The bank feeds are very much central to how Xero is built to work. Everything centers around them. I mentioned earlier in the course, that you really wouldn’t every record a payment that you made with your debit card in Xero, until the following day, when that transaction is downloaded from the bank. That’s when you’d book your office supplies purchase.

The idea behind how Xero’s banking works, is that you reconcile daily. You can run your monthly reports, and cut the dates off based on the same dates that your statement shows, to be sure everything agrees.

You are not going to reconcile your bank accounts in the traditional sense, when you’re using Xero. In other words, you will not enter the ending balance, and check off items. Xero calculates the balance per bank every day, based on what was downloaded. The difference between that, and the balance in Xero would be the un-reconciled items.

You can manually reconcile an item in Xero, but it’s highly recommended that you don’t, unless you really know what you are doing.

As long as you set your bank accounts up with the right starting balance, and you don’t duplicate transactions by manually reconciling, or delete reconciled transactions, your bank feeds should work perfectly, and seamlessly.

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