You can connect your Xero file to your bank account and your bank statements and transactions are able to be imported and in many cases are matched automatically to information already in your Xero file…all you need to do is click “OK”!
Some of the benefits of using the bank reconciliation feature in Xero include:
- Being able to reconcile transactions directly from your bank, this reduces data entry time and lowers the risk of errors. You can even reconcile your PayPal or credit card account (the system also supports foreign currencies)
- Each and every day you can see exactly how much money is in your bank account – this means you can make decisions about your business transactions based on real time information
- By using the App. you can be reconciling your bank account while out for coffee or sitting in bed in the morning (Xero is supported for Mac, PC, tablet and phone)
- Xero is able to match transactions based on amounts, names and reference numbers, but the real beauty is being able to create rules to automatically allocate transactions (ie: fuel purchases, postage, insurance), this is particularly helpful for repeating transactions!
All in all, I find the Bank Reconciliation process to be one of the big time savers with Xero – if you’d like to see this in action or have further queries, please contact me!