Setting up bank reconciliation in Xero

No Comments

Every business wants to ensure that they maintain a proper accounting system for their firm. While maintaining the financial transactions in the accounting books, it is also important to have proper bank reconciliation. This can help to make a proper closing of the monthly and annual accounts. Xero is wonderful accounting software that can help to keep up a proper accounting system and maintain nice bank reconciliation. This software can make the bank reconciliation process. However, setting up bank reconciliation can be a little tedious due to the several steps involved in it. Here, we will guide you in setting up bank reconciliation in Xero to make the work better.

Why it is important to prepare bank reconciliation?

Bank reconciliation helps to make sure that the transactions in the accounting records are the same as that of the transactions in the bank accounts. Xero accounting software makes this task simpler by matching the accounting transactions on the right to the bank transactions on the left. During the bank reconciliation process, both the statement lines are matched to check their correctness. It helps to identify the errors or frauds in the accounting transactions in the business. A proper bank reconciliation process also helps to keep the proper accounting records. So it is recommended for bank reconciliation on a regular basis.

What process is followed in bank reconciliation?

With Xero, the bank reconciliation process is made easy where it lets you know when the bank statement lines are ready to reconcile. The panel helps to know the number of bank statement lines being imported and what needs to be reconciled.

Following things can be done on Xero for bank reconciliation:
– Every individual statement line you get to see on the reconcile tab, the Xero helps to match the transactions with respect to the bill or Invoice.
– Creating new transactions for the money given or received, in the case of money transactions to another bank account.
– In case of any doubt, it is always better to have a proper discussion with the bookkeeper or accountant for getting proper reconciliation.

Xero is cloud-based accounting software that provides a better dashboard for bank reconciliation. For every statement line, Xero generates some possible account transactions. All the information in the account transactions is then compared with the bank transactions. Xero gives matching suggestions wherever similarities of the bank transactions and account transactions are found. In the case of multiple transactions, the match is made where there is a closest due date. While doing the bank reconciliation it is always better to get consultation from experts. They can guide you properly with their expertise which can help to prepare a bank reconciliation better. You can ensure proper accounting of the business.

Conclusion:

Xero is fantastic accounting software that makes the bank reconciliation process simpler. It also helps to keep all the accounting aspects of the business in the proper ordered way.

Meru Accounting has a very nice hands-on experience of working on the Xero software for accounting activities. They can provide accurate bank reconciliation which can help to detect all the smaller errors in the business. Meru Accounting is a well-known accounting agency that provides different accounting services for businesses across the world.

Infographics Summary:

How Setting up bank reconciliation in Xero can be helpful?

Xero accounting software can make accurate bank reconciliation that can help to detect the smaller errors in the transactions

Here are some of the important steps in setting up Xero:

  • Prepare the reconcile
  • Proper bank account review
  • Matching all the existing transactions
  • In case of no transactions, create a new account transaction
  • Consult the expert

Xero software can make the bank reconciliation process simpler.

camera
public
School

Author: info

×