Reasons why your statement balance and balance in Xero differ
Work out why your statement balance and the balance in Xero are different, and how to fix things if you need to.
Your business is new to Xero
Your starting point in Xero must be correct. If you're new to using Xero for this business, and your statement balance and the balance in Xero don't match, do the following tasks.
Check your conversion balance is correct
Your conversion balance in Xero is correct if it matches your closing bank balance for the day before you started using Xero.
Check uncleared funds from your previous accounting system are entered correctly
You entered uncleared funds from your previous accounting system correctly if you created a suspense account for unpresented cheques and didn't include them in your conversion balance.
Check your conversion balance is saved
Check the conversion balance, and Save it if you haven't confirmed the balance.
You've used Xero for a while for this business
At times your statement balance and balance in Xero may not match after you've reconciled. Sometimes this difference is OK and will fix itself when you import and reconcile your next bank statement. If you've used Xero for a while for this business, and your statement balance and the balance in Xero don't match, do the following tasks.
Check unreconciled account transactions in Xero
View account transactions to check for unreconciled ones.
It's OK to have unreconciled account transactions if they relate to statement lines that haven't been imported into Xero yet.
But if there are unreconciled account transactions you think you've already reconciled, it's likely you've created duplicate transactions in Xero. Duplicates usually happen during bank reconciliation, when transactions are created to match statement lines instead of finding transactions already entered in Xero.
To delete a duplicate transaction, select its checkbox and click Remove & Redo.
Check for missing bank statement lines
View bank statement lines to check which bank account transactions were imported into Xero.
It's OK to have date gaps if there was no activity in your bank account during these dates.
Import a bank statement file if you're missing transactions from your bank account.
Check for duplicate, manual, deleted bank statement lines
Run a Bank Reconciliation Summary, then go to the Statement Exceptions tab. Look for any duplicate, manual and deleted bank statement lines. Are these correct?
Deleted bank statement lines are OK if you've imported these statement lines more than once. But if you deleted a bank statement line by mistake, it's likely you'll need to restore it.
Manual bank statement lines are OK if you've manually marked these transactions as reconciled because you couldn't import their statement lines from your bank account. But if you marked a transaction as reconciled, then imported its statement line, you'll need to delete the statement you created.
Duplicate bank statement lines are usually double ups - and it's likely you'll need to delete them.