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Need to do this
[...] When you switch over to Xero from another bookkeeping system, you may have checks that you have received but have yet to be deposited in your bank account. This means you’ll have an undeposited (uncleared or unbanked) account you need to create in Xero when setting up your accounts. Here is Xero’s explanation of how to do so http://blog.xero.com/2008/08/manage-uncleared-funds/. [...]
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