How to import bank transactions in Xero – Teri’s Tips
Learn how to add your contact information in Xero with Teri Cotta.
At Rosemary Bookkeeping, we work closely with our friends and partners at Xero to help our clients get to grips with their bookkeeping.
And there is still a lot to get to grips with.
That’s why our accounting crackpot, Teri Cotta, has been working hard to bring you the top tips to be a Xero whiz and understand its processes, from the terribly simple to the terrifically complex.
And if you’re a visual learner, don’t worry, a full video showing each of these points step by step can be found on our YouTube channel.
In today’s Teri Tips, you’ll see how to import transactions from your online banking into Xero.
Exporting process
Once all the transactions are in place set conversion balances for your bank accounts to make sure you have the correct starting point.
Once your bank feed starts note the date of your first statement line.
You’ll need all your bank statement lines from your conversion date.
The date that you began using Xero until the bank feed starts.
We recommend that you wait until the feed is started before importing transactions manually.
To get the information to import to Xero, log in to your online banking provider.
Search the dates that you need bank statement lines for and export them. For best results, we recommend that you export an OFX or QIF file. CSV files are also compatible but require an extra step.
If you export a CSV, check the date and amount are there for each statement line. Your file needs to have these fields at a minimum.
The other fields are optional, but reconciling your transactions is easier if you include more detail.
The transaction amount needs to be in one column rather than debits and credits separated in two.
If your bank has exported this as two columns, you must consolidate them into one column.
Use negative amounts for money going out of your bank account and positive amounts for money coming in.
Click “Accounting” and “Bank Accounts” to begin.
On the bank account, click “Manage Account” and import a statement.
Upload your exported bank statement file and click import.
If it’s a CSV, you’ll need to match the columns in your bank statement export file to the fields in Xero.
Most files will contain column headers, but if yours doesn’t, deselect this.
Use the drop-downs to match the columns and click save.
Review the import and click okay.
Now you can see your imported bank statement lines in Xero.
The next time you import a CSV into this account, Xero remembers the mapping options. The mapping options can also be changed if required.
Click manage account, edit account details and click statement import options to change the mapping.
Adding a conversion balance
It’s time to add a conversion balance to your bank accounts.
Go to ‘accounting’, ‘advanced’, and select “conversion balances”.
This is the starting point for your accounts and determines the balance going forward as transactions occur.
The conversion date is the day that you began using Xero as your accounting system. The conversion balance is the balance at the end of the day the day before you began using Xero.
Add this value to the conversion balances for the bank account. If the bank account has a positive value, it goes into the debit column.
If the bank account is overdrawn it goes into the credit column.
It’s very important to click save, this confirms the balances that you’ve entered.
You’ll notice that there are two different balances on a bank account. Here’s what they mean.
The statement balance is the conversion plus the sum of all imported statement lines in the bank account.
These statement lines are from the bank feed or ones you’ve manually imported.
The balance in Xero is the conversion balance plus the account transactions you’ve created when reconciling the bank account.
Whenever you reconcile a bank statement line, Xero creates a matching transaction to record the business activity it relates to.
For example, invoice payments or spend money transactions for office expenses. As this blog is about converting to Xero we won’t delve into the day-to-day bank Reconciliation here.
Double and triple-checking
In a perfect scenario where all bank statement lines are imported into Xero and the conversion balance is correct, the statement balance will match what’s on your online banking.
If these totals don’t match, here’s what to check: Refer to your online banking as the source of truth.
Double-check that the conversion balance in Xero is correct. Remember, this is the value the moment before you convert, check this with your online banking and that it matches with Xero.
Check that you’ve imported all bank statement lines.
Compare your online banking with Xero to check that the statement lines begin right after your conversion date.
If a bank feed started after the conversion date and you’ve imported statement lines to where the feed starts, check that there aren’t any missing or duplicate statement lines around this date.
Need help with your bookkeeping?
Teri Cotta is joined worldwide by Rosemary Bookkeeping’s network of Xero-certified bookkeepers.
So, whether you need help choosing the right software for you, using Xero or outsourcing your books, our experts will be able to help.
Take the hassle out of your bookkeeping and get the time back to focus on what matters most by contacting your nearest Rosemary Bookkeeper today.
