Feb 27, 2020 Author: Accounts Junction
Xero makes reconciling the transactions of invoices, bills, and banks easy and automated. Xero understands the importance of fast and accurate reconciliation of transactions. Its simplified steps de-burden your load of manual reconciliation and update your feeds every day and securely.
There are various other options Xero provides for the smooth functioning of these reconciliation steps:
Recording part payments in Xero:
It is not necessary that your customers and debtors always pay you the full amount of what is charged. Installment payments are a very convenient option these days and many people opt for it. Receiving and recording part payments may give you a headache.
Xero helps you with recording the part payments received. It uses ‘Split Link’ to distribute the total sum of the amount. For reconciling part payments in Xero, follow the given steps:
a. Under the ‘Reconcile’ tab, click on the ‘Find and Match’ option.
b. Make selections of all the invoices and the bills you want to reconcile.
c. Then, click on ‘split link’.
d. Enter the amount of part payment for due amounts.
e. Click ‘reconcile’
Your process of reconciliation of part payments is finished in a few simple steps in Xero.
Reconciling store sales:
Xero is specially designed to manage small-scale businesses. Store sales can be directly updated in Xero. But the invoices then need to reconcile in order to match with the payments received through bank transactions.
It is suggested to make a clearing account in Xero for the transfer of the sales invoices to transfer the amount. You can adapt your way method to do the same.
a. Reconciling bulk payments:
To reconcile bulk payments, first, you need to create a clearing account. You can then transfer all the sale invoices you received on Xero to your clearing account.
b. Reconciling stripe payments:
Stripe is a software you can use in your business for payments made over invoices and bills. Using stripe for your payments, you can feel at ease as it is safe and fraud-proof. Xero uses stripe as it addons for receiving fast payments through plastic money
i. Using bank feeds: Bank feeds do not actively participate in making or receiving payments, but rather act as a background hand to connect Stripe and Xero, helping in transferring the stripe payments to Xero.
ii. Using silver siphon: Silver Siphon is also used as an add-on for reconciling stripe payments with Xero. It imports all the payment data to Xero and makes it appear on the ‘Reconcile Tab’.
Using receipt bank for reconciliation:
Receipts bank is an application that makes the reconciliation of receipts easy by simply scanning them and uploading the details on your bookkeeping software.
Receipt bank easily integrates with Xero and makes syncing the data of invoices and receipts to the software really quick. All the processes in the receipt bank are automated.
The initial process is simple. You just need to snap your receipt from its camera. Then, it automatically extracts all the key information and transfers and updates them to their respective accounts.
Using Datamolino for receipts:
Datamolino is an extended software used by Xero for bookkeeping. Datamolino eliminates the additional task of manual data entry. This scans the invoices, receipts, and other documents and offers them to you in any format of your preference.
Its data extraction technology is so accurate that it eliminated the chances of error that may seem possible in manual entry. Its duplicate detection feature help detect repeated invoices and transactions that may affect the trial balance.
Also, integration of datamolino with that Xero is very easy and quick.
Setting up clearing accounts for reconciliation:
For managing and reconciling Xero payments with that of the bank, Xero suggests creating a clearing account. For creating a clearing account, you have to follow some simple basic steps:
a. Create a separate current asset account. It will be your clearing account.
b. All the payments should be credited to this account.
c. These above two steps will create a bulk amount under the same account.
d. Then, the payments will be debited one by one.
