Starting Reconciliation & Bank Balances

To begin reconciling, navigate to accounting and select Bank accounts to view your linked accounts. For each account, you will see two key balances:

• Statement Balance: The total from your imported bank statement lines.

• Balance in Xero: The total of all transactions recorded in Xero.

Both balances originate from your initial opening balance. To start reconciling, click Reconcile X items from this screen or your dashboard.

Xero displays each imported bank transaction with its amount categorized in either the Spent [1] or Received [2] column.

To streamline your view and see more transactions on screen at once, click the Compact view [3] toggle.

Using Xero's Match Suggestions

Xero suggests a match [1] for each transaction based on amount, date, payee, bank rules, or past activity.

Review the suggestion, edit if needed, and click OK [2] to reconcile and remove it from the list.

Using Xero's Predictions

If no match is found, Xero may predict [1] a transaction using the line details, your contacts, and chart of accounts.

• Predictions appear in italics to distinguish them.

• Edit details directly or click Add details [2].

• Click OK [2] to confirm and reconcile.

Handle Multiple Matches

If multiple possible matches exist, Xero suggests the most likely one.
To choose a different transaction:

• Click "X other possible match found" [1].

• Use the Find & Match window to select the correct transaction.

• Confirm your selection to reconcile.

Create New Transactions

• If no match is found, the Create [1] tab will appear.
  Use this to quickly create a new expense, income, or transfer directly from the reconciliation screen.
  To search for existing transactions manually, click Find & Match [2].