On Xero, bank reconciliation is already so simple that it has a fun, game-like quality. When you’re reconciling with the click of a button, it might not seem like things could get any easier.
Enter Cash Coding. It’s an even faster, more efficient way to reconcile your clients' bank transactions in Xero. When you’re looking to batch categorize, Cash Coding is your elusive unicorn.
If you’re an advisor, there’s no need to key bank statements or code individual lines. Forget about rummaging through a whole year’s worth of transactions and receipts. With Xero, bank feeds flow in daily and you can code them in bulk on one screen with Cash Coding.
Cash coding is a hidden gem in Xero. While not all advisors know about it, they should. Here are 10 reasons why you should be using Cash Coding:
- Bank statement lines are ordered into sortable columns to group similar items
- Bank rules flow through to Cash Coding
- Apply bank rules to selected transactions, as well as set up new bank rules from within the Cash Coding screen
- Sort by date, payee, reference, description and amounts to code similar transactions in one go
- Split transactions
- Switch between bank accounts easily
- Show lines with suggested matches
- "Show more" to reconcile as many lines as you need to in one go
- You can bulk select a range of accounts and tax rates for consistent coding
- It increases your accuracy by creating a matching spend or receive money transaction when you save and reconcile
The Xero Cash Coding tab is accessible to advisors or standard users with Cash Coding permission.
You can select to show non-cash items which Xero recognizes as a match to outstanding invoices. Now you don’t have to reconcile transactions that are meant to be matched with invoices or bills and are reconciled as usual on the main bank reconciliation screen once Cash Coding is complete.
To access Cash Coding, simply select the cash coding tab from the bank reconciliation screen.
Your Cash Coding Quick Tips Here
- "Show More" so you can see all transactions on the page and reconcile all grouped transactions in one go
- If bank rules are defined they will flow into cash coding, enabling you to "Save & Reconcile All." Every transaction with a rule applied will automatically reconcile leaving only the uncoded remaining
- Sort the columns first to group all similar bank transactions together, i.e., received generally coded to "Sales" (be careful of invoice payment)
- Apply bank rules where applicable
Xero cash coding is a powerful tool that gives accountants the ability to reconcile transactions quickly while still retaining a high level of control.
Jay Kimelman is founder and Chief Technology Officer of the digital CPA, a technology-focused accounting firm. Jay has served in the role of CFO, CIO and business owner. His passion is helping other bookkeepers, accountants and CPA firms utilize technology to support themselves and their clients do beautiful business. He was awarded the "Xero MVP" award in 2016, and now serves as a Xero Ambassador.