Rules, rules, rules

The Xero bank reconciliation process is aided by the use of rules. Over the years of using Xero, I have realized that I, along with my clients, am a creature of habit. I use the same vendors time after time – the same gas station, the same restaurants, the same hardware store. This leads to repetitive transactions, and that is exactly where rules come into play. You create a “rule” based on the specific criteria, and based on that information, the bank statement lines are coded, leaving less manual work for you when you’re recording your transactions.

Let’s take a quick look at how we set up a rule:

1. The following is a bank transaction from the 7-Eleven company:

Figure 6.12: Bank transaction

2. In this case, let’s assume our client is buying gas for their landscaping business. Every day, they stop at the same 7-Eleven store and top off this tank. This is the perfect case for...