Reconcile a payroll transaction paid manually

Reconcile a bank statement line representing a payroll transaction paid manually by cash or personal check.

About reconciling payroll transactions

Before you start

Create transaction in Xero and match with payment

About reconciling payroll transactions

After you process a pay run in Xero and pay it manually by cash or check, you’ll need to reconcile the transactions by allocating (coding) them to your payroll accounts. For example, your wages payable or tax accounts.

Before you start

Make sure you've:

Check mark. Processed all relevant pay runs

Checkmark Imported your bank statements

Checkmark Made sure all checks have been cashed

Create transaction in Xero and match with payment

  1. Go to Accounts, then click Bank Accounts.
  2. Find the account you paid your wages from, and click Reconcile [number] items.
  3. Find the bank statement line that represents the net wages.
  4. Click the Create tab to create a spend money transaction.
  5. Enter the payroll wage details such as transaction name, account, and details.

    Select your wages payable account

  6. Click OK to reconcile.

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