Work sample · Example figures
Xero bank reconciliation: before and after
A trades business whose bank account has not been reconciled for months. The backlog is cleared line by line, bank rules are set for the repeat items, and the account ends at a difference of 0.00.
A walkthrough of how I would approach this project. The figures are examples for a fictional business, not a client.
- Area
- Bookkeeping
- Tools
- Xero
- Typical scope
- US$150–400
- Timeline
- About 2 weeks · 4 fixed milestones
01The problem
The bank feed is connected, but nobody has kept up with it. Receipts sit unmatched, bills look unpaid when they are paid, and the balance in Xero no longer agrees with the bank.
- A balance in Xero that is tens of thousands out from the bank
- Invoices that look unpaid, so customers are chased for money already received
- Reports the accountant cannot rely on
- A month-end that starts with a week of catching up
02Approach
- Look
Read-only review of the feed, the open invoices and bills, and the last reconciliation. The backlog is counted and sorted by type.
- Match
Receipts are matched to invoices and payments to bills. Duplicates and stale entries are listed, then removed with a reason.
- Set rules
Bank rules for fuel, software, bank fees and other repeat items, so most lines clear themselves next month.
- Hand over
Statement balance and Xero balance agreed at a set date, a one-page monthly routine, and a list of anything that needed a decision.
03Exhibit
Before: Business Cheque Account
| Statement balance | 48,210.55 |
| Balance in Xero | 31,874.20 |
| Unreconciled bank lines | 143 |
| Duplicate or stale entries in Xero | 9 |
After: Business Cheque Account
| Statement balance | 48,210.55 |
| Balance in Xero | 48,210.55 |
| Unreconciled bank lines | 0 |
| Duplicate or stale entries in Xero | 0 |
| What the 143 lines were | Lines | How they were cleared |
|---|---|---|
| Customer receipts | 61 | Matched to the open invoice |
| Supplier payments | 38 | Matched to the bill, or a bill created |
| Repeat items (fuel, software, bank fees) | 27 | Cleared by new bank rules |
| One-off spend with no document | 11 | Coded, receipt requested |
| Transfers between accounts | 4 | Transfer entry created |
| Duplicates | 2 | Removed, reason noted |
| Total | 143 | Unreconciled lines at handover: 0 |
How the backlog built up (unreconciled lines at each month-end)
04How to read it
- The same account, on the same date: a difference of $16,336.35 at the start and 0.00 at handover.
- The 143 lines are shown by type, so you can see where the time went and which part the bank rules now handle.
- The bar chart shows how the backlog built up, which is why a monthly routine matters more than a one-off clean-up.
05Scope
| Area | Included |
|---|---|
| Review | Read-only look at the bank feed, open invoices and bills, and the last reconciliation, with a written findings list |
| Backlog | Every unreconciled line cleared for the agreed period, matched or coded, with a note on anything uncertain |
| Duplicates | Duplicate and stale entries listed and removed, with a reason for each |
| Bank rules | Rules created and tested for repeat items |
| Check | Statement balance agreed to the Xero balance at a named date, with a reconciliation report saved |
| Handover | A one-page monthly routine and a 30-minute walkthrough |
| Not included | Changing the chart of accounts, or moving to different accounting software |
06Milestones and fee
| Milestone | Deliverable | Timing | Share of fee |
|---|---|---|---|
| M1 Review | Findings list, count of lines by type, fixed quote | Days 1 to 3 | 20% |
| M2 Backlog cleared | All lines for the period matched or coded | Week 1 to 2 | 40% |
| M3 Rules and check | Bank rules live, difference at 0.00 | Week 2 | 25% |
| M4 Handover | Monthly routine and walkthrough | Week 2 | 15% |
Typical scope for this kind of project: US$150–400
About 2 weeks · 4 fixed milestones. The systems health check (US$150, fixed) comes first and confirms the scope. Extra hourly work is US$40 per hour, agreed before it starts.
Tell me what is going wrong in your books and I will say where I would look first.
Send a short note through the form on the home page. I will reply with where I would start, and whether the US$150 systems health check is the right first step.