Xero has made it easy to perform smart bank reconciliation and have a complete view of your business. If you’re an accountant or bookkeeper who will handle a new client, there’s no need to rummage through a whole year’s worth of receipts. With Xero, you can get these bank statements imported, connect your bank account to Xero, and it will automatically be reconciled and categorised.
The Xero Cash Coding tab can be used by an adviser or a standard user with cash coding permission. This tool can reconcile large number of cash transactions you haven’t entered into Xero, in a single click. It is more efficient than using the Reconcile tab as bank statement lines are ordered into columns you can sort to group similar items together. You can bulk select a range of accounts and tax rates so items can be coded consistently. It is also more accurate as it creates a matching spend or receive money transaction when you save and reconcile.
Using the Xero cash coding tab, you can create a new bank rule based on an imported and unreconciled bank statement line. You can also apply a saved bank rule to one or more statement lines. It will be pre-populated with the bank statement details, saving you having to manually recode every time.
Xero is known to have a keen eye for little details that makes a huge difference. The improved layout is made simple and intuitive. It is designed to better fit any browser size so you can easily work through the items one by one. By default, it lets you view up to 200 bank statement lines on the screen at a time. Moreover, the save & reconcile button is made permanently stuck at the bottom of the screen so you won’t waste time looking for it among the numbers. You can also jump between bank accounts effortlessly with the bank account ‘switcher’.
However, you should not use Xero cash coding to reconcile invoices, credit notes, expense claims or transfer money transactions because you’ll create a spend or receive money and your transaction in Xero will remain unpaid. To avoid this, Xero hides statement lines with suggested matches by default on the ‘main’ bank reconciliation screen.
Xero Cash Coding is the perfect tool for accountants and bookkeepers to keep their clients’ books up-to-date and reconcile multiple imported bank statement lines faster and more accurately than before.
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