Your aim is to match statement lines from your bank with account transactions created in Xero.

  1. In the Accounting menu, select Bank accounts.
  2. For the bank account you want to reconcile, click Reconcile [number] items.

    Image of the Bank Accounts screen and the Reconcile [number] items button

  3. Review each statement line imported from your bank, which are on the left of the Reconcile tab.

    Image showing bank statement lines on the left hand side of the Reconcile tab.

Reconcile a statement line with a suggested transaction

Accept a matched transaction

Transactions are suggested by comparing the amount, closest due date, then the contact name. Accept the suggested transaction to reconcile the bank statement line, or discard the suggestion and reconcile the statement line another way.

  1. Check the statement line is matched with the correct transaction.

    • Use Find & Match to find other transactions you've entered in Xero.

    • If you're reconciling older statement lines, check the dates of the statement line and the transaction to make sure they're similar.

    • If you're reconciling manually imported statement lines, check the day and month haven't been transposed as month and day.

  2. If Xero has matched the statement line with the correct transaction in Xero, click OK to accept the match and reconcile.

    Image showing a matched transaction being accepted.

Choose from other possible matches found

Sometimes Xero finds more than one Xero transaction for the same amount and of a similar date to match with the imported statement line. When this happens, Xero matches the most likely transaction and provides a link to other transactions that are good alternatives.

Image showing the Other possible matches link being selected.

If you don't want to accept the match Xero has made, click Other Possible Match Found to select another possible match.

Image showing other possible transactions to reconcile the statement line against.