Reconciling that account

Now that the transactions have been reconciled, it is time to complete the bank reconciliation process. Xero makes this easy:

1. Start by viewing or downloading your most recent bank statement. Note the ending date on the statement, as well as the ending balance:

Figure 6.20: Banking header

2. Click on Reconciliation Report under the date on the right-hand side near the top of the bank account screen. This will open the Bank Reconciliation screen.
3. Enter the date from the bank statement and click Update.
4. Review the statement balance from the Bank Reconciliation screen against the ending balance of the bank statement. If they match, you are good.
5. Export your reconciliation report and save it to your document management system, along with the statement:

Figure 6.21: The Bank Reconciliation screen

6. If your balance does not match, you need to put in some elbow grease. First...