If you deal with cash transactions or don't enter all transactions in Xero before you import bank statements, set up bank rules: a quicker and easier way to reconcile imported bank statements.
With bank rules you define the conditions for each rule to match with your imported statement lines. After you import a bank statement and go to reconcile your account, your rules run. For each bank transaction that matches a rule, Xero creates a transaction using the details of the conditions you've set. If the transaction that Xero creates based on the rule is wrong, you can edit it, create a new one or find a transaction you've already entered into Xero to match with your statement line.
From the dashboard, click on the Reconcile x items
Click on “Create rule” above the transaction
Amend the descriptions that are shown taking out items that may change on the bank statement from time to time
In this example we have deleted the Description line, changed the payee from “equals” to “contains” (which we recommend you do in most instances). We would also recommend you change the “all” conditions to “any”).
In Section 2 Enter the Contact e.g. the Payee
Section 3 can generally be ignored unless you want to allocate a fixed proportion of the value to an account.
In Section 4 choose how you want the item described and which account code, tax rate etc to which you want it to be coded e.g.
Section 5 – set the reference from the dropdown – generally you would want it automated and not have to enter it each time.
Section 6 – leave as the default and in Section 7 give it a name.
Click Save. Every time that entry appears in future you will be prompted to apply that rule and all you need to do to get it into the system is click on OK alongside the transaction.
Alternatively, the rules can be accessed as follows:-
From the dashboard – click Manage on the chosen bank account
Choose Bank Rules from the options listed
Click on Create Rule and choose Spend Money or Receive Money from the dropdown list.
The following is a link to the bank rules section in the Xero Business Help Centre for detailed instructions on how to create, run and edit your rules.
There is also an instructional video on creating bank rules.
Glover Stanbury & Co
30 Bear Street, Barnstaple T 01271 375271
27 Bridgeland Street, Bideford T 01237 471881