Why are the statement balance and balance in Xero different?

There may be differences if you've created an account transaction in Xero but haven't imported the corresponding bank statement line, or there's a bank statement line in Xero but you haven't created the account transaction. Learn how to find the source of the difference and how to fix it so the balances match.

About the statement balance and balance in Xero

The statement balance in Xero is the opening bank balance plus the sum of all bank statements imported into the bank account in Xero. You can import bank statements manually, or by using a feed.

The date displayed for the statement balance is the date of the last bank statement line in the bank account in Xero. The date won't change if a bank feed is refreshed, but no newer statement lines are imported.

The balance in Xero is the opening bank balance plus the account transactions created in the bank account in Xero. It's the bank account balance that displays on the Balance Sheet and other reports.

How do I fix the difference?

  1. Check that the statement balance is correct
  2. Reconcile all the bank statement lines for the bank account
  3. Check for unreconciled account transactions in Xero

Check that the statement balance is correct

First, it's important to check that the statement balance in Xero matches the actual balance your bank shows, before you reconcile all the bank statement lines. If the balance doesn't match, work through the steps on this page, Compare the statement balance in Xero to your actual bank balance, to identify and fix the error.

Reconcile all the bank statement lines for the bank account

Once the statement balance in Xero is correct, reconcile all the statement lines on the Reconcile tab of the bank account. This will ensure that every transaction that occurred in your bank account has been recorded in Xero.

If you have future dated account transactions in Xero, there might still be a difference once all the statement lines have been reconciled. It's OK to have a difference when the bank statement lines for these transactions will be imported in the next one (or two) bank statements imported into the bank account.

If you have done this and the balances still don't match, check for unreconciled account transactions in Xero.

Check for unreconciled account transactions in Xero

To check for unreconciled account transactions, view the account transactions tab of the bank account and sort by status.

Image showing the account transaction screen and an unreconciled transaction.

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, you might have created duplicate transactions in Xero. This can often 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.