This is part of our Bank Feeds and Reconciliation series (Chapter 3 of the Xero tutorial hub):

• Lesson 1: Connecting Your Bank Feed to Xero
• Lesson 2: Daily Reconciliation in Xero Made Simple
• Lesson 3: Setting Up Bank Rules in Xero to Save Time
• Lesson 4: Handling Personal Spend and Owner Drawings in Xero

Reconciling is just matching each bank transaction to what it actually was. Doing it often keeps it quick.

1. Find the reconcile screen

Under Bank Accounts, select Reconcile to see transactions waiting to be matched.

2. Match or create

Xero will often suggest a match against an existing invoice or bill. If there is no match, you create one by coding it to the right account.

3. Make it a five minute daily habit

Reconciling little and often is far less overwhelming than facing hundreds of unreconciled transactions at BAS time.

4. When something does not look right

If a transaction does not make sense, it is worth checking with whoever handles your books rather than guessing and coding it incorrectly.

Xero’s YouTube channel covers reconciliation basics: watch the official Xero tutorial. If reconciliation has piled up, our rescue bookkeeping service can help you catch up.