- Start on the reconcile screen in one of the bank accounts. Select “Transfer.” If you have more than two bank accounts in Xero you will also need to select the appropriate bank account.
- Press OK.
- Go to the reconciling page for the other bank account. This can be done by clicking on the dropdown arrow next to the bank account’s name and selecting the other account.
- Xero should have automatically matched the transfer with the relevant transaction in the second account and turned green. Check that the dates agree. If all is correct, select OK.
Common mistakes
- Matching the incorrect date: Xero matches the transactions based on the transaction amount. Therefore, if there are multiple transfers of the same amount on different dates, Xero will show that it has multiple matches.
If this occurs, click on the warning. This will bring up a list of the matches, where you can select the correct transfer. Once done, click OK.
- Transfer doubled up: If steps 3 & 4 are not done correctly, the transfer can be doubled up in Xero. This often occurs because steps 1 & 2 are done in both bank accounts, rather than only selecting transfer in one account, and then matching in the other. This will result in you having two of the same transactions, one reconciled and the other unreconciled. To check for this, go to the bank account transactions. Select the unreconciled transaction by ticking the box on the left and then “Remove & Redo.”
You will then need to go into the reconciliation screen for the second account to complete steps 3 & 4.