When Xero says one thing and your bank says another
Xero makes it quick to reconcile, which is also how mistakes creep in. Clicking OK on a suggested match, letting a bank rule run unchecked or creating a spend money entry when a bill already existed can leave you with a profit and loss report that looks fine and a balance sheet that does not.
Signs your Xero records need attention
- The statement balance and Xero balance differ on the bank reconciliation report.
- Bills or invoices remain awaiting payment long after they were paid.
- A suspense account or uncategorised balance keeps growing.
- The VAT return shows amounts you can't explain, or no VAT on purchases you know included it.
- Bank rules have been coding transactions to the wrong account for months.
- Balance sheet accounts such as loans, director's loan or accruals carry balances nobody understands.
Our approach to fixing Xero
We start by asking you to invite us as your advisor through Xero's user invitation, so you keep control of access and we never need your password. Then we:
- Run the bank reconciliation summary for each account and compare it with your statements.
- Look for deleted or duplicated statement lines, manual imports and unreconciled items.
- Review account transactions for the accounts that look wrong, including VAT rates used.
- Review and correct bank rules so the same errors stop happening.
- Make the corrections, using journals where a period is locked, and explain any effect on returns already filed.
Bookkeeping errors versus software faults
We fix anything that is a recording problem: wrong matches, wrong accounts, wrong VAT rates, missing or doubled entries. If Xero itself is malfunctioning, for example an error message during login or a feature that won't load, the right route is Xero's support. A feed that has stopped importing is often a reauthorisation issue, which we cover on our bank feed problems page.
What we'll need
Bank statements for the periods involved, copies of any VAT returns submitted, the most recent accounts and a short note of what prompted you to look. If your chart of accounts has grown messy, we can also handle chart of accounts corrections as part of the same piece of work.
Xero help for businesses across Kent
We work with Xero users throughout Kent, including Ashford and Sevenoaks, entirely remotely. Once things are straight we can provide monthly management accounts or train your team through one-to-one software training. Send us a message to get started.
Frequently asked questions
What does a Xero suspense account balance mean?
It usually means transactions were coded somewhere temporary because nobody was sure where they belonged, or that a correction was only half completed. A balance left there distorts the accounts. We review each entry, move it to the right account and aim to clear suspense completely.
Can you change transactions in a period Xero has locked?
A lock date is there to protect figures already reported, so we don't simply unlock and edit history. Usually we post correcting journals in the current period. Where an earlier return or set of accounts needs amending, we explain that separately and agree the approach with you.
Why do my Xero bank rules keep miscoding transactions?
Rules match on descriptions and amounts, so a rule written too broadly will catch unrelated payments, such as every card payment to a large retailer. We review your rules, tighten or delete the faulty ones and correct the transactions they have already coded.
Can you help if my bookkeeper has left and nobody understands the Xero file?
Yes. We review the file, explain what state it's in, correct the errors we find and leave clear notes. We can then carry on the bookkeeping ourselves or show whoever takes over how to keep it in good order.
Xero Accounting Software Support across Kent
We help clients throughout the county, including: