Reconciliation Flashcards
In Xero, bank reconciliation is completed from the ….what tab?
Accounts tab, bank tab, Reconcile
why is reconciliation done?
To ensure the bank account transactions and Accounts match
How often should you reconcile your transactions
Often/regularly
bank reconciliation is completed from the Reconcile tab, by matching
bank statement transactions on the left with xero transactions on right
Statement lines are the bank transactions imported from your
bank account via a bank feed (or manually imported)
what 3 things does Xero Bank Reconciliation allow you to do with your bank statements?
imported
categorised
matched to the appropriate transaction
How many currencies does xero update and how often?
160 currencies every hour
how many bank accounts can you set up in Xero?
as many as you like
Pathway to add bank account is?
Accounting > Bank accounts > + Add Bank Account.
Bank feeds let you do what?
automatically import bank statement transactions directly into your Xero organisation.
How many days can it take a bank to allow direct bank feeds?
up to 10 working days
are there bank feed authorisation form links in xero?
Yes
Why should you choose OFX file exports If your bank offers it to do manual transaction imports before your live bank feed is available?,
you should choose this over any other format because it recognises duplicates
What are the 3 file formats accepted by Xero as import files?
CSV
QIF
OFX
What 3 ways can you get to reconciliation function?
Blue Reconcile items button on the Dashboard
Reconcile link on any of the bank account screens
Reconcile Account link from the Manage Account menu
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?
in blue immediately beside the bank statement line item
Xero Reconciliation matches are made by comparing the what fields?
amount
contact name
reference details
closest due date
Sometimes there are multiple transactions for the same amount and a similar date, so how does xero handle these?
the most likely transaction is suggested and a link provided to the other alternatives.
If you don’t want to accept a reconciliation match,
click [number] Other Possible Matches Found to see other options.
when is it a good idea to use the Find & Match function?
When you have a large number of invoices to the same company
If Xero can’t find a match or it doesn’t create a suggestion what does it do?
leave the statement line unmatched ready for you to create or find a transaction to match to.
You can use the Find & Match link to see?
All Invoices
within the Find & Match screen, you are able to sort fields?
Date,
Name,
Reference,
Spent and Received columns by clicking on the blue heading name.
What date should credit card or debit card transactions have?
date of the statement line, date payment transaction came out of account
Where no Xero transaction exists for the corresponding bank statement item, you can?
create a new spend or receive money transaction, sales invoice, bill or expense claim, so that you are able to reconcile the transaction.
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
Xero will set it up automatically so no need to create new contact card
What is the DISCUSS field used for?
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)
when reconciling, you can’t split payment transactions that are already recorded on what?
invoice, bill or expense claim in Xero.
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?
invoice payments and/or references first. Screen is Blue
if there is no match to the invoice payments and/or references field what field does Xero try to match with next?
Bank Rules
how do you create two new Bank Rules pathways?
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
describe Bank Rules Function
If that, then this…IF banking line says Streetwise coffee, THEN match to Staff Expenses account
in the business bank accounts tab The Account transactions tab shows all of the…?
transactions created when you reconciled the bank lines. These include spend money, receive money, payments on an invoice (sale or bill) and transfers.
The Bank Reconciliation Summary can be run to check if your…?
Bank balance and your Xero bank Balance match
When should you run a bank reconciliation report?
run this report every week or month to ensure that any issues can be quickly identified and corrected.
are overpayments, payments on intended future work? do they attract tax?
No they are not so don’t attract tax
When would you use the Prepayment function in Xero?
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
Rules do not apply to what?
sales invoices and bills.
when selecting the bank rule ‘Any’ Xero will…?
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.
When selecting the bank rule ‘ALL’ xero will…?
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.
When telling Xero which fields to search, If you select Any text field, Xero will search…?
All the available fields, Payee, Description, Reference and Analysis Code
When telling Xero which fields to search, If you select an individual text field i.e PAYEE field, Xero will search…?
Only the payee fields for that specific word and no others, this is more retrictive
In the Condition drop-down box, you must choose from the following 4 options:
Equals
contains
starts with
is blank
conditions: Equals - means the conditions must…?
must exactly match the selected text field of the bank statement line.
Conditions: Contains - The selected text field in the bank statement line must
contain the value(s) entered. i.e ‘Bob’, ‘Streetwise’ etc
Conditions: Starts with - The selected text field in the bank statement line must…?
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
conditions: Is blank - The selected text field in the bank statement line must…
be blank.
Will editing a bank rule effect past transactions?
no
