Bank Reconciliation With Xero

If you find bank reconciliation a pain in the neck, you’re going to love Xero. Known in the accounting world as ‘the most beautiful’ accounting package, Xero makes bank reconciliation a complete walk in the park.

 

business owner carrying out a bank reconciliation

 

A particularly time-consuming and sometimes frustrating job, bank reconciliation is on most small business owners list of least-liked tasks and it’s easy to see why. Until you’ve experienced the Xero solution.

Suited to even the smallest of businesses, Xero is a great option if you want online accounting 24/7 and while on the move, as well as a solution that will only cost you a few pounds a month. And what’s more, Xero has a feature called bank feed that makes laborious bank reconciliation a thing of the past.

Xero automated bank feeds allow you to import your bank, credit card and Paypal transactions directly into your online accounting system. By doing so, you save a huge amount of time re-keying, but more than that, it means that you are constantly working on completely up to date data. In order to achieve this efficient and streamlined way of working, you simply need to connect your bank account, credit card and Paypal to Xero and you’re off. You can even specify rules that you want to put in place for matching transactions.

What’s more, Xero allows you to pre-code your bank statements to simplify cash coding and it can handle up to 160 different currencies. So Xero really is a powerful tool that you shouldn’t ignore if you’re not a fan of bank reconciliation.

Here are some questions you may be facing right now:

Is it safe to link my bank account to a third party software package?

Online accounting, or cloud accounting packages as they’re often called have battled security questions for years. This is why, after perfecting their product so it stands out in the marketplace, security is top of their priorities.

Online and cloud accounting package providers invest millions in security to make sure that the data you share with them is safe and protected. Not only do they have physical security around their servers, but they have extremely sophisticated online security and encryption methods that keep your data safe. What this means is that you really can work in complete peace of mind when you choose the right provider.

Will my accountant be happy with this way of working?

Accountants these days are accustomed to working with a range of online and cloud accounting solutions, so there should be no problem whatsoever. In general terms anything that makes your bookkeeping and accounting system more efficient should be welcomed by your accountant. When it comes to bank reconciliation in particular, it’s a job that accountants would rather live without too, so they are likely to be grateful for any automation you put in place.

Why didn’t I think of this earlier?

This is a question that most SME owners come up with once they get comfortable with their chosen online accounting solution. A real Eureka moment for most busy business owners, as soon as they have found their way around a well-designed and easy to use online accounting system, they never look back. Whether it’s the peace of mind it affords them for bank reconciliation or the fact that it removes the headache of VAT returns, we’re yet to hear a small business owner say, I wish I could go back to my old system!

If you’d like your bank reconciliation as easy as possible then why not give us a call or drop us an email? We’ll gladly talk you through the options and help you identify what would work best for you and your business.