Xero reconciliation is the process of matching bank feed transactions to accounting entries in Xero, confirming that your books accurately reflect your bank activity.
Reconciliation in Xero is streamlined through the bank reconciliation screen, where imported bank feed transactions are presented for matching. Xero suggests matches to existing invoices, bills or creates new transactions based on bank rules. The process involves three types of actions: matching (linking a bank transaction to an existing invoice or bill payment), creating (recording a new transaction for items like bank fees, interest or miscellaneous income) and transferring (recording movements between your own accounts). Each action reconciles the bank transaction, moving it from the 'to be reconciled' queue to the reconciled ledger. The goal is a zero balance in the 'items to reconcile' queue, meaning every bank transaction has been accounted for. SortBooks helps with Xero reconciliation by showing which transactions match invoices and bills, so you can reconcile each one in a click - reducing a daily task to a quick review.
SortBooks helps with the bookkeeping behind xero reconciliation by connecting to your Xero account and using AI to suggest the right account for transactions sitting in catch-all accounts, learning from your own past coding. Instead of fixing xero reconciliation by hand, you review each suggestion, approve it, and SortBooks updates Xero, GST code included. Then ask the AI CFO about your numbers, using live Xero data.
Bank reconciliation is the process of matching your accounting records to your bank statement to ensure they agree. It identifies discrepancies, errors and missing transactions.
Xero is a cloud-based accounting platform designed for small businesses. It provides invoicing, bank reconciliation, payroll, reporting and integrations with over 1,000 third-party apps.
A bank feed is an automatic, real-time connection between your bank account and your accounting software that imports transactions directly, eliminating manual data entry.
An invoice is a document sent to a customer requesting payment for goods or services provided. It includes details of the transaction, payment terms and the amount due.
Bookkeeping automation uses technology to perform repetitive bookkeeping tasks without manual intervention, including transaction categorisation, reconciliation and report generation.
Connect Xero, check the AI's suggestions and approve the changes. SortBooks updates Xero for you.