The bank reconciliation process is where most of the ‘data entry’ work is done in a Xero file and while we can have rules and matching to help with the process, it is important to have a bookkeeper with a trained eye to approve entries in the file.

Xero is a great program, but we do often see a mess where a user will be excited by the prettiness of the Xero file and the nice ‘feel good’ green ticks and just accept anything in the file.  However, it is important to know where things are going and how it all works in the background.  When you tick the “OK” and it disappears where it is really going and what effect is this having on your reports and GST?

The bank reconciliation process is a lot more than just the data entry process.  You need to reconcile it back to your bank account also.  It is vitally important to run the bank reconciliation report to ensure that there is nothing that has been processed in the background hat has not been matching to the bank feed in Xero.  Anything appearing on this report can potentially be causing you to be looking at inaccurate reports and making business decisions based on inaccurate information.