Setting up Bank

• You Just need to enter the name of Bank, your account number . Xero would prompt you in case bank feeds are available for the said bank account.

• Xero would give you different options for selecting a bank account.

• Account name is the name which you would like to appear in Xero.
• Currency is the default currency in which your bank account is managed.

Working with Xero Bank Account :

• Now you can work on your bank account and reconcile the transactions.
• This is how your bank account would look like with imported feeds. You can view your bank balances in Dashboard.

Importing Bank Feeds:- You can import bank feeds into Xero by following two methods:
Manual import:- You can manually import the transactions in Xero by a CSV template provided by Xero. We have not dealt with Manual import feature in this file. You can import a bank . However you can follow following steps for importing a bank statement.

• Log in to your online banking website and save a bank statement in either .QIF format (Quicken) or .OFX format (MS Money) to your computer.
• From Xero’s Dashboard select Manage Account > Import a Statement from your own bank account that you added in the step above.
• Locate and select the file downloaded from your bank and click Import.

Automatic Bank Feeds:– You can use Automatic bank feeds feature in Xero where Xero would automatically import the transactions on a daily basis. In this manual we have explained with Automatic Bank Feeds in details.

• You can match the bank feeds in Xero with suggestions by Xero. Xero automatically suggests the reconciliations based on the available data with it.

• You just need to press OK and the bank transaction is reconciled.

• You can see the unreconciled bank statement lines going to Bank reconciliation. Bank Reconciliation shows the transactions which are yet to be matched in Xero. Once a complete reconciliation is done, Xero bank balance would match with the statement balance and there would be no unreconciled bank statement line.

Tips :

1. Cash Withdrawal from Bank: For Cash drawings from bank you need to create a Bank in Xero called “Cash Account”. Xero does not have “cash in hand” Ledger automatically created in it.

Bank Rules :

• Bank Rules can be created for automatically allocating the transactions based on predefined rules.
• You can create bank rule by Going to “Create rule” button in Xero bank reconciliation.

• Here is how create rule would look like in Xero.

You need to input following details in order to make a rule:

When to Apply rule :

• Name of Payee and description.
• Bank account in which the rule applies (Target Bank)

Where to match with the rule :

• Contact details.
• Account where the details are to be matched.
• Here is how to create rule in Xero.

• You can see a complete list of bank rules here:-

• This is how bank rules look like:-