Reconciliation - Conclusive reconciliation
Xero should provide 'proper' bank/card reconciliation so as to be able to conclusively reconcile the xero record with the source bank account.
What xero calls reconciliation is merely 'matching' bank feed transactions to xero transactions. This is not really reconciliation to source account because the Bank feed is known to both miss lines of the statement and duplicate lines of the statement.
If the feed misses a transaction and it is not in xero either you would never know through the existing reconciliation (matching) process.
Similarly if the feed duplicates a line it may cause it to be created in xero again but you would not know your account was wrong as it matches the feed but not the source bank account.
In the absence of proper reconciliation the feed should at least party check itself that what it has delivered matches the source.
This could be a £1 or a £10k transaction. You would only know by manually checking the reconciliation report against the source account statement which defeats the object of the automation.
Or am I missing something!
Andrew Murtha
shared this idea
Hi Andrew, appreciate you'd like ensure what's been imported from your bank to Xero. We will continue to develop the logic and learning behind matches and suggestions Xero provides overtime.
As you know Xero has direct connections with many banks and financial institutions to offer feeds and import statement lines from your bank. In many cases these can be auto matched through a bank account in your organisation.
Despite being thorough in many situations, as these are connections with parties external to Xero, there are cases like you've noted where statement lines can be missed or duplicated - Hopefully you don't find this occurring too often if you do I'd recommend connecting with our Xero Support team to see if there's any way to improve what's being imported.
Manual intervention and review of bank reconciliation is required to confirm what has been reconciled and imported to your bank to match what you're seeing in your online banking. There are tools and methods we suggest in being able to check and confirm reconciliations in your org - You can find more on this here.
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Optimus Fintech
commented
Here is another additional information about Financial-related reconciliation practices are also available on this website: https://optimus.tech/.