June 15, 2019 by Emma Watson
Xero accounting software serves the users at a greater approach to help them in their accounting and bookkeeping needs. It also offers you to proceed with bank reconciliation with some easy steps. You need to do bank reconciliation when you compare your sales and expenses record and against the bank statements, and it helps you to verify the numbers and accounting status. Now you need to learn the process of Bank reconciliation and the easy process to perform. You can call at Xero contact number and get the easy steps to complete the process. You can follow this blog till the end to get the complete information about bank reconciliation.
Steps to perform bank reconciliation:
1. Get bank records:
To start the process, you will require the list of transactions from the bank. You can ask for the account statement from internet banking, or you can use Xero software to access the accounting information. You would require credit card information as well.
2. Get business records:
You need to access your income and outgoing ledger. You can use logbook, spreadsheet or accounting software methods to store this information.
3. Find your starting point:
When you get balance accounts, you need to look at the starting balance in your account and start the reconciliation from there.
4. Run through a bank account:
You need to consider the deposit as income in your accounts. You need to figure out missing entries.
5. Check the income on your books:
Next, you need to make a match of the deposit to the bank statements and find out the reasons for missing entries.
6. Run through the bank withdrawals:
You need to check if all the bank deposits are displaying in the record books, including bank fees.
7. Check the expenses on your books:
Check all the entries carefully to mark every expenses you have made. Also, mark those payments that are due and missing.
8. End balance:
After completing all those exercises, you need to match the total in your business accounts, and it should be the starting point for your next bank reconciliation.
Bank reconciliation with Xero software:
Xero helps you immensely to get the right track for bank reconciliation. Below are some points to denote how it can help you:
1. Xero helps you make a match.
2. Xero software setup the bank rules easily.
3. Xero suggests you get the right direction.
4. Xero software provides you a proper space and interface to complete the process.
Above you have been provided a proper solution with a step-by-step guide to performing bank reconciliation, but if you need further support then contact at Xero tech support and get the guided support.
Source URL: Bank reconciliation in Xero