As your bank transactions automatically flow into Xero, reconcile all your accounts regularly so your financial records are accurate and up to date. When you reconcile your accounts, you match your bank statement lines to transactions in Xero, such as invoices, bills and other payments. Set up bank feeds and reconcile bank transactions daily so you can view up-to-date account balances, financial records and cash flow.
Get to the bottom of it and make the necessary notes. After 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 accrual basis your next reconciliation. This might be in a logbook, on a spreadsheet, or in an accounting software package.
Some accounting software will pull in bills and receipts with the help of data capture tools and extract the data automatically. Review and match bank data over your morning coffee or in any free moment using the Xero accounting app. Getting bank data into Xero for reconciliation is simple. Most banks can connect to Xero so data flows in automatically.
Use suggested matches
- Running a small business is hard enough without complex financial admin taking up your time.
- Some accounting software will pull in bills and receipts with the help of data capture tools and extract the data automatically.
- No matter how you do bank reconciliation, you’ll come across mystery transactions from time to time.
All bank withdrawals should be recorded in your books. This includes things like bank fees, which you might not have accounted for yet. Bank reconciliation is just one piece of the puzzle. Here are some guides on key topics for business owners.
Bulk reconcile bank transactions
Check and accept suggested reconciliations to make bank reconciliation less time-consuming. Make sure each deposit appears as income in your accounts. You’ll need to figure out if it was a sale, interest, a refund, or something else. Learn about the eight core bookkeeping jobs, from data entry to reporting and tax prep.
Bank statement shows something that’s not in your business books?
If you run a current account and a credit card account, you’ll need both statements. Running a small business is hard enough without complex financial admin taking up your time. With Xero, completing tasks like bank reconciliation is a fast and simple process. Xero gives you the tools to manage your finances so these don’t become another full-time job. Review and match bank transactions over your morning coffee or in any free moment using the Xero accounting app.
Each entry should match a withdrawal on your bank statement. One of your payments may not have cleared yet, or maybe you paid using cash or a different account. Access Xero features for 30 days, then decide which plan best suits your business. Stay current with daily bank reconciliation of items from your bank statements. Each entry should match a deposit on your bank statement. A customer payment might have bounced, for example.
This should result in the same cash balances in your bank account and in Xero. Keep your financial records up to date with fast and simple reconciliation. Easily match your bank data with bills, invoices, and receipts using Xero’s bank reconciliation accounting software. View your bank account balances, cash flow, unpaid invoices, monthly profit atp and adp and more when your bank account reconciliation is up to date. See reconciled bank transactions and receive alerts about unreconciled transactions on the Xero dashboard.
Live bank data flows into Xero, so you can reconcile daily and see up to date account balances and cash flow insights. Yes – you can easily manage bank accounts from the Xero dashboard. Each account has cash or accrual accounting its own panel which shows the bank statement balance, the balance in Xero, and the number of statement lines to be reconciled. Our account reconciliation software recommends matches for transactions, categorises them, and applies bank rules.
Easily manage your bank accounts from the Xero dashboard. Get set up for bank reconciliation by adding your bank accounts in Xero, connecting to your bank to receive automated bank feeds, and setting opening balances. You could get that from a statement, from online banking, or by having the bank send data straight to your accounting software.