01 / Reconciliations
Bringing the bank balance back into line.
Xero · Bank reconciliation
A balanced reconciliation. No duplicate income.
The challenge
A client had managed their own bookkeeping before engaging our team. After the Xero bank feed was enabled and transactions reconciled, the bank balance did not match the actual statement, and the client could not identify the cause.
What I did
Reviewing the Bank Reconciliation Report showed the feed had been activated from a later date, so earlier transactions were missing, and customer payments recorded directly against invoices had later been reconciled from the feed as sales — creating duplicate income, incorrect GST and overstated taxable income. I corrected the reconciliation, removed the duplicates, and explained the cause so it would not recur.
The result
The reconciliation balanced, duplicate income was removed, GST and taxable income were corrected, and the client regained confidence in their records.