How to Reconcile a Money Received Transaction in Xero

Updated on:

May 12, 2026

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Use this interactive demo to learn how to mark a received payment as reconciled in Xero.

Quick summary

Reconciling a money received transaction in Xero keeps your bank records accurate by matching incoming payments to their corresponding entries. This process takes just a few clicks using the Mark as Reconciled option inside any bank transaction view.

Steps

On Xero's main dashboard, select a bank account to view its transactions.
Choose and open the money received transaction you wish to reconcile.
Tap the Options button in the top-right corner of the transaction view.
Click Mark as Reconciled to proceed with the reconciliation.
Click Mark as Reconciled one more time to confirm your request.
The selected money received transaction will be reconciled instantly once confirmed.

📌 Why this matters

Accurate bank reconciliation is essential for maintaining clean financial records, and Xero makes it possible in seconds without manual data entry. By using the Mark as Reconciled feature, accounting teams and small business owners can quickly verify that incoming payments match their bank feed, reducing errors and audit risk. This streamlined workflow helps businesses stay compliant, close their books faster, and maintain real-time visibility into their cash position.

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