One of the most impressive features of Xero is that it provides unrivaled visibility into your finances. It has a variety of features to achieve this goal, one of which is the ability to import your bank statements. However, you may find it difficult to do so if you are using the software for the first time.
Don’t worry – this article will show you the ins and outs of importing bank statements into Xero.
How to import a bank statement into Xero
Although Xero is a solid platform, you can’t send your bank statements directly to the program. Instead, you will need to transfer the information from your online banking platform.
This may seem overwhelming, but the process is quite simple. The first step is to create a CSV file. The most common way to do this is to download it directly from your e-banking software:
- Open your online banking app and enter your credentials.
- Find the transaction you want to import into Xero.
- Download it using SCV format.
- If necessary, edit the information before importing it into Xero.
- Make sure your account statements are saved on your PC as a CSV file.
Downloading a bank statement from your e-banking software is easy. But as with everything related to finances, it doesn’t always run smoothly. Your program may prevent you from downloading the file to your computer.
If that’s the case, you can set up your own CSV import file using Xero. Follow the steps below to do so.
- Open Xero and go to the “Accounting” section.
- Choose the message that leads to “Bank Accounts.”
- Find the corresponding bank account.
- Choose the “Manage Account” option and press the “Import Statement” function.
- Use the link provided to download your file.
Please note that if you download your CSV file this way, the template will be regional. What does this mean? It means that the software will determine the region of your file according to your browser language. However, if the platform cannot identify your region, it will default to New Zealand English.
Once your file is ready, you can finally add it to your Xero account.
- Open Xero and navigate to ‘Accounting’.
- Choose the “Bank Accounts” menu and find the account to which you will transfer your bank statement.
- Select “Manage Account,” followed by “Import Return” and “File to Upload.”
- Use the “File to Upload” menu to add your bank statement. Drag and drop the declaration is the fastest option. Alternatively, tap the “Select File” feature to choose an extract from your device.
- Press “Next” and categorize the fields into columns if the platform requires it.
- Choose the preferred date format you want to use for your bank statement.
- Tap “Next” once more and examine your transaction before import. This menu allows you to delete any transfers that you do not want to incorporate into your import.
- After reviewing the information, tap “Complete Import” and that’s it.
How to edit your bank statements before importing them into Xero
As mentioned above, you can import your statement into Xero immediately after downloading or creating your CSV file. The program does not require you to make any adjustments to the file, but this does not mean that you should not do so. Editing some of the information on your statement allows you to manage it more easily once it’s in the system.
There are several types of settings you can make when importing files. One of them is to enter certain information in your fields.
Amount
Make sure your income and disbursements are organized evenly. In other words, don’t put them in separate columns and risk reducing the effectiveness of your Xero toolbox.
Furthermore, the most intuitive way to present your income and expenses is as follows:
- Income – positive values
- Disbursements – negative values
Avoid indicating decimals with commas because it can skew the results, especially if you have a large number of transactions on your statement.
Date
Another great advantage of Xero is that it gives you a large number of formats to choose from. You can find them when you upload your account statements. The most common solutions include:
- DD/MM/YYYY
- DD/MM/YYYY
- YYYY/MM/DD
Description
A description is not mandatory, but it allows you to manage your transactions effortlessly. By providing more details for inpidual transactions, you won’t have to wonder where it came from or why you made the payment. This fits perfectly with your goal: keeping your finances navigable and transparent.
Fork
Your beneficiary details may be the most important information to include on your statement. It tells you who you made the payment to, eliminating any guesswork associated with this process.
You can use existing Xero contacts to specify your beneficiaries. In that case, make sure the name in your Xero contacts is identical to the name on your file. Otherwise, you risk creating duplicates and cluttering your spreadsheet with unnecessary information.
Reference number and check
If you’re like most people, you probably make credit card authorizations or SWIFT payments on a daily basis. However, it can be difficult to distinguish between these transfers unless you use a certain number. That’s where your reference comes into play. Be sure to add it to your file before uploading your return.
The same goes for check numbers. Regardless of who you write it to, you’ll want to have a number next to your check for easier identification.
Import errors
Here are some of the errors you may encounter when importing bank statements into Xero:
- Invalid data: Make sure you are using the correct format.
- Timeout error: Load fewer transactions at a time.
- There was a problem importing the file. Check to see if you are using the correct column formatting or alignment.
Become a Prudent Financial Mind
There’s no need to manually review your transactions when you can upload statements to Xero in seconds. Don’t forget to format your file correctly and include essential data to simplify your financial management.
