By Connor Smith, Accountant at Hive Business.
This process is likely to form the majority of your bookkeeping: The business bank account.
There are two main stages:
- Uploading the Bank Statements
- Reconciling the Bank Account
There are a few ways you can upload your bank statements to Xero. The easiest method is to set up a Direct Bank Feed. Once set up, these secure feeds automatically connect to your online banking and download your transactions in real time. Everything will be ready to reconcile the moment you log in. Details on how to set up these bank feeds can be found here along with a list of the eligible accounts.
However, maybe your bank account doesn’t permit direct feeds, or you want to go about this in a different way. No problem. Importing a statement is just as easy. This blog is going to outline how to upload statements to Xero.
A statement can be imported to Xero in a number of formats, the most common being a CSV file. Most bank statements downloaded via online banking are often in a CSV format by default, making this normally the go to format. You will need to adjust your CSV to be able to upload correctly to Xero.
EXAMPLE: When your bank statement is first downloaded
However, all Xero needs to be able to successfully import your statement is the transaction date, description and amount. You don’t even need column headings. You’ll need to adjust your CSV as necessary.
EXAMPLE: When your bank statement is ready to upload to Xero
Note how both bank payments and receipts have been moved into on column. Payments should appear as negative values in your spreadsheet and receipts as a positive. When the file is in a similar format to the above, it is ready to be uploaded to Xero.To import the statement, follow these steps:
1. Select Bank Account
Select the bank account you wish to import to from the dashboard and locate the ‘Manage Account’ button near the top of the page. From this dropdown, select ‘Import Statement’.
2. Select the saved CSV file
Use the browse function to select the saved CSV file from your folders. Once uploaded, click import and your statement lines will be successfully imported.
All the transactions will then be sat in the reconcile section of the bank account. We are now at the same stage as those who use Direct Bank Feeds. Once you’ve uploaded your bank statements you’re ready to reconcile the bank.
For more information about how being a client of Hive and using Xero will positively impact your business, please call 01872 300232 or email us at hello@hivebusiness.co.uk.
