Reconciliation - Ability to reconcile clearing, control, and non-bank accounts in Xero
Ability to reconcile clearing,control and non-bank accounts in Xero.
Purpose: To save time rather than having to copy and paste into excel to reconcile the balance.
Hello everyone, appreciate all your feedback here. To be upfront, we don’t have any plans to develop the ability to reconcile clearing, control and non-bank accounts in the near future.
Some of the technology improvements going on across Xero will create more opportunities for us to explore extending some of the more complex functionality from one part of Xero to another. However, we are some way off from this yet.
That being said, there is the Account transaction report that could be handy in providing a view of both sides of a transaction in Xero. You can include the related account as a column in the report - See more in our help article on this.
Alternatively, if you’re using an external system, you could look into the Xero App store.
Appreciate there are also lots of ways others are using Xero’s to fit their needs - If you have another way you’re achieving this, welcome to share it here :)
We are now Xero certified!!
We have a brand new website at https://www.rechound.com which contains pricing, FAQ and a bunch of resources on how you can finally reconcile any balance sheet account in Xero. You can now also sign up for a free 30 day trial :)
Let me know if you have any questions or would like to get in touch!
You can message us on the website or at email@example.com
Hopefully we are only a month or so away from release!
If you'd like to become a Beta tester we still have some space - just shoot an email to firstname.lastname@example.org and we can get you set up. There's no obligation here at all, pretty much just free RecHound until we go live! :)
For more information we have a new blog post here:
Darren Chua commented
Beside the invoice number, reference, cost centre field, allow the admin user to add several customised field can solve many problems. User can add a reconciliation number field and pairing themselves as reconciled
Nella Barnard commented
I think it will be a great new feature, if you are able to reconcile your loan accounts in all you separate entities on separate Xero’s. A report linking and matching entries in different loan accounts in all your entities.
An update on how our app is tracking for those still after this feature:
I watched your You Tube Video and it looks fantastic. Huge thank you for developing this. It is a game changer. I would love to test drive it when you are ready.
Well that was a bit of work!
We now have our proof of concept completed for our application - see the video below for an idea of what we have been developing!
Very eager to hear your thoughts on this. Thanks to you all for your support and feedback thus far :)
Savvy Office Solutions 1 commented
Once the multiply bank reconciliations program is working could the product tema create another non bank reconciliation report.
Alex Lacota, that is very exciting news. Can't wait to see it when it's done.
I have exciting news! After relentless work with the API, we believe we are 95% of the way towards our proof of concept for line by line reconciliations!
We aim to build out our UI over the coming months and have beta testing available in the new year. We aim to have a website up and running soon with the option to join a mailing list for updates - periodic updates will be posted here as well but we aim for the mailing list to be our main form of communication. I will let you all know as soon as this is available.
Thanks again for all your input on this topic, it has really helped shape the development for this product :)
Paul Downward commented
I would agree with Peter! Reconciliations are not only for bank accounts. All clearing accounts such as PAYGW, GST, Super payable need to be reconciled to "nil" to ensure nothing has been left unpaid. dumping them to excel is a workaround but its time Xero introduced this feature.
Robert Ross-Edwards commented
This functionality would be very beneficial, I am in retail and all clearing accounts tor Amex etc there are hundreds of transactions, that need marking off, line by line.
Far easier to know what has not been reconciled than look at spreadsheet with hundreds of lines and mark off individually.
Alternatively could allow manual journal entry to bank accounts, which would allow the use of the functionality, and not use bank feeds. This could be done on account by account basis, like allowing payments to non bank accounts
Really appreciate all the feedback from everyone on this.
As I mentioned, the core functionality of the application will be to manage the completion and approval of balance sheet reconciliations, as there is no current process for this within Xero, and is required from a governance perspective.
I will be pushing to have line by line reconciliations added to the functionality of this application, but although currently untested, I do foresee some major roadblocks here due to the API functionality within Xero, specifically within the parameters running the journal API, (eg in order to pull out the transactions for a month per GL account, it appears that you need to run a data dump of every single journal ever posted. This would cause a timeout for many businesses.)
I will periodically post updates on this thread in regards to how we are tracking on this solution.
Russ Willing commented
Yep. I'm seeking line by line reconciliation too.
Robert Flook commented
I agree with Arron that knowing an account doesn't reconcile is the easy bit. The hard bit is working out why it doesn't reconcile. Having some way of noting that you have identified a transaction, which remains on the record when you return would be really helpful.
Also, I am not sure @Dana A has understood the issue as they are referring to reconciling balances within a company. The majority of reconciliations are with 3rd parties (e.g. HMRC, Bank loans, Intercompany loans) so the information being compared is outside of Xero. A good first step would simply be the ability to tick off transactions and for the tick to remain (unless removed). A formal reconciliation system, similar to the bank rec system, could follow in due course, though I am not sure it needs to be that sophisticated.
Aaron Ferguson commented
@alex - it’s great someone is working on solving this issue, but I don’t think you’ve picked up the core of the problem. I don’t see how your solution would add much value at all, and can be achieved (I think, as you describe it) using other kpi / monitoring software (eg Fathom) that does a lot more as well.
Line by line reconciliation is the vital part and the real value add
Thanks Alex for working on a solution for something that should be part of any Accounting Software. Unfortunately what you are describing at this stage doesn't sound like the solution I am looking for. The key need is to be able to tick and clear the bits and pieces that reconcile ( often this is to $0.00) and to be left with only the items that are waiting to be reconciled. For many Balance Sheet Accounts this can be complex and transactions that tick off against each other can be months apart. They can also be six transactions on one side that tick off against one or two transactions on the other side. It is so painful and time consuming and antiquated to have to deal with this via Excel.
Tanya Spence commented
The functionality as you have explained it does not sound like what I am chasing here. I am wanting to be able to tick off, line by line, in many cases in order to reconcile back to $0 so reconciling to a specific balance won't work in these sorts of cases. eg. Merchant clearing account, reconciles to $0 but usually has an "unticked" balance at a specific date that won't come in till a day later.
Also, personally I believe that this is a critical element for any decent accounting software and am astounded that Xero has not seen this yet, so your solution SHOULD be short lived if Xero listen to their partners and users and see the relevance and importance of this functionality being in the core software.
Heather Smith commented
I've got clients paying thousands to get this core functionality sorted, so very much a needed solution. Can I encourage you to post your comment in the Mastermind group where we love apps and data and data accuracy ! https://www.facebook.com/groups/XeroMasterMind
I am currently working on creating a Xero application which will assist in managing balance sheet reconciliations. We plan on making the management process simple, essentially where you can add a "reconciliation" balance to each account for each month, and the system will notify you if this balance matches the current Xero balance. You will be able to add attachments and descriptions to each balance you enter. Each account can be approved by a specified person if required, by a specific date. The program will also tell you if the periods are locked, and if any old balances have changed, in order to maintain up to date reconciliations.
You will be able to roll forward past reconciliations to make the current month easier as well, and view the 'last reconciled' rec available in the system.
Our initial plans don't include reconciling line by line transactions within the system (ie netting off lines as you go), however this may be something that we can add further down the line.
Would love to hear your feedback on this idea, and whether you would deem this to be useful in the current state