23 April 2013

Bank reconciliation in Xero

With Xero.com - one of the first tasks you will perform is reconciling the bank and Xero has a number of ways to do this:
  • Manually (entering each transaction and marking it as reconciled)
  • Automatically - Linking with your bank account and pulling in the transactions which are then allocated (some allocated automatically, or per bank rules you can setup),
  • Import a csv file or bank export.
Other tasks you will perform include:

1. Creating a new bank account
In Xero click -> account > bank account, then you can start to input the details of the bank account , credit card or paypal by clicking Add Bank Account on the top left.

2. Importing bank statement
Log in to your online banking website e.g. Banking Online, AIB Business Banking etc... and save a bank statement in either QIE format or OFX format to your computer.

Locate and select the file downloaded from your bank and click import.

3. Importing the sale and purchase invoices
go click the account < sales or purchases < new, getting all details input correctly then click approve.

4. Reconciling the bank
Xero will automatically match them up by clicking manage account > reconcile account, checking the matched transactions, clicking OK for each you agree with.
You can also match multiple items - check whether it is a combination of two or more invoices by clicking Find & Match > either searching by Name or Amount.