Are you a current Xero user? In this blog we discuss some tips for bank reconciliation in Xero, which can be challenging at times.
There are a number of features available in Xero to make working on your bank reconciliation a breeze. The following three features will give you an overview of how painless your reconciliation can be.
- Bank feeds
- Having bank feeds connected in your Xero account will automatically bring your bank transactions in ready for reconciliation.
- This reduces the chances of doubling up entries with the only manual transaction entry needed is recording cash expenses.
Now that you have all your transactions in your account you will need to reconcile them, although you don’t want to manually code each transaction…what a pain! But don’t panic, if you set up bank rules for common transactions, it will help reduce the number that need to be coded.
- Bank Rules
- Adding certain conditions to your bank rule will allow you to specify the account a transaction should be allocated against.
- If bank rules have been set up, you just have to review and approve to reconcile the transaction.
- Depending on the amount of common transactions you have and the bank rules created, it can cut dramatically reduce your reconciliation time.
Xero connect with over 700 apps to support various functions of your business. Taking advantage of these Add-on apps can assist you to free up more of your time to focus on your business.
- Add-on Apps for bills and Expenses
- These apps can allow users to upload pictures of their receipts and will read the information recorded and feed it through to your Xero account as a bill. During reconciliation process this bill will appear to approve.
- If you look back at that transaction at a later time, your uploaded picture of the receipt will still appear, eliminating the need to keep the physical receipt.
If you think that the above features would be beneficial to you and your business and would like help, feel free to contact us here.
This blog is brought to you by Nicole.