Reconciliation

Question 1

In Xero, bank reconciliation is completed from the ….what tab?

Answer 1

Accounts tab, bank tab, Reconcile

Question 2

why is reconciliation done?

Answer 2

To ensure the bank account transactions and Accounts match

Question 3

How often should you reconcile your transactions

Answer 3

Often/regularly

Question 4

bank reconciliation is completed from the Reconcile tab, by matching

Answer 4

bank statement transactions on the left with xero transactions on right

Question 5

Statement lines are the bank transactions imported from your

Answer 5

bank account via a bank feed (or manually imported)

Question 6

what 3 things does Xero Bank Reconciliation allow you to do with your bank statements?

Answer 6

imported
categorised
matched to the appropriate transaction

Question 7

How many currencies does xero update and how often?

Answer 7

160 currencies every hour

Question 8

how many bank accounts can you set up in Xero?

Answer 8

as many as you like

Question 9

Pathway to add bank account is?

Answer 9

Accounting > Bank accounts > + Add Bank Account.

Question 10

Bank feeds let you do what?

Answer 10

automatically import bank statement transactions directly into your Xero organisation.

Question 11

How many days can it take a bank to allow direct bank feeds?

Answer 11

up to 10 working days

Question 12

are there bank feed authorisation form links in xero?

Answer 12

Yes

Question 13

Why should you choose OFX file exports If your bank offers it to do manual transaction imports before your live bank feed is available?,

Answer 13

you should choose this over any other format because it recognises duplicates

Question 14

What are the 3 file formats accepted by Xero as import files?

Answer 14

CSV
QIF
OFX

Question 15

What 3 ways can you get to reconciliation function?

Answer 15

Blue Reconcile items button on the Dashboard

Reconcile link on any of the bank account screens

Reconcile Account link from the Manage Account menu

Question 16

When Xero believes that there is a match between the transaction and the bank statement line item, you will see that the suggested transaction presents in what colour and where?

Answer 16

in blue immediately beside the bank statement line item

Question 17

Xero Reconciliation matches are made by comparing the what fields?

Answer 17

amount
contact name
reference details
closest due date

Question 18

Sometimes there are multiple transactions for the same amount and a similar date, so how does xero handle these?

Answer 18

the most likely transaction is suggested and a link provided to the other alternatives.

Question 19

If you don’t want to accept a reconciliation match,

Answer 19

click [number] Other Possible Matches Found to see other options.

Question 20

when is it a good idea to use the Find & Match function?

Answer 20

When you have a large number of invoices to the same company

Question 21

If Xero can’t find a match or it doesn’t create a suggestion what does it do?

Answer 21

leave the statement line unmatched ready for you to create or find a transaction to match to.

Question 22

You can use the Find & Match link to see?

Answer 22

All Invoices

Question 23

within the Find & Match screen, you are able to sort fields?

Answer 23

Date,
Name,
Reference,
Spent and Received columns by clicking on the blue heading name.

Question 24

What date should credit card or debit card transactions have?

Answer 24

date of the statement line, date payment transaction came out of account

Question 25

Where no Xero transaction exists for the corresponding bank statement item, you can?

Answer 25

create a new spend or receive money transaction, sales invoice, bill or expense claim, so that you are able to reconcile the transaction.

Question 26

does Xero automatically creates contacts from data entry screens with the payee name, so you don’t have to have a supplier or customer already set up? or should you set up a new customer

Answer 26

Xero will set it up automatically so no need to create new contact card

Question 27

What is the DISCUSS field used for?

Answer 27

Adding a note about the transaction i.e if you don’t know how to code it and you can invite someone (manager/financial advisor to discuss)

Question 28

when reconciling, you can’t split payment transactions that are already recorded on what?

Answer 28

invoice, bill or expense claim in Xero.

Question 29

Xero will always match to what fields first?. If a match is found, the right-hand side of the transaction in the Reconcile screen is what colour?

Answer 29

invoice payments and/or references first. Screen is Blue

Question 30

if there is no match to the invoice payments and/or references field what field does Xero try to match with next?

Answer 30

Bank Rules

Question 31

how do you create two new Bank Rules pathways?

Answer 31

1) Accounting-Banking-bank rules-create rule
OR
2) under OPTIONS click the BANK RULE next to the reconciliation item you want a new rule for. Xero will auto populate fields for you

Question 32

describe Bank Rules Function

Answer 32

If that, then this…IF banking line says Streetwise coffee, THEN match to Staff Expenses account

Question 33

in the business bank accounts tab The Account transactions tab shows all of the…?

Answer 33

transactions created when you reconciled the bank lines. These include spend money, receive money, payments on an invoice (sale or bill) and transfers.

Question 34

The Bank Reconciliation Summary can be run to check if your…?

Answer 34

Bank balance and your Xero bank Balance match

Question 35

When should you run a bank reconciliation report?

Answer 35

run this report every week or month to ensure that any issues can be quickly identified and corrected.

Question 36

are overpayments, payments on intended future work? do they attract tax?

Answer 36

No they are not so don’t attract tax

Question 37

When would you use the Prepayment function in Xero?

Answer 37

For deposits paid i.e security deposit on a venue or accounting for a cheque that you paid a supplier but has not been banked yet

Question 38

Rules do not apply to what?

Answer 38

sales invoices and bills.

Question 39

when selecting the bank rule ‘Any’ Xero will…?

Answer 39

apply the rule if only one of the conditions is met. The rule won’t fail just because one or more conditions do not match. This makes the rule less restrictive.

Question 40

When selecting the bank rule ‘ALL’ xero will…?

Answer 40

apply only when every condition is met. If one condition does not match, for example, if a particular piece of information is missing from a statement line, then the rule will not run. This makes the rule more restrictive.

Question 41

When telling Xero which fields to search, If you select Any text field, Xero will search…?

Answer 41

All the available fields, Payee, Description, Reference and Analysis Code

Question 42

When telling Xero which fields to search, If you select an individual text field i.e PAYEE field, Xero will search…?

Answer 42

Only the payee fields for that specific word and no others, this is more retrictive

Question 43

In the Condition drop-down box, you must choose from the following 4 options:

Answer 43

Equals
contains
starts with
is blank

Question 44

conditions: Equals - means the conditions must…?

Answer 44

must exactly match the selected text field of the bank statement line.

Question 45

Conditions: Contains - The selected text field in the bank statement line must

Answer 45

contain the value(s) entered. i.e ‘Bob’, ‘Streetwise’ etc

Question 46

Conditions: Starts with - The selected text field in the bank statement line must…?

Answer 46

start exactly the same as the value(s) entered. i.e ‘bobs coffees’, the text field must say exactly that ‘bobs coffees’ not bobs coffees and pies

Question 47

conditions: Is blank - The selected text field in the bank statement line must…

Answer 47

be blank.

Question 48

Will editing a bank rule effect past transactions?

Answer 48

no