rule should be applied. You must have at least one condition for the bank rule but you can add more if needed. If an existing transaction that relates to the statement line has already been created in Xero, then you just need to match the two. Existing transactions include invoices, bills, and payment transactions. You can use this option to match your bank statement to an existing Xero transaction. Some of the examples of existing Xero transactions are bills, invoices, payment transactions, and expense claims.

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• If you want to group all common items together rather than have a new supplier for each entry, you can create a new contact to group them.
• You can create bank rules from the bank account page, from the bank reconciliation itself and also from the cash coding page in the bank statement.
• These matches are made by comparing all the information in the statement line against all the information in the account transaction.
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Start by downloading a CSV statement of your transactions from the Expend dashboard. The fields in the CSV file are ordered and formatted according https://bookkeeping-reviews.com/ to Xero’s requirements. The status of your bank feed is displayed at the top of your Xero integration page in the Expend dashboard.

It then gives you the option to apply it to more than one account. This saves you from having to set the rule up for each account. The final step is to give the bank rule a title, and the title will appear every time Xero suggests the rule during the bank reconciliation process. All you have to do in the bank reconciliation screen is click ‘Ok’ to confirm and the item is then reconciled with a bank journal being posted in the background. If you’re unable to set up a bank feed to import bank statements automatically, you can enter the bank transactions into Xero yourself.

If you haven’t imported a statement or added transactions to a bank account, you can delete it—but keep in mind that action is permanent and can’t be undone. If you have transactions in an account that you no longer use, you’ll need to archive the account rather than delete it. Once your statement has been imported, you can follow the above steps for reconciling a bank feed to proceed with the account reconciliation.