02/10/2026
Here's an example of why you need to still check your figures when using cloud based software. If you use automatic bank feeds, it can still go wrong, it can miss a transaction for some reason, or duplicate them. This client's bank account in real time should be £560. Yet Xero is saying it is fully reconciled and correct. After investigation, it was established that Xero had failed to download a bank receipt for £270. So this income wasn't included in the accounts, and the bank account wasn't showing the correct balance.
How to fix? You need to to compare the bank transactions in xero to the original bank statements and identify the error. In this case you then need to add the income in Xero as money received so that Xero and the accounts are correct. Then manually mark the entry off as reconciled. This will then create a bank transaction line to replace the missing entry and show the correct bank balances.
If you're having issues with your software, please drop me a message.