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Xero advisor certification / Xero advisor certification: Self-paced / Use bank reconciliation reports

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Use bank reconciliation tools

Use bank reconciliation reports

By Xero Education Published: Sep 3, 2021 8m (6)

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Introduction
Here's a quick overview of what you’ll be able to do by the end of the lesson.
You'll learn the following:

 
1. Analyse and reconcile 2. Find and fix errors

Export uncoded statement lines Search for and fix transaction

to work with them offline. Run errors. Delete any duplicates,
the Bank Reconciliation report to and manage incorrectly matched
find differences between bank transactions with or without
balances and reconcile them. statement lines.

1. Analyse and reconcile

Export uncoded statement lines to work with them offline. Run the Bank Reconciliation
report to find differences between bank balances and reconcile them.
 
Uncoded statement lines
Xero advisor certification / Xero advisor certification: Self-paced / Use bank reconciliation reports

Export uncoded bank statement lines to quickly analyse and reply to comments, offline in a
spreadsheet. This is helpful for clients who don’t connect to the internet. You must have
the advisor user role to do this.

Click the arrows below to learn more.

Step 5 of 5
Export[1] the information as a PDF or CSV file to start working on the data offline.

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Reconciling a bank account
Use the Bank Reconciliation Summary report to help you reconcile bank accounts and fix
any errors.

Click the tabs below to see the details.

 Xero balances Open the report Reconcile Actual bank bal… Conversion bal… Statement bala…

Xero advisor certification / Xero advisor certification: Self-paced / Use bank reconciliation reports

Use the Bank Reconciliation Summary[1] to compare the online bank balance with the
statement balance on different dates. Note the date when the two balances don’t match.
Click Bank Statement[2] and compare the statements with the online bank statements. Find
the difference in the bank statement in Xero, then delete or import statement lines to fix it.


Check for any statement exceptions

If you can't match the online bank account to the statement balance in Xero, click
Statement Exceptions[1] in the Bank Reconciliation Summary report. It shows you
statement lines that don’t match the normal reconciliation process. Like deleted or
duplicated statement lines, or ones you've marked as reconciled.
Xero advisor certification / Xero advisor certification: Self-paced / Use bank reconciliation reports

Xero Pro Tip

If a reconciled bank statement line or account transaction shows as unreconciled in the
Bank Reconciliation Summary report, it might be matched to a future-dated item.
Customer Experience Specialist, Xero

2. Find and fix errors

Search for and fix transaction errors. Delete any duplicates, and manage incorrectly
matched transactions with or without statement lines.


Fix transaction errors
Xero has several tools to help you find and fix errors with your transactions.

Click the tabs below to see the details.

 Open the rep… Bank transac… Enable recon… Mark reconci… Unreconcile Remove & re… Bank statem…

Xero advisor certification / Xero advisor certification: Self-paced / Use bank reconciliation reports

View complete bank statements or individual statement lines[1]. The source[2] shows where
the information came from. Click Search[3] to find particular statement lines. Select the
exact amount or date[4] to refine your search and find duplicates.


Xero balances
It’s important that your bank accounts in Xero show the correct balances. There are two
types of bank balances in Xero, the Xero statement balance and the balance in Xero. 

Click the play button to watch the video.

Xero advisor certification / Xero advisor certification: Self-paced / Use bank reconciliation reports

Assessment
Correctly answer the questions to complete the lesson.


Question 1
Your online balance for the business bank account doesn’t match the statement balance in
Xero. How do you fix the difference?

Drag each process step to the correct position and click Submit.

 Check the conversion balance is right for the bank account

 Open the Bank Reconciliation Summary report

 Change the report dates to find when the balances don’t match

 Check the bank statements and statement lines to find the difference in Xero

 Import any missing statement lines and delete any ones that are wrong

Submit Show Feedback

  Complete

Xero advisor certification / Xero advisor certification: Self-paced / Use bank reconciliation reports


Question 2
It’s important to know how to handle these common bank reconciliation scenarios. Can you
complete the statements below?

Select the correct options and click Submit.

You paid a bill with petty cash. As there won't be a bank statement line, you can reconcile
it in the petty cash bank account using _______________.

mark as reconciled 

You used remove & redo on a transaction that was manually marked as reconciled. This
deletes the ______________.
transaction and statement line 

You unreconciled a transaction that was reconciled with the incorrect statement line.
This _______________.

breaks the link between the two 

Submit Show Feedback

 Complete


Practise your new skills
To put your new skills into practice follow these simple steps.

Step 1: Log in to the demo company and go to Bank accounts.

 Step 2: Run the Bank Reconciliation report for an account with transactions. Review the
information in each of the tabs.
Xero advisor certification / Xero advisor certification: Self-paced / Use bank reconciliation reports

Step 3: In Bank accounts, view reconciled and unreconciled transactions for an account
with transactions.

Step 4: Select a reconciled transaction and unreconcile it. Go back to the reconciliation
screen for that account, and find the unreconciled transaction.

Step 5: Go to Bank statements. View the statement lines, then view the entire statement.

Wrap up
We’ve summarised the key sections of this lesson for you.


We've covered
Click on the items to reveal each summary.

Analyse and reconcile 

Find and fix errors 

Learn more
Click the links below to learn more about the topics in this lesson.

Bank Reconciliation Delete or restore a bank

Summary statement line
 Next Activity
Resolve
Xero advisor certification / Xero advisor common
certification: banking
Self-paced issues
/ Use bank reconciliation reports