It’s important to regularly compare the statement balance in Xero to your actual bank balance. If the bank balance isn’t matching, you’ll want to fix the issue fast because it means you’re reading the wrong numbers and could be making decisions based on incorrect data.
Though bank feeds import your transactions daily, and do work 90% of the time, every now and again things can go wrong. One or two transactions may be missed, accidentally deleted or even duplicated. Though it seems small, those one or two transactions being off will result in an unmatched balance when you come to reconciling the bank.
If you notice this mismatch, there are a few steps you can take to figure out the cause.
The problem could be due to duplicates
From our experience, many clients experienced duplications of transactions in Xero when their bank moved onto the new bank feeds.
This may be really noticeable for some, and Xero have worked through a lot of the issues with major UK banks. But some business owners may still be unaware that this is the cause of their mismatched balance.
Bank feeds do work 90% of the time. But every now and again, things can go wrong. If the bank realises, it gets corrected but there is often a delay.
First, you’ll want to find out when it went wrong.
1. Pull up bank reconciliation from each month end and compare the statement line balance to your physical bank statement to see which month the difference appeared in. You’ll have less transactions to look through when you take it month by month.
2. Once you have identified the month in which the difference arose you will need to get more granular and look at a day by day view – perhaps a transaction was deleted, imported, or duplicated.
3. Once you have found the errors, any duplicates can be deleted and any missing transactions can be manually imported – give us a call to find out how to correct these.
Get in touch with Saint to put it right
If you’re a client of ours, and you’ve been through these steps without success – do get on to us for support. If your bank in Xero doesn’t balance with your bank statement at year end, it will take us more time to do your year end accounts which may end up costing you more, so it is more beneficial for you to catch it and sort it early on. Chat to one of our specialists to get it fixed.
If you know anyone who may benefit from our newsletters and updates, please feel free to forward this email or ask them to opt in to our mailing list.