The longer you go without doing it, the longer it will take to catch up. It won’t just be that you have more transactions to do, it will take longer per transaction because you’ll have a harder time land depreciation recalling the details. Bank reconciliation happens when you compare your record of sales and expenses against the record your bank has. It’s how you verify your business accounting numbers. Making sure every transaction is accounted for isn’t just about compliance – it’s about financial confidence. Once you understand bank reconciliation, you can get it right every time.
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.
- Keep your account balances and financials up to date.
- Stay current with daily bank reconciliation of items from your bank statements.
- You could get that from a statement, from online banking, or by having the bank send data straight to your accounting software.
Business books show something that’s not on your bank statement?
Fill out the form to receive the guide as a PDF. Xero does not provide accounting, tax, business or legal advice. This guide has been provided for information purposes only. Schedule the time to do it every week or even every day. And set up a system that makes it quick and easy to grab the records you need.
Reconcile bank transactions quickly
If a transaction isn’t showing in your business books, it could be from a keystroke error when you entered a transaction. Or it could be a transaction that you forgot to enter. Switching between documents and comparing numbers isn’t everyone’s cup of tea. If you can’t spare the time or stand the monotony, there’s an alternative.
Yes – keep your bank reconciliation up-to-date and you can view your bank account balances, cash flow, unpaid invoices, monthly profit and other insights. See reconciled bank data and receive alerts about unreconciled transactions on the Xero dashboard. Your bank data automatically flows into Xero, so you can regularly reconcile transactions and ensure your financial records are accurate and up-to-date. When you reconcile your accounts, you match bank data to transactions in Xero such as invoices, bills, and other payments.
Spend less time on bank reconciliation
Most of the bank reconciliation process is done for you – you just need to review the suggestions. No matter how you do bank reconciliation, you’ll come across mystery transactions from time to time. There will be amounts that appear in one set of records but not the other. This is why you’re doing bank rec, and there’s often a straightforward tax form 1120 explanation.
Keep your account balances and financials up to date. Easily confirm that the transactions in your bank accounts are recorded in your business financial records with Xero’s bank reconciliation software. When you reconcile transactions, Xero alerts you if your bank balance and the balance in Xero aren’t the same. If they don’t match, the bank reconciliation summary makes it easy to check for missing, deleted, or duplicated bank transactions. When you reconcile, Xero alerts you if your actual bank balance and the balance of the bank account in scrap definition Xero aren’t the same. If they don’t match, the bank reconciliation summary makes it easy to check for missing, deleted, or duplicated bank transactions.
Growing your business
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.