Why is my Xero balance and statement balance different?

The statement balance in Xero is your opening bank balance plus the sum of all the bank statements that have been imported into the bank account.

How to match the two balances if there is a difference.

• Check that the statement balance is correct.

  • It is important to check that the statement balance in Xero matches the actual balance that you see on your bank. If these do not match then follow the next steps to fix the error.

• Reconcile all the bank statement lines for the bank account.

  • Make sure that every transaction has been recorded in Xero through the bank feed. You then need to reconcile all of those transactions that have occurred, if there are future dated transactions these might cause there to be a difference in the statements.

• Check for unreconciled account transactions in Xero.

  • To view unreconciled transactions go to the accounts transactions tab which can be found within the bank account. You can then sort by status to find the transactions that have not been reconciled.

• Make sure that there are no mistakes in the reconciliation.

  • If transactions have been created to make a payment then this can cause discrepancies to occur. When reconciling transactions you need to make sure you are matching invoices and purchase records to the transaction line that is found in the bank feed. If you have a purchase or sales invoice and are creating a statement line within the bank feed, this will then cause the correct transaction which is imported from the bank to be left unreconciled and result in the balances to be different.

There is a full guide to follow on Xero Central which will take you through these steps and more.

Why are the statement balance and balance in Xero different?