Compare the statement balance in Xero to your actual bank balance
You should regularly compare the statement balance in Xero to your actual bank balance, to make sure they match for the same date. If they don't match, either the opening balance 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.
About the statement 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.
Steps to take if the balances are different
- Check the opening bank balance is entered correctly and saved
- Identify when the error happened
- Identify the error
- Fix the error
Check the opening bank balance is entered correctly and saved
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 Customer Support team asks you to do this. Changes to this data can cause discrepancies in future reporting and account balances. Your balance should be correct as part of the conversion process from Quickbooks to Xero.
- Make sure the conversion balance entered for the bank account matches the actual closing bank balance, as per your online banking or paper statements, for the day before you started using Xero.
- Check that uncleared funds from your previous accounting system have been entered using a suspense account and that they aren't included in the conversion balance.
Check the conversion balances have been confirmed and saved.
Identify when the error happened
Once you have confirmed the opening balance is correct, identify the date the error happened.
- Find the date the statement balance in Xero last matched the actual bank account balance.
- Run the Bank Reconciliation Summary report for a month from this date. For example, if the balances last matched on 31 March run the Bank Reconciliation Summary report for the period 1 April to 30 April.
- Compare the balance shown on the Bank Reconciliation Summary against the actual bank balance at this date. For example, compare the statement balance in Xero as at 30 April with your actual bank balance for the same date. If they match, run the report for the next month and do the same.
- When the balances don't match it means the error has occurred within this period. For example, if the balances don't match at 31 May, it means the error happened in May.
- Run the Bank Reconciliation Summary report for a period within the month to narrow down the date the error happened. For example, run the report for 1 May to 15 May and compare the balances. Keep doing this until you've identified the date range where the balances go out.
Identify the error
Once you've identified the date range where you think the error happened, identify what the error is. Check for:
- A missing bank statement line.
- A duplicate bank statement line (one that was imported twice into Xero).
- A bank statement line deleted in error.
- An account transaction that was marked as reconciled by mistake (which has created a manual bank statement line).
Compare the information in the Bank Statement tab of the Bank Reconciliation Summary Report to your actual bank statement, line by line. Any difference you identify may be the cause of the error.
Check the Statement Exceptions tab of the Bank Reconciliation Summary report for any duplicate, manual and deleted bank statement lines to confirm if they're correct.
- Deleted - It's correct to delete a statement line if you accidentally imported it more than once. However, if you deleted the line in error, you may need to restore it so your balances match.
- Manual - Manually marking a bank statement line as reconciled is OK if you couldn't import the statement line 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 - Duplicate bank statement lines are usually double ups. View the bank statement lines that were imported to check.
Fix the error
Now that you've found the 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 - if the statement line was duplicated in error, delete it.
- Deleted bank statement line - if the statement line was deleted by mistake, restore it.
- Manual bank statement line - if you marked a transaction as reconciled, then imported its statement line, delete the manual bank statement.