Why Your Xero Balance Doesn’t Match Your Bank

‍Xero shows two balances for each bank account: the Xero balance and the bank statement balance. The Xero balance is based on reconciled transactions, while the statement balance comes directly from your bank feed.

The most common reason they don’t match is unreconciled transactions. Bills or transfers may be marked as paid in Xero but haven’t been matched to a bank transaction yet.

To check, review unreconciled items and compare bank statements with account transactions. The reconciliation report can also help pinpoint the difference quickly.