How to Reconcile a Bank Account in Xero

Quick summary

Bank reconciliation in Xero matches your bank statement lines to recorded transactions, keeping your books accurate and audit-ready. Using the Find & Match workflow, you can select, verify, and confirm transactions in just a few clicks directly from the Xero dashboard.

Steps

1. On the Xero dashboard, find the bank account you wish to reconcile and click its corresponding Reconcile Items button.
2. Click the Find & Match button next to the statement line you wish to reconcile.
3. Tick the checkbox beside each transaction you want to include in the reconciliation.
4. Review the selected transactions and, if needed, click New Transaction to add more entries.
5. Verify that the total amount of selected transactions matches the money received; click Adjustments to account for bank fees or minor balance differences if necessary.
6. Click the Reconcile button once the totals match.
7. Tap Confirm to finalise and complete the bank reconciliation.