Compare your statement balance in Xero to the balance your bank shows
You should regularly compare your statement balance in Xero to your actual bank balance, making sure they match each other for the same date. If they don't match, either your starting point in Xero is wrong or there's an error in the bank statement lines in Xero. Use this page to identify and fix the error.
Check your starting point in Xero is correct
First, check the actual bank balance in your conversion balances is correct and entered.
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.
Identify when your error happened
If you're confident your conversion balance is correct but your statement balance in Xero still doesn't match your actual bank balance, then you need to identify the date the error happened.
Recent conversion from QuickBooks to Xero
If you have recently converted your data from QuickBooks to Xero, it's important that you don't change the Conversion Balances and Conversion Date. Also avoid removing any converted transactions from your organization unless the Xero CX team asks you to do this. Changes to this data can cause discrepancies in future reporting and account balances. Your balances should be correct as part of the conversion process from QuickBooks to Xero.
Run the Bank Reconciliation Summary report for several dates in the past
The dates you choose will depend on how long ago your statement balance last matched your actual bank balance. Let's say, for example, your balances last matched in January and it's now April. Run a Bank Reconciliation Summary report for 31 January, 28 February and 31 March.
Compare your Bank Reconciliation Summary reports to your actual bank balances
Check the statement balance on your Bank Reconciliation Summary agrees with your actual bank balance for your chosen dates. For this example, you may find your balances match for 31 January and 28 February, but not for 31 March. This means an error happened in March. You can then run Bank Reconciliation Summary reports for several dates in March so you can further narrow down the date an error happened.
Identify the error
Once you've identified a date range in which you think an error has happened, then you need to identify the error. It will be one of the following:
- A missing bank statement line.
- A duplicate bank statement line (one that was imported twice into Xero).
- A mistakenly deleted line.
- An account transaction that was mistakenly marked as reconciled (which has created a manual bank statement line).
View your bank statements in Xero for your chosen date range
The best way to view your bank statements in Xero is through the Bank Statement tab in the Bank Reconciliation Summary Report.
Manually check your actual bank statement lines against your bank statement lines in Xero
Next, work through your actual bank statement, line by line, and find where it differs to your statement lines in Xero. The difference you identify is your error.If you have many statement lines to work through, you might find it easier to export both your bank statement in Xero and your actual bank statement to an Excel spreadsheet.
Fix your error
Now that you've found your error in Xero, fix it.
Missing bank statement line
Import a bank statement file for the missing transaction. If you can't import it, you'll need to reconcile the account transaction without a bank statement line.
Duplicate bank statement line
Deleted bank statement line
Restore the deleted statement line, if it was deleted by mistake.
Manual bank statement line
Delete the manual bank statement, if you marked a transaction as reconciled, then imported its statement line.