The Xero bank feed is definitely a game-changer! Unfortunately, it can go wrong, usually, it’s a simple fix but finding it can be troublesome. The best course of action is to ensure you check the bank balance on Xero agrees to a pdf/electronic statement every month but if you haven’t done that here are 5 steps to take to find where the difference is:
#1 Check for non-bank feed items
In the bank section, under account transactions, sort by bank transaction source. Look for the items that haven’t come from the bank feed and check if they’ve cleared the bank on the actual statement.
#2 Look for missing or duplicated dates
In the bank statements tab, look for any obviously missing dates. The most common errors are the bank feed either duplicates or misses items. It’s only usually for a day or two so it will need an eagle eye!
#3 Find out where it has home wrong
If you haven’t checked Xero to your actual bank statement in a while you’ll make the above a lot easier if you can identify the month where it has gone wrong. Print a trial balance for each month and check back to your actual bank balance. Usually, each month-end is the best starting point.
#4 Use Xero’s bank reconciliation report
Within Xero there is a reconciliation report. This will identify any timing differences between Xero and your bank account.
#5 Check your other bank accounts
A common error in differences is transfers between bank accounts. If you concentrate on reconciling the savings/credit cards /other banks, you may find the error here. It’s usually easier to find in these accounts as there are fewer transactions in them.
Bonus cheat !!
Use the search facility to search for the value of the difference. You never know, it might just be one transaction….
