Easy-to-use bank reconciliation software for Australia

Your top FAQs about automated bank reconciliation

How do I set up automated bank reconciliation in Xero?

It’s simple, and shouldn’t take more than about 10 minutes. First, connect your Xero organisation with your bank account through Xero’s bank feeds feature. Most banks can connect to Xero so data flows in automatically. Then set your opening balance and you're ready to reconcile. Your transactions should now flow into Xero automatically.

It’s simple, and shouldn’t take more than about 10 minutes. First, connect your Xero organisation with your bank account through Xero’s bank feeds feature. Most banks can connect to Xero so data flows in automatically. Then set your opening balance and you're ready to reconcile. Your transactions should now flow into Xero automatically.

Does Xero have automated bank reconciliation?

Yes – it's something Xero does really well. When you connect your bank, transactions import automatically each day. JAX automatically categorises and matches your bank transactions when it’s highly confident, so you can focus on what really needs your attention. For the rest, just review the suggestions, approve them, and you're done.

Yes – it's something Xero does really well. When you connect your bank, transactions import automatically each day. JAX automatically categorises and matches your bank transactions when it’s highly confident, so you can focus on what really needs your attention. For the rest, just review the suggestions, approve them, and you're done.

Can I do my bank reconciliation on the go?

Absolutely. The Xero Accounting app for iOS and Android lets you review and approve reconciled transactions from anywhere – over your morning coffee, during your commute, or between meetings.

Absolutely. The Xero Accounting app for iOS and Android lets you review and approve reconciled transactions from anywhere – over your morning coffee, during your commute, or between meetings.

Is automated bank reconciliation easier than doing it manually in Excel?

Much easier. Manual bank reconciliation can be tedious and time-consuming, but Xero helps eliminate manual effort and spot errors quickly. With Xero's automatic bank reconciliation, your bank data flows in automatically and JAX automatically categorises and matches your bank transactions when it's highly confident, so you can focus on what really needs your attention while staying in control. You’ll save time and help keep your records accurate and tax compliant.

Much easier. Manual bank reconciliation can be tedious and time-consuming, but Xero helps eliminate manual effort and spot errors quickly. With Xero's automatic bank reconciliation, your bank data flows in automatically and JAX automatically categorises and matches your bank transactions when it's highly confident, so you can focus on what really needs your attention while staying in control. You’ll save time and help keep your records accurate and tax compliant.

How does bank reconciliation connect to my GST and BAS reporting?

Xero tracks GST as you go, ready for your BAS. That means when BAS time comes around, the figures are already there – no scrambling, no manual totalling. You can also view your current cash flow, bank balances, unpaid invoices, and profit insights straight from the Xero dashboard.

Xero tracks GST as you go, ready for your BAS. That means when BAS time comes around, the figures are already there – no scrambling, no manual totalling. You can also view your current cash flow, bank balances, unpaid invoices, and profit insights straight from the Xero dashboard.

Can you edit a reconciled transaction?

Yes. Head to the Account Transactions tab in your bank account in Xero, where you can edit reconciled and unreconciled transactions.

Just check that any edited line amounts add up to the same total as the original reconciled item. If you need to change the total, use the Remove & Redo function to delete and recreate the transaction. View or export the history of changes made to transactions, inventory, fixed assets and contacts.

Yes. Head to the Account Transactions tab in your bank account in Xero, where you can edit reconciled and unreconciled transactions.

Just check that any edited line amounts add up to the same total as the original reconciled item. If you need to change the total, use the Remove & Redo function to delete and recreate the transaction. View or export the history of changes made to transactions, inventory, fixed assets and contacts.

Can I bulk reconcile transactions in Xero?

Yes. Xero's cash coding feature lets you bulk-reconcile multiple statement lines related to cash transactions, displaying them in a spreadsheet format so you can sort, code, and reconcile multiple lines at once. It’s great for high-volume cash transactions like daily sales and recurring expenses. You can view and sort up to 200 statement lines at once, and reconcile them in one go.

Cash coding is available on the Grow, Comprehensive, and Ultimate plans.

Yes. Xero's cash coding feature lets you bulk-reconcile multiple statement lines related to cash transactions, displaying them in a spreadsheet format so you can sort, code, and reconcile multiple lines at once. It’s great for high-volume cash transactions like daily sales and recurring expenses. You can view and sort up to 200 statement lines at once, and reconcile them in one go.

Cash coding is available on the Grow, Comprehensive, and Ultimate plans.

Which Australian banks connect with Xero?

Most banks can connect to Xero so data flows in automatically. Most banks can connect to Xero so data flows in automatically. Once you’ve connected, your transactions import automatically every day.

But if your bank doesn’t offer a direct feed, you can still manually import bank statements into Xero in OFX, QFX or QuickBooks format, or use CSV format.

Most banks can connect to Xero so data flows in automatically. Most banks can connect to Xero so data flows in automatically. Once you’ve connected, your transactions import automatically every day.

But if your bank doesn’t offer a direct feed, you can still manually import bank statements into Xero in OFX, QFX or QuickBooks format, or use CSV format.

What happens when a transaction doesn't match automatically?

If JAX doesn’t have enough confidence to reconcile a transaction, it leaves the bank statement line for you to review and reconcile manually. From there, you can accept a suggested match, create a new transaction to match against the bank line, split the transaction across multiple items, or transfer it between accounts.

This can happen for things like bank fees, first-time suppliers, or unusual amounts. You can create bank rules in Xero to help reconcile regular cash transactions in future.

If JAX doesn’t have enough confidence to reconcile a transaction, it leaves the bank statement line for you to review and reconcile manually. From there, you can accept a suggested match, create a new transaction to match against the bank line, split the transaction across multiple items, or transfer it between accounts.

This can happen for things like bank fees, first-time suppliers, or unusual amounts. You can create bank rules in Xero to help reconcile regular cash transactions in future.

Does Xero keep an audit trail for bank reconciliation?

Yes. Xero keeps track of the time and date of user activity, like when users log in or make changes to transactions, and you can view these records in the History and Notes report and in the History and Notes section at the bottom of transactions like invoices and bills. Xero converts your personal and financial information into code to keep it private, stores your business information in the cloud, and continuously monitors security controls to reduce cybersecurity risks. The GST Audit report is visible in your Xero organisation and helps you review the individual transactions that make up the amounts in your Activity Statement.

Yes. Xero keeps track of the time and date of user activity, like when users log in or make changes to transactions, and you can view these records in the History and Notes report and in the History and Notes section at the bottom of transactions like invoices and bills. Xero converts your personal and financial information into code to keep it private, stores your business information in the cloud, and continuously monitors security controls to reduce cybersecurity risks. The GST Audit report is visible in your Xero organisation and helps you review the individual transactions that make up the amounts in your Activity Statement.

Can accountants use bank reconciliation software for multiple clients?

Of course – Xero is built with accounting practices in mind. From a single dashboard you can access all your client accounts, switch between them instantly, and manage reconciliations across your whole client base.

And Xero features, like shared access and bulk reconciliation tools, make it easy to collaborate with your clients and stay on top of the work. Xero helps accountants and bookkeepers view clients’ bank reconciliation status and other key financial metrics in one place.

Of course – Xero is built with accounting practices in mind. From a single dashboard you can access all your client accounts, switch between them instantly, and manage reconciliations across your whole client base.

And Xero features, like shared access and bulk reconciliation tools, make it easy to collaborate with your clients and stay on top of the work. Xero helps accountants and bookkeepers view clients’ bank reconciliation status and other key financial metrics in one place.

FAQs about Xero in Australia

Can Xero support my returns to the ATO?

Yes. You can connect your Xero account with the ATO (Australian Taxation Office) to help you easily prepare and submit your returns, so you never miss a deadline.

Here’s more info on tax and super from the ATO.

Yes. You can connect your Xero account with the ATO (Australian Taxation Office) to help you easily prepare and submit your returns, so you never miss a deadline.

Here’s more info on tax and super from the ATO.

Does Xero support Single Touch Payroll (STP)?

Yes. Xero complies fully with STP. You can send reports to ATO each payday without any hassle so you have more time for the rest of your business.

Yes. Xero complies fully with STP. You can send reports to ATO each payday without any hassle so you have more time for the rest of your business.

What is the best accounting software for small businesses?

The best accounting software depends on your needs. Xero’s accounting software has flexible plans so you can adjust your subscriptions to access the features you need as your business grows.

Check out Xero’s pricing plans.

The best accounting software depends on your needs. Xero’s accounting software has flexible plans so you can adjust your subscriptions to access the features you need as your business grows.

Check out Xero’s pricing plans.

Do I need to install any software to use Xero?

No – Xero is based in the cloud, so all you need is an internet connection. But you need a multi-factor authentication (MFA) app to log in to Xero. MFA adds an extra layer of security by checking that it’s really you when you log in.

Learn about data protection with Xero.

No – Xero is based in the cloud, so all you need is an internet connection. But you need a multi-factor authentication (MFA) app to log in to Xero. MFA adds an extra layer of security by checking that it’s really you when you log in.

Learn about data protection with Xero.

Does Xero integrate with other apps my business uses?

Yes – the Xero App Store has hundreds of apps to help manage your business, including apps specifically designed for your industry and for doing business in Australia.

Check out the Xero App Store.

Yes – the Xero App Store has hundreds of apps to help manage your business, including apps specifically designed for your industry and for doing business in Australia.

Check out the Xero App Store.

Xero’s bank reconciliation experts are here to help