If you have Xero as your bookkeeping software for your dental business, you will need to make sure your bank accounts are all present and correct before your accountant reviews it at your financial year-end. The year-end review is in place to ensure your bookkeeping figures are accurate and up to date in order to get started with the preparation of your financial accounts.

If you don’t have everything set-up correctly it can cause delays and will mean you don’t have access to real time financial information when you need it.

This guide outlines the key steps to setting up new bank accounts, verifying bank balances, and troubleshooting any common issues with bank feeds or reconciliations. By following these straightforward steps, you’ll be able to ensure your Xero account is properly maintained, reducing the chances of discrepancies and ensuring accurate reporting.

How to set up a new bank account on Xero

It’s crucial that all bank accounts associated with your business are properly tracked in Xero. A common mistake occurs when companies open new bank accounts, credit cards, or savings accounts but fail to add them to Xero. To avoid this, follow the steps below to set up any new bank accounts on Xero:

• Log into Xero – confirm that you’re working in the correct company profile by checking the company name in the top right corner of the screen.
• Navigate to the “Accounting” tab at the top of your screen.
• Select “Bank Accounts” from the drop-down menu.
• Click the “Add Bank Account” button in the top right corner.
• Follow the prompts and input your bank details.

How to check your bank balance on Xero

Regularly checking your bank balance on Xero ensures that the data matches your bank statements. This step is crucial before we begin reviewing your Xero account. Here’s how to verify your bank balance:

• Log into Xero and confirm you’re working in the correct company profile.
• Click on the name of the bank account you want to review.
• Click on “Reconciliation Report”.
• Choose the date range for your review and click “Update”.
• Compare the “Statement Balance (calculated)” with the balance shown on your bank statement for the same date.

If the balances do not match and you’re a client, we can assist you to ensure it is all correct. Gather your historical bank statements and send them to the team.

How to renew a bank feed on Xero

One common issue with bank balances in Xero is that the bank feed may drop out. If this happens, transactions may not pull through properly, or duplicates may be created. To prevent this, it’s a good idea to renew your bank feed regularly:

• Log into Xero and confirm the correct company profile.
• Scroll to the bank account you wish to renew the feed for.
• Click the three dots in the top right corner of the bank account.
• Select “Renew Bank Feed”.

How to reconnect a bank feed on Xero

In case the bank feed disconnects, follow these steps to reconnect it:

• Log into Xero and confirm you’re on the correct company profile.
• Scroll to the bank account with the disconnected feed. You’ll see a red warning triangle if the feed has dropped out.
• Click “Reconnect Bank Feed”. You’ll be prompted to log in to your bank account.
• Select the option to allow the feed to renew every 90 days. This minimizes the need for frequent logins.
• Once the feed is reconnected, follow the steps above to check the balance.

If there are discrepancies after reconnecting and you’re a client, we can help fix it. We’ll need your statements for the financial year.

How to reconcile transfers between bank accounts on Xero

Improper reconciliation of transfers between accounts can cause discrepancies in your bank balance. This is especially common when transferring payments between accounts like a savings account or credit card. Here’s how to reconcile transfers between bank accounts on Xero:

• Log into Xero and confirm you’re working in the correct company profile.
• Scroll to the bank account where you’d like to begin the reconciliation and click the blue “Reconcile” button.
• For any transfers to or from another account, select the “Transfer” option instead of the default “Create” option.
• A list of your other accounts will appear. Select the correct receiving account.
• After reconciling all transfers out of one account, go to the receiving account. The transferred payment will be highlighted in green and ready to reconcile.
• If the payment isn’t automatically recognized, it may be due to selecting the wrong account initially.

By following these steps, you will be able to ensure that your Xero account is accurate, with all bank feeds and transactions properly reconciled.
Regularly reviewing and updating your bank details, checking balances, and maintaining an active bank feed will help you avoid errors and ensure that your accounts are ready for review at any time.

If you need support with Xero and you’re not yet a client of Hive, get in touch and we’ll talk you through how to join us.