How to Reconcile Your Bank Account
How to use Xero's four reconciliation methods — Match, Create, Transfer, and Discuss — to categorise bank transactions.
Bank reconciliation is one of the most important routines in Xero. By categorising your bank transactions, you keep your financial reports accurate and up to date — automatically, in the background.
Access the Reconciliation Screen
From the dashboard, click the Reconcile link on the relevant bank account panel.
The reconciliation screen has two sides:
- Left — individual statement lines imported from your bank feed
- Right — matching Xero transactions (invoices, bills, etc.)
The Four Reconciliation Methods
Match
Use Match when a statement line corresponds to an existing invoice or bill. Xero automatically suggests matches based on amount, date, and payee. Review the suggestion and click OK to confirm.
Create
Use Create when there is no existing invoice or bill — you're categorising the transaction from scratch. Fill in:
- Who — the contact name
- What — the account to code it to
- Why (optional) — a description
Click OK. Xero learns from your previous coding and will make auto-suggestions for similar transactions in the future.
Transfer
Use Transfer when money has moved between two of your own bank accounts. Click Transfer, select the bank account the money came from or went to, and click OK. Xero records the transfer in both accounts automatically.
Discuss
Use Discuss when you're unsure how to categorise a transaction. Leave a comment that's visible to other users — such as your accountant or advisor — so they can advise you.
Getting More Help
Click the question mark icon at the top of the reconciliation screen and select the link to access reconciliation help articles on Xero Central.
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