Bank reconciliation software for UK businesses
Keep your financial records up to date without manual work. Xero's bank reconciliation software connects to your UK bank through open banking and pulls in transactions automatically. Check matches, and click to accept them. Over 1.8 billion statement lines are matched through Xero every year.
Save time with automated bank reconciliation
Xero's bank account reconciliation software matches transactions, suggests categories, and learns your preferences.
Connect your UK bank
Xero connects to your bank through open banking and pulls in transactions automatically, ready to reconcile.
Review and match transactions
Xero suggests matches for your transactions. Accept in a few clicks, and set up rules to match recurring items fast.
Reconcile anywhere, anytime
Do your bank statement reconciliation at your desk or on the go with the Xero Accounting app on your phone or tablet.
It’s something I’m going to be able to teach my future employees
Xero gives John a better idea of his cash flow at Horsetooth Hotsauce
Why use bank reconciliation software
Xero bank reconciliation speeds up the running of your UK business. Xero's bank reconciliation software imports transactions and suggests matches automatically – you spend less time on data entry and more time on growing your business. 94% of UK customers say Xero saves them time.
- Import bank transactions directly into Xero for a clear view of your cash balances every day
- Spot errors quickly with automated transaction matching
- No more manual data entry – transactions appear in Xero automatically, ready to match
Complete your account reconciliation fast
Your bank data flows into Xero through open banking, so you get daily reconciliation accounting updates on bank transactions, including cash account balances, from any device, at any time. You can check your cash balances, review new transactions, and reconcile from your phone, laptop, or tablet.
- Reconcile on the go with the Xero Accounting app in a spare moment
- Keep your records clean and your VAT returns on track for MTD with automated bank reconciliation
- Reconcile transactions from your desk or on the go – the Xero Accounting app lets you reconcile wherever and whenever you like
Faster matching, smarter reconciliation
Xero's account reconciliation software matches your transactions, categorises them, and applies your bank rules. Just review, adjust if needed, and approve – and you're done. If something doesn't match, use Find & Match to locate the right transaction, or create a new one to reconcile against.
- Match bank statement lines to invoice or bill payments in a few clicks
- No match? Create a new transaction in Xero to reconcile against a bank statement line
- Set up bank rules to match and categorise repeated transactions the same way every time
Reconcile multiple transactions at once
Lots of transactions to get through? Xero’s cash coding lets you view up to 200 statement lines at once, then to sort and reconcile them in bulk. It's available on the Grow, Comprehensive, and Ultimate plans.
- Xero sorts and groups your transactions automatically, so you can reconcile them in one go
- Set up bank rules to manage groups of similar transactions the same way every time
- View, sort, and code up to 200 statement lines at once using the Cash coding tab
Plans to suit your business
Simple
A new plan, specifically for non VAT businesses, with features designed for sole traders and landlords.
Simple
Usually £7
Now £1.40
GBP per month excluding VAT
Save £33.60 over 6 months
- Send invoices and quotes
- Accept online invoice payments^
- MTD for Income Tax ready
- Reconcile bank transactions
- Smart document capture
- View real-time reports
- Automate subcontractor CIS calculations and reports
Bank reconciliation software for the UK
Xero bank reconciliation software connects to your UK bank, so you can reconcile your accounts anytime, anywhere. Set up bank rules for regular payments and let Xero suggest matches for the rest. Stay on top of VAT and MTD for Income Tax obligations with seamless submissions to HMRC.
See how Xero supports your small business
Automatic bank reconciliation with JAX
JAX categorises and matches bank transactions for you when it's highly confident – you stay in control, and do the work you want! JAX uses rules, matching, memory, and prediction to get more accurate over time. Xero matches over 1.8 billion statement lines for businesses every year.
Learn more about automatic bank reconciliation
UK bank feeds and compliance built in
Xero connects to UK banks through open banking, pulling in your transactions automatically. Stay on top of VAT and MTD for Income Tax obligations with seamless submissions to HMRC. Connect payment services like Stripe and GoCardless to your Xero account, and reconcile your bank transactions in Xero.
- Connect your UK bank accounts through open banking – transactions flow in automatically
- Lodge VAT with HMRC and manage CIS obligations directly in Xero to stay MTD-compliant
- Reconcile Stripe UK, GoCardless, Klarna, and Pay by Bank transactions alongside your bank feeds
FAQs on Bank reconciliation software
It’s pretty simple. Getting bank data into Xero for reconciliation is simple. Most banks can connect to Xero so data flows in automatically. Once connected, your bank transactions flow into Xero automatically. Set your opening balance and you're ready to reconcile. Xero suggests matches for your transactions as they come in, so you can review and accept them – no need to enter anything manually.
It’s pretty simple. Getting bank data into Xero for reconciliation is simple. Most banks can connect to Xero so data flows in automatically. Once connected, your bank transactions flow into Xero automatically. Set your opening balance and you're ready to reconcile. Xero suggests matches for your transactions as they come in, so you can review and accept them – no need to enter anything manually.
Yes. Xero pulls in transactions from your bank automatically through open banking, then suggests matches between them and your invoices, bills, and payments. You check the matches and accept them to reconcile.
For even more automation, JAX – Xero's automatic bank reconciliation – categorises and suggests matches when it’s confident of, using rules, matching, memory, and prediction. You can correct any match, and JAX learns from those corrections.
As one Xero customer put it: ‘I would say I'm usually spending seven hours a week. I'll be able to get through reconciling transactions in less than 30 minutes on a given day now.’
Yes. Xero pulls in transactions from your bank automatically through open banking, then suggests matches between them and your invoices, bills, and payments. You check the matches and accept them to reconcile.
For even more automation, JAX – Xero's automatic bank reconciliation – categorises and suggests matches when it’s confident of, using rules, matching, memory, and prediction. You can correct any match, and JAX learns from those corrections.
As one Xero customer put it: ‘I would say I'm usually spending seven hours a week. I'll be able to get through reconciling transactions in less than 30 minutes on a given day now.’
Yes! When done manually, bank reconciliation can be tedious and time-consuming. But with Xero bank reconciliation software, your bank data flows in automatically, Xero suggests matches for you, and you can set up rules to deal with repeated transactions in one go. That turns hours of work into a few minutes of review.
For more, see our guide on what bank reconciliation is and how it works.
Yes! When done manually, bank reconciliation can be tedious and time-consuming. But with Xero bank reconciliation software, your bank data flows in automatically, Xero suggests matches for you, and you can set up rules to deal with repeated transactions in one go. That turns hours of work into a few minutes of review.
For more, see our guide on what bank reconciliation is and how it works.
Yes – if you reconcile transactions regularly using Xero, you'll have an accurate picture of your cash flow, bank balances, and unpaid invoices. Then, use Xero’s reports for clear, detailed insights. By regularly reviewing reports like the Profit and Loss and Balance Sheet in Xero, you can use your financial data to make smart business decisions, and compare your bank statement lines with your transactions in Xero to keep your books in sync.
And of course, your Xero dashboard flags unreconciled transactions so nothing gets missed.
Yes – if you reconcile transactions regularly using Xero, you'll have an accurate picture of your cash flow, bank balances, and unpaid invoices. Then, use Xero’s reports for clear, detailed insights. By regularly reviewing reports like the Profit and Loss and Balance Sheet in Xero, you can use your financial data to make smart business decisions, and compare your bank statement lines with your transactions in Xero to keep your books in sync.
And of course, your Xero dashboard flags unreconciled transactions so nothing gets missed.
Yes. You can edit all fields on reconciled and unreconciled transactions in the Account transactions tab of your bank accounts. If your edits change the total amount, you can delete the transaction and start over using the Remove & Redo function instead. JAX learns how you categorise and reconcile transactions, helping it get smarter over time.
Yes. You can edit all fields on reconciled and unreconciled transactions in the Account transactions tab of your bank accounts. If your edits change the total amount, you can delete the transaction and start over using the Remove & Redo function instead. JAX learns how you categorise and reconcile transactions, helping it get smarter over time.
Yes. Xero’s cash coding lets you reconcile multiple statement lines at once in a spreadsheet-style format. You can view up to 200 lines, sort them, and code similar transactions together.
Cash coding is available on the Grow, Comprehensive, and Ultimate plans. To access it, go to Bank accounts in the Accounting menu, choose the bank account you want to reconcile, then select the Cash coding tab.
Yes. Xero’s cash coding lets you reconcile multiple statement lines at once in a spreadsheet-style format. You can view up to 200 lines, sort them, and code similar transactions together.
Cash coding is available on the Grow, Comprehensive, and Ultimate plans. To access it, go to Bank accounts in the Accounting menu, choose the bank account you want to reconcile, then select the Cash coding tab.
It depends on your business. It’s good to start with:
- automatic transaction matching so you're not entering data manually
- bank feed connectivity through open banking
- bank rules for recurring transactions
- bulk reconciliation for high-volume months
- multi-device access so you can reconcile on the go
- reconciliation reports to compare your bank balance with your records
- multi-user access so your accountant can work alongside you
- MTD compliance for VAT and CIS
91% of Xero customers agree that Xero is easy to use.
Source: survey conducted by Xero of 2,634 small businesses using Xero in United Kingdom, Australia and United States, May-June 2024
It depends on your business. It’s good to start with:
- automatic transaction matching so you're not entering data manually
- bank feed connectivity through open banking
- bank rules for recurring transactions
- bulk reconciliation for high-volume months
- multi-device access so you can reconcile on the go
- reconciliation reports to compare your bank balance with your records
- multi-user access so your accountant can work alongside you
- MTD compliance for VAT and CIS
91% of Xero customers agree that Xero is easy to use.
Source: survey conducted by Xero of 2,634 small businesses using Xero in United Kingdom, Australia and United States, May-June 2024
If Xero doesn't suggest a match, you have a few options.
- Use Find & match to search for the right transaction in your records. If it's a new transaction – like a bank fee or a payment that hasn't been recorded yet – create a new one directly from the reconciliation screen.
- When bank transactions flow into Xero, you can match each bank statement line to a transaction in Xero and reconcile it.
- If you've reconciled something incorrectly, use Remove & Redo to undo it and start again.
If Xero doesn't suggest a match, you have a few options.
- Use Find & match to search for the right transaction in your records. If it's a new transaction – like a bank fee or a payment that hasn't been recorded yet – create a new one directly from the reconciliation screen.
- When bank transactions flow into Xero, you can match each bank statement line to a transaction in Xero and reconcile it.
- If you've reconciled something incorrectly, use Remove & Redo to undo it and start again.
Yes. The Xero Accounting app on iOS and Android lets you review and match bank data, so you can reconcile transactions wherever and whenever you like. Do bank reconciliation at any time, on multiple devices.
Yes. The Xero Accounting app on iOS and Android lets you review and match bank data, so you can reconcile transactions wherever and whenever you like. Do bank reconciliation at any time, on multiple devices.
Check out our small business guides
Bank reconciliation is just one piece of the puzzle. Here are some guides on key topics for business owners.
What is bank reconciliation?
Let's take it back to basics. Once you understand bank reconciliation, you can get it right every time.
How to do bank reconciliation
Making sure every transaction is accounted for isn't just about compliance – it's about financial confidence.
Growing your business
Ready to scale up? Here are ways you can achieve healthy business growth.
Run your entire business with Xero
Bank reconciliation is just the start: Xero helps you run your entire business more efficiently. Automate day-to-day tasks, get paid sooner with online invoicing, and get tailor financial reports for business insights so you can plan with confidence.
Accept online payments
Let customers pay your invoices online – to get invoices paid fast boost your cash flow can bring income to your business more flexibly.
Learn more about accepting payments with XeroTrack project time
Record the time spent on work accurately and with ease, know if you’re going over, and when ready, turn the data straight into an invoice.
Learn more about time tracking with XeroGet instant financial statements
Get a financial health update with Xero’s customisable reports to make informed, confident decisions about the future.
Get instant financial statements
Start using Xero for free
Access Xero features for 30 days, then decide which plan best suits your business.
FAQs about Xero in the UK
Yes, you can connect your Xero account with HMRC to more easily prepare and submit your returns so you never miss a deadline. HMRC recognises Xero’s software, which is also compliant with Making Tax Digital (MTD).
Find out more on running a business at GOV.UKYes, you can connect your Xero account with HMRC to more easily prepare and submit your returns so you never miss a deadline. HMRC recognises Xero’s software, which is also compliant with Making Tax Digital (MTD).
Find out more on running a business at GOV.UKXero payroll offers a range of reports for internal use and helps you meet HMRC requirements each month. You can give your employees self-service access so they can view payslips, request leave, and submit timesheets directly from Xero.
See HMRC rules for running payrollXero payroll offers a range of reports for internal use and helps you meet HMRC requirements each month. You can give your employees self-service access so they can view payslips, request leave, and submit timesheets directly from Xero.
See HMRC rules for running payrollThe 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 plansThe 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 plansNo – 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 XeroNo – 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 XeroYes – 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 the UK.
Check out the Xero App StoreYes – 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 the UK.
Check out the Xero App Store
See how bank transactions flow securely into Xero
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Xero’s bank reconciliation experts are here to help
Our team is here to make bank reconciliation easy for you.
Bank reconciliation in Xero
See how bank reconciliation works, including how to tell the difference between statement lines and transactio
Learn how to reconcile transactions
Reconcile payments between Xero and your bank account, including creating bank rules.
Reconcile your accounts step by step
Review imported bank statement lines and match them to transactions in Xero.
