Bank Reconciliation

Bank Rule – Spend Money (Bank Charges)

This screenshot shows a Spend Money bank rule created to automatically categorize recurring bank charges deducted by UBA Bank. Since bank fees occur frequently and follow a consistent pattern, setting a rule ensures these deductions are instantly coded to the correct expense account during bank reconciliation. 

This improves accuracy, eliminates repetitive manual entry, and speeds up the reconciliation workflow.

Bank Rule Details

Rule Name: Bank Charges – UBA
Transaction Type: Spend Money
Condition Trigger: When the bank statement descriptions contains BANK CHG or CHARGES

Allocation:

• Account: Bank Fess (Expense)

• Tax Rate: Tax Exemption (0)

• Contact: UBA Bank

What Happened:

A bank rule was set up to automatically detect UBA Bank’s periodic charges and categorize them as Bank Charges. Whenever UBA deducts fees—such as maintenance charges, transfer fees, SMS alerts, or card service charges—the rule identifies the transaction based on the descriptions text and allocates it correctly within Xero.

This ensures that every bank fee is consistently recorded without the need for manual coding during reconciliation.

Key Skills Demonstrated

• Creating efficient Spend Money bank rules in Xero

• Automating recurring expense categorization

• Improving reconciliation speed and accuracy

• Ensuring consistent coding of bank fees

• Reducing repetitive data entry

• Maintaining clean and accurate bookkeeping records

Bank Rule – Receive Money (POS Collections)

This screenshot shows a Receive Money bank rule created to automatically categorize POS collections deposited into the UBA Bank account. Since POS settlements occur frequently and follow consistent reference patterns, setting a rule ensures these inflows are instantly posted to the correct income account during bank reconciliation. This improves accuracy, eliminates repetitive manual coding, and speeds up the reconciliation workflow.

Bank Rule Details

Rule Name: POS Collections – UBA
Transaction Type: Receive Money
Condition Trigger: When the bank statement reference / description contains terms like POSDEPOSITE or DEPOSITE 

Allocation:

• Account: Sales / Product Sales (Revenue)

• Tax Rate: Tax Exemption (0)

• Contact: From the Payee

What Happened:

A bank rule was set up to automatically detect UBA Bank POS credits and classify them as Sales Income. Whenever a POS terminal settles funds into the bank account—whether from Moniepoint, Opay, PalmPay, Paystack Terminal, or traditional UBA POS—the rule identifies the transaction based on reference text and allocates it correctly in Xero.

This ensures that every POS deposit is consistently recorded as income without needing manual selection during reconciliation.

Key Skills Demonstrated

• Creating efficient Receive Money bank rules in Xero

• Automating recurring income categorization

• Improving reconciliation speed and accuracy

• Ensuring consistent coding of POS deposits

• Reducing repetitive manual data entry

• Maintaining clean and accurate bookkeeping records

Bank Rule – Transfer Money

This screenshot shows a Transfer Money bank rule created to automate the recording of internal transfers between the company’s bank accounts. Transfers between accounts (e.g., UBA Bank to Zenith Bank) occur frequently and are not revenue or expense. Setting up a rule ensures these movements are accurately reflected in Xero without manual intervention, preventing misclassification and simplifying reconciliation.

Bank Rule Details

Rule Name: Transfer Money – Internal Bank Movement
Transaction Type: Transfer Money
Condition Trigger: When the bank statement reference contain MONEY TRANSFER

Allocation:

• From Account: UBA Bank

• To Account: Zenith Bank

• Tax Rate: Not applicable (transfers are balance sheet movements)

What Happened:

A bank rule was set up to automatically identify internal bank transfers and post them correctly in Xero. Whenever funds are moved between accounts, the rule ensures that the transfer is recorded without affecting income or expense accounts. 

This maintains accurate cash balances across multiple bank accounts and supports smooth reconciliation.

Key Skills Demonstrated

• Automating internal bank transfers in Xero

• Ensuring correct classification of balance sheet movements

• Maintaining accurate cash balances across multiple accounts

• Reducing manual data entry and reconciliation errors

• Improving efficiency and reliability of bank reconciliation workflow

Prepare Statement File for Upload

This screenshot shows the first step in the bank statement import process, where I prepare the bank data file before uploading it into Xero. Preparing the file correctly is essential because it ensures that the import runs smoothly, the system reads the transaction lines accurately, and no errors occur during mapping. 

This stage demonstrates my attention to detail and understanding of how to structure bank data in a format compatible with Xero.

What Happens at This Stage

I organize the raw bank statement into a clean CSV ensuring it includes all required information such as:

• Date

• Payee

• Description 

• Reference 

• Amount

• Transaction Type

• Check Number

I also remove any unnecessary rows, blank lines, merged cells, or formatting that could cause errors during the import process.

Purpose of This Step

Preparing the file carefully ensures that:

• All transactions import correctly

• Dates and amounts match the official bank record

• There are no duplicates

• Xero can easily identify and read the columns during mapping

• The reconciliation process remains clean and accurate

Key Skills Demonstrated

• Preparing accurate CSV files for upload

• Cleaning and organizing raw bank data

• Understanding Xero’s bank import requirements

• Ensuring data integrity before reconciliation

• Preventing mapping or import errors

Map and Assign Columns

This screenshot shows the second stage of the bank statement import process, where I map each column in the uploaded CSV file to the correct field inside Xero. This step ensures Xero understands how to interpret the imported data so that every transaction appears accurately during bank reconciliation.

What Happens at This Stage

After uploading the prepared CSV file, Xero displays each column from the statement and requires me to match (map) them to the correct data fields, such as:

• Date

• Payee

• Description 

• Reference 

• Amount

• Transaction Type

• Check Number

Depending on the bank file format, I may map:

• one Amount column (positive = money in, negative = money out), or

• two separate columns: Money In and Money Out

I verify that the date format (e.g., DD/MM/YYYY) matches Xero’s expectations and ensure that no columns are incorrectly assigned or left unmapped.

A preview of how the transactions will appear after import. I carefully examine the preview to ensure:

• Dates have been interpreted correctly

• Description fields are correct and readable

• Amounts are showing in the right column (Money In or Money Out)

• No duplicate or corrupt lines exist

• Formatting is consistent

Purpose of This Step

Accurate column mapping ensures that:

• All transactions appear correctly classified in Xero

• Deposits and withdrawals are recorded in the right direction (money in vs. money out)

• Descriptions are preserved for easy identification during reconciliation

• No errors occur during the import

• The system can match transactions automatically using bank rules where applicable

Key Skills Demonstrated

• Correctly mapping and assigning CSV columns to Xero fields

• Understanding bank file structures

• Ensuring data accuracy during import

• Avoiding duplication or misclassification errors

• Preparing clean data for efficient reconciliation

Review and Complete Import

This screenshot represents the final stage of the bank statement import process, where I review all uploaded transactions before confirming the import into Xero. At this point, Xero has successfully processed the CSV file, identified valid lines, and confirmed that 48 statement lines are ready to be brought into the system.

What Happens at This Stage

Xero displays a summary showing:

• Total lines detected from the uploaded file

• Number of valid lines ready to import (48 in this case)

• Any errors or excluded lines (if applicable)

Once confirmed, I finalize the process by clicking “Complete Import.”

Purpose of This Step

This review step is crucial because it:

• Ensures the accuracy of all imported transactions

• Prevents incorrect or duplicated data from entering the ledger

• Allows necessary corrections before the import becomes permanent

• Sets the foundation for smooth and error-free reconciliation

What Happened

Xero successfully validated and prepared 48 statement lines for import. After confirming that all lines were correct and properly mapped, I completed the import. These transactions now appear in the bank reconciliation screen, ready to be matched, categorized, or reconciled using bank rules or manual coding.

Key Skills Demonstrated

• Careful review of bank statement imports

• Identifying and correcting potential import issues

• Understanding transaction structures and formatting

• Ensuring clean, accurate, and complete data entry

• Preparing transactions for efficient reconciliation

Account Transactions Review – Pre-Reconciliation 

This screenshot showcases the Account Transactions section of the bank reconciliation process before statement importation and before clicking Match for full reconciliation. At this stage, the listed transactions are visible in Xero, but none have been reconciled yet because the statement lines have not been imported, and no matching action has been performed.
 

This view represents the starting point where transactions exist in the ledger but are not yet aligned with the bank statement.

What Happens at This Stage

Before reconciliation begins, I review the Account Transactions page to:

• Confirm all manually entered or system-generated transactions are complete

• Identify items that may later be matched to incoming statement lines

• Check that categories, accounts, contacts, and tax rates are correct

• Ensure invoices, bills, and transfers are correctly recorded in the ledger

• Verify no duplicates or incomplete entries exist prior to the import

• Prepare the ledger structure so that matching during import will be accurate and seamless
  
  

This stage provides a clear baseline of what Xero already holds before the bank statement is brought in.

Purpose of This Stage

This preliminary review ensures:

• The ledger is clean before bank data is imported

• Missing transactions can be spotted early

• Potential mismatches are prevented

• All manual and system entries are correctly recorded in their appropriate accounts

• The books are structurally ready for bank statement matching

• The reconciliation process will run smoothly once the statement lines arrive

By structuring the records properly at this point, the upcoming reconciliation becomes faster and significantly more accurate.

What Happened

At this stage:

• All existing transactions in the Account Transactions tab are listed

• None of them have been reconciled (status: Not Reconciled)

• No “Match” actions have been applied

• The system is waiting for statement lines that will later be matched

• These ledger transactions provide the foundation for the matching process once the bank statement is uploaded

This screenshot shows the pre-import view, where Xero’s ledger is ready, but reconciliation has not yet begun.

Key Skills Demonstrated

• Understanding the full Xero bank reconciliation workflow

• Reviewing and validating Account Ledger entries before matching

• Preparing financial data for an accurate reconciliation process

• Identifying entries in the ledger prior to statement import

• Ensuring proper setup before applying rules, matches, and categorizations

• Maintaining structured, clean, audit-ready financial records

Bank Reconciliation Summary – Pre Reconciliation

This screenshot showcases the Bank Reconciliation Summary in Xero before any statement importation. At this stage, the system displays the calculated balances, including the Xero ledger balance, outstanding payments, unreconciled statement lines, and the anticipated statement balance. 

Since no statement has been imported yet, the summary provides a baseline view of the account’s status prior to reconciliation.

What Happens at This Stage

Before importing the bank statement:

• I review the Xero ledger balance to confirm it reflects all recorded transactions

• Verify outstanding payments and outstanding receipts that may affect reconciliation

• Check the unreconciled statement lines placeholder for future imported data

• Confirm that the calculated statement balance aligns with expected figures, even though no statement has been imported

• Ensure that all ledger transactions, invoices, and bills are correctly recorded so reconciliation will be accurate once statement lines are uploaded

Purpose of This Stage

The purpose of this stage is to:

• Provide a snapshot of all current ledger balances before reconciliation begins

• Identify any discrepancies or missing transactions before importing the bank statement

• Set up the books to allow accurate matching with incoming statement lines

• Ensure a smooth reconciliation process by verifying Xero’s internal balances first

What Happened

At this stage:

• No bank statement has been imported, so the Imported Balance shows as unavailable

• The summary includes:

  • Balance in Xero (ledger total)

  • Plus Outstanding Payments

  • Less Outstanding Receipts

  • Plus Unreconciled Statement Lines

  • Calculated Statement Balance (based on the above)

• The system is ready to receive imported statement lines for the reconciliation workflow

Key Skills Demonstrated

• Understanding Xero’s Bank Reconciliation Summary functionality

• Reviewing ledger balances and identifying potential discrepancies

• Preparing financial data for statement import and reconciliation

• Ensuring all outstanding transactions are captured before reconciliation

• Maintaining audit-ready and accurate financial summaries

Prepared for Final Reconciliation 

This stage showcases the point after successfully importing all 48 statement lines, where each transaction has been fully classified, categorized, and matched inside Xero. With 0 duplicates detected and all discrepancies resolved, the imported data remains clean, accurate, and reliable. 

At this point, every bank line has been processed using either bank rules, manual coding, or invoice/bill matching, ensuring the entire dataset is properly organized and fully prepared for Match Go and complete reconciliation.

What Happens at This Stage

After the import, I review each of the 48 bank transactions and ensure they are correctly processed by:

• Applying bank rules for recurring items

• Manually coding unique or non-recurring expenses

• Matching customer receipts to sales invoices

• Matching supplier payments to bills

• Assigning transfers between accounts

• Ensuring tax codes are correct

• Confirming accurate category allocation for all inflows and outflows

By the end of this process, every transaction has a clear accounting purpose and is mapped to the correct general ledger account.

Purpose of This Stage

This step ensures:

• No incomplete or uncategorized transactions remain

• Every line in the imported statement has been reviewed

• All customer and vendor payments are accurately matched

• All bank rules have been tested and applied correctly

• The books are fully prepared for reconciliation

• The bank ledger will match the actual bank balance

Correct categorization at this stage sets the foundation for clean financial data, accurate reporting, and seamless bank reconciliation.

What Happened

All 48 statement lines were successfully:

• Categorized (assigned to the correct expense, income, or balance sheet account)

• Classified (record type determined — spend money, receive money, transfer, invoice payment, bill payment, etc.)

• Matched (using bank rules or manual matching)

• Reviewed for accuracy

This means that every transaction is now complete and ready for the final reconciliation step where Xero will confirm that the ledger balance matches the bank statement.

Key Skills Demonstrated

• Full-cycle bank statement management

• Transaction categorization and classification

• Matching entries using bank rules, invoice links, and bill references

• Identifying and resolving discrepancies

• Preparing transactions for final reconciliation

• Ensuring clean, accurate, audit-ready financial data

Bank Reconciliation – Completed

This screenshot showcases the Reconcile Page in Xero after all transactions have been fully reconciled. At this stage, every imported statement line has been matched against the ledger, categorized, and reviewed. The system confirms that the reconciliation is complete with the message:

Great Job! You’ve reconciled all the transactions for this account.

The statement balance now reflects the true bank balance as of 31 Mar 2026, confirming that the ledger aligns perfectly with the bank statement.

What Happens at This Stage

After reconciliation is complete:

• All imported statement lines have been matched with ledger entries

• Any prior discrepancies have been resolved

• Bank rules, manual coding, and invoice/bill matching have been applied

• The statement balance equals the ledger balance, ensuring accuracy

• Xero confirms no unreconciled transactions remain

Purpose of This Stage

The purpose of this stage is to:

• Validate that the books accurately reflect the bank account

• Ensure all transactions are recorded, categorized, and reconciled

• Provide confidence in financial reporting and audit readiness

• Complete the reconciliation workflow, preparing the business for financial statements

What Happened

At this stage:

• The account balance in Xero matches the bank statement balance: ₦101,373,182.57

• No unreconciled statement lines remain

• All transactions, including payments, receipts, transfers, and adjustments, are fully reconciled

• The system indicates the reconciliation process is complete

Key Skills Demonstrated

• Performing full-cycle bank reconciliation in Xero

• Ensuring ledger and bank statement alignment

• Applying bank rules, manual coding, and invoice/bill matching effectively

• Resolving discrepancies and preparing clean, accurate financial data

• Maintaining audit-ready bank records

Account Transactions Review – Post-Reconciliation

This screenshot showcases the Account Transactions section in Xero after completing the bank reconciliation. At this stage, all ledger transactions have been reconciled with the imported statement lines, and the reconciliation status of each transaction is now marked as Reconciled.

What Happens at This Stage

After reconciliation:

• Each transaction in the ledger has been matched with the corresponding bank statement line

• Bank rules, manual coding, invoice, and bill matches have been applied

• The status for all transactions changes to Reconciled

• Any prior discrepancies or unreconciled items have been resolved

• The ledger reflects the accurate account balance

Purpose of This Stage

The purpose of reviewing the account transactions after reconciliation is to:

• Verify that all reconciled transactions are correctly categorized and mapped to the proper accounts

• Ensure there are no remaining unmatched or incorrectly coded items

• Confirm that the ledger balance aligns with the bank statement

• Maintain clean, audit-ready financial records

What Happened

At this stage:

• Every transaction in the Account Transactions tab shows Reconciled status

• The general ledger is fully aligned with the bank statement

• Internal control over transaction accuracy is validated

• The business can now generate trustworthy reports and financial statements

Key Skills Demonstrated

• Reviewing reconciled transactions for accuracy in Xero

• Ensuring ledger and bank statement alignment post-reconciliation

• Validating transaction categories, accounts, and tax codes

• Maintaining audit-ready financial data

Bank Reconciliation Summary – Post-Reconciliation

This screenshot showcases the Bank Reconciliation Summary in Xero after completing the reconciliation process. At this stage, all statement lines have been matched with ledger transactions, and the account balance in Xero aligns perfectly with the bank statement balance. The summary confirms that there are no unreconciled items, outstanding payments, or discrepancies remaining.

What Happens at This Stage

After reconciliation:

• The Xero ledger balance reflects all reconciled transactions

• Outstanding payments and unreconciled statement lines have been cleared

• The statement balance matches the ledger balance exactly

• Any prior discrepancies or manual adjustments are resolved

• The reconciliation summary provides a final overview of cash position

Purpose of This Stage

The purpose of reviewing the bank reconciliation summary after reconciliation is to:

• Validate that all ledger transactions and statement lines have been fully reconciled

• Confirm the integrity of financial records and cash reporting

• Ensure the business can confidently report its bank position

• Maintain audit-ready records for internal and external review

What Happened

At this stage:

• Xero displays a “Great Job! You’ve reconciled all the transactions for this account” message

• All ledger transactions now have Reconciled status

• Statement balance as of 31 Mar 2026 = ₦101,373,182.57

• There are no remaining unreconciled lines or discrepancies

Key Skills Demonstrated

• Full-cycle bank reconciliation in Xero

• Ensuring ledger and bank statement alignment

• Identifying and resolving discrepancies before finalization

• Maintaining accurate, audit-ready financial records

• Using Xero’s reconciliation summary to validate cash positions