Bank Reconciliation Xero: How To Reconcile Transactions?

Bank Reconciliation Xero: How To Reconcile Transactions?

bank-reconciliation-xero

Getting errors in bank transactions and accounts is common. Bank reconciliation Xero is the online feature that checks inconsistency in finances. Users can now review the statement lines as well as match them online. To use the reconciliation feature, you must know how it works. If you want to bring accuracy to records, then you must perform reconciliation from time to time. 

With the help of Xero, you can manage your sales, expenses, and payment online. Users can compare their previous year’s records with the current ones. You can import various statements directly from your bank account when you have Xero. If you don’t know how to reconcile bank transactions in Xero, keep reading this post until the end.

What Is Bank Reconciliation Xero?

Reconciliation is the process of matching the transactions with the account. During the reconciliation, users protect their bank feeds from error or fraud. Xero allows its users to reconcile bank records daily. The goal of this process is to keep the records up-to-date. Any error found in the bank accounts can be addressed urgently.

Bank-Reconciliation-Xero

With Xero bank reconciliation, users can:

Reconcile Daily

  • To keep accounts updated, users can reconcile transactions daily.
  • Import bank statements manually.
  • Use the Xero app to reconcile accounts.

Use Xero Suggestions

Bank reconciliation in Xero allows users to take suggestions. Xero suggests matches for the transactions.

  • Create new transaction for reconciliation
  • Match records with invoices or bills
  • Use the suggested match and category

Read More:- Xero Payroll UK: A User Guide To Set Up And Edit Payroll

Reconcile Multiple Transactions

Users can reconcile the bulk transactions at one time. Although this feature is available in an established plan.

  • Apply the bank rule to the transactions
  • Reconcile bulk records
  • Use alerts to correct errors

Xero-bank-reconciliation

Create And Reconcile Transactions In Xero

During the Bank Reconciliation Xero, if you don’t have transactions, you can create them. Follow these steps to create and reconcile transactions in Xero:

For Web

If you are using the web version of Xero, follow the steps below:

  • Firstly, from the Accounting menu, select the Bank Accounts option.
  • After that, click on Reconcile [Number] items.
  • Locate and tap Create to create a new transaction.
  • In the next step, add the Contact and Account Code to the transaction.
  • Now, check the Tax Rate assigned to each contact.
  • Enter the description and click Add Details to add extra information.
  • Then, click the Save Transaction option.
  • Lastly, tap on the OK button to create and reconcile the transaction.

For Android

If you are using Xero on an Android device, follow these steps:

  • Firstly, choose the Bank Account that has unreconciled transactions.
  • Select the Create New button.
  • Select What Was It For? Option.
  • Tap the Name icon to enter the details of the contact.
  • After that, click the account by clicking on Categorise To An Account.
  • To Attach multiple files, click on Attach Files button.
  • In the end, click on Save to reconcile the transaction.

For iOS

If you are using Xero on an iOS device, go through the steps given below:

  • Firstly, go to the Xero dashboard and tap the Bank Account tab.
  • Tap the Create button below the bank transaction you want to match for.
  • Select Categories To An Account to select your account.
  • After that, click the Select Tax Rate tab.
  • To attach multiple files, click on the Attach Files button.

Lastly, select the Save button to reconcile the transaction.

How To Do Bank Reconciliation In Xero?

It is essential to reconcile your bank accounts. Here is the step-by-step process of reconciliation:

1. Link Your Bank

First of all, connect your bank with Xero. During this step, you will allow Xero to import the account details and transactions. To connect your bank to Xero, go through the steps mentioned below:

  • Firstly, Log In to your Xero account.
  • Then, click the Accounting option to proceed.
  • Tap the Bank Accounts option from the list.
  • Tap on the Add Bank Account button.
  • Then, select your Bank Name from the list or use the search filter.
  • After that, tap the Login & Connect Accounts button.
  • Next, enter your bank details in the fields.
  • Now, select Bank Feeds to import the transactions automatically.
  • Finally, tap on the Business Bank Account to check the linked account.

2. Reconcile Bank Transactions And Accounts In Xero

You can check the unreconciled items in the bank reconciliation Xero. Follow these simple steps to start Xero bank reconciliation:

  • Firstly, Log In to your Xero account.
  • Check the transactions to reconcile on the dashboard.
  • To access the reconciliation screen, click on the Reconcile X items button.

3. Match Bank Reconciliation Xero

To match the transactions in Xero, go through the steps given below:

  • Firstly, compare your bank transactions with Xero.
  • Click the OK button to reconcile.

 bank-reconciliation-in-Xero

  • Select X other possible matches option to see the difference in transactions.
  • After that, select the Records which match your bank statement.
  • Finally, tap the OK button to reconcile.

How To Run Bank Reconciliation Xero Summary?

Running the bank reconciliation summary is crucial to match details. This report shows you the missing, duplicate, and deleted transactions.

To run the summary report, follow these simple steps:

  • Firstly, Log In to your Xero account.
  • Then, select the Reports option from the Accounting menu.
  • Go to the search field and enter the Bank Reconciliation Summary.
  • After that, select Bank Account, Date, and Time.
  • Finally, click the Update button to view the summary report.

View The Bank Reconciliation In Xero

After completing the reconciliation process, you can view the details. To view your transaction details, follow the steps below:

  • Firstly, log in to your Xero account.
  • Then, select the Bank Accounts option from the Accounting menu.
  • Select Bank Name from the list and tap the Manage Account button.
  • Tap the Bank Statement option and click on the Reconciled Bank Statement Line.
  • To view the details of transactions, go to the right-hand side of the screen.
  • To view the details of the statement, go to the left-hand side of the screen.
  • Lastly, click on Current Transaction to see the details.

Run The Reconciliation Transaction Reports In Xero

To run the reconciliation report, follow these steps:

  • First of all, select the Reports option from the Accounting menu.
  • After that, open the Account Transactions report.
  • Then, use the Search For Accounts field to select your account.
  • After that, choose the Date Range for which you want to see the report.
  • Click on the X Columns selected field.
  • Finally, hit the Update button to run the report.

Conclusion

Having better insights into bank accounts and transactions is crucial for any business. Bank reconciliation Xero allows users to reconcile transactions anytime. With security and convenience, you can keep your finances error-free. The features like suggested matches allow you to keep solving various errors in real time. The above post includes the steps on how to reconcile transactions in Xero. If you face any error or issue during the process, feel free to call our expert anytime.

MWJ Consultancy provides support services in industry-leading accounting software. We offer expert assistance in solving the different errors of the software. Our support services include Xero, Sage, QuickBooks, Quicken, TurboTax, TurboCash, etc.

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Bank Reconciliation Xero: How To Reconcile Transactions?

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