How to use bank rules in Xero to automate your bank reconciliation

Annette Ferguson

Annette Ferguson

How to use bank rules in Xero to automate your bank reconciliation

For example, you may have to regularly code transactions to parking expenses when you are reconciling the bank in Xero. To automate this going forward, just click on “Create Rule”. 

The payee’s name is already pre populated for you. But if you don’t want to restrict it on an exact match, select the “Any Text Field” option and choose Contains the word “parking”.

Adjust the condition in Section 2 to apply all your parking transactions to this one contact.

Section 3 refers to allocating a fixed amount. That enables you to specify an exact dollar amount you want to allocated to an account code, rather than by percentage of the transaction. 

Skip to Section 4 to apply a hundred percent of the transaction to the automobile expenses account. You can split the transaction by percentage to separate account codes if needed.

Under Section 6, Target a Bank Account, you can have this rule apply to all your bank accounts so the rule isn’t just limited to the bank account you’re currently working in if that’s your preference.

Parking is a good title for this rule, and finally, don’t forget to save.

To edit any existing rules, go to Manage Account and Bank Rules. 

Now when your bank activity flows into Xero, parking transactions will be coded automatically just like you set up the rule. The only thing left to do is simply click “Ok”.

 

Thanks ever so much for taking the time to read my post I truly hope you’ve found it useful and insightful. If you have any questions feel free to contact us!

I am Annette Ferguson, CEO of Annette & Co. Chartered Accountant, Profit First Professional and creator of the Business Wealth Engine. We’re also SUPER social so don’t forget to follow. Here’s to your success!