Bank reconciliations 2017-01-12T16:58:03+00:00

Bank Reconciliation

Once you have set up your bank feeds, all of your receipts and payments from your bank statements will appear in your Xero reconciliation. Xero automatically matches transactions in Xero with statement lines where it can.

Matched transactions

Xero will match the following transactions:

  • Cash receipts will be matched with sales invoices raised in Xero
  • Cash payments will be matched based on your bank rules or with purchase invoices recorded in Xero

If Xero has matched the statement line with the correct transaction in Xero, click OK to accept the match and reconcile.

Bank reconciliation

Sometimes Xero finds more than one Xero transaction (of the same amount and of a similar date) to match with the imported statement line. When this happens, Xero matches the most likely transaction and provides a link to other transactions that are good alternatives.

If you don’t want to accept the match Xero has made, you can use the Other Possible Match Found link to select another possible match.

Unmatched transactions

Only create a spend or receive money transaction if there isn’t a match or suggestion, and you haven’t already entered the transaction into Xero.

Find the unmatched bank statement line, and then add the following information.

  • Who is the contact name. If you enter a name that does not already exist as a contact, you can choose to add them as new contact, or just enter their details.
  • What is the account to code the transaction to
  • Description of the transaction (optional)
  • Ensure the correct VAT rate is selected
  • Click OK

Bank Transfers

Bank transfers will show up as a receipt or payment in your bank reconciliation.

Bank transfer Xero
  • On the bank reconciliation screen, next to the bank statement line you want to reconcile, click the Transfer
  • Select the bank account which the money was transferred from/to and click ok.

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