If you transfer amounts from and to the bank accounts that download into Xero care should be taken to make sure that the transaction is taken up correctly.
By using the transfer tab when processing the reconciliation of the transaction and selecting the account that the funds are transferred to or from you will create an entry in the other bank account which needs to be matched to a bank transaction.
This can become tricky if you transfer funds on a regular basis and also if the amounts are often the same amount.
Things to remember are:
- Make sure you select the correct account when processing the transfer
- When Xero matches a transfer that has been processed with a bank transaction make sure the dates of the transaction it is matched to are correct. Xero will look for the amount first so on occasion may match with the wrong dated transaction for the right amount.
- In some cases it can be good practice to go into the other account straight away and process the transfer in that account to avoid any problems, especially if you often transfer funds. That way you immediately confirm that the transfer has come through in the other account and match it to the correct transfer.
Make sure you monitor your bank accounts by running Bank Reconciliation reports so that you pick up any transfers that have not been matched with transactions.
This article appeared in our December 2016 newsletter.
