How To Reconcile Bank Account In Xero
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 and to help reconcile your bank account in Xero:
- 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.
- 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!
- Find out where it has gone wrong
If you haven’t checked Xero to your actual bank statement in a long time, 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.
- 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.
- 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 less transactions in them.
Xero Duplicate Statement Lines Report (NEW)
Duplicate statement lines can be imported via a bank feed, or if you’ve manually imported a statement into Xero. Check your statement balance in Xero against your bank balance, then run the Duplicate Statement Lines report or the Reconciliation Report to identify and delete duplicates
Bonus cheat !!
Use the search facility to search for the value of the difference. You never know, it might just be one transaction….
If your Xero shows missing transaction or if you need help reconciling your account in Xero, get in touch with our team of Leeds Accountants.