Bank Versus Asset/Liability Accounts
In Xero if you would like to be able to reconcile an account it needs to be a bank account, you don’t have to have linked bank feeds if not required. As such it is an operational decision whether it is a bank account or an asset/liability account.
It is very important that you do not change the bank/credit card accounts in the source file but leave them as is.
For Insight and Accelerate packages, you will be able to change the bank account types as part of the conversion process. With Standard packages, you will receive the bank account types as they were in the source file. Please see more information on our package options
IMPORTANT: If you select your bank accounts to convert as an asset/liability account we cannot complete our quality assurance on bank reconciliation reports prior to delivery. In Xero, you cannot complete a reconciliation report on an asset/liability account.
We recommend that any accounts that require bank feeds or reconciliation be set up as bank accounts or credit cards. Historical bank accounts and Undeposited funds which have had sales transactions made to them should also be setup as a Bank account type to ensure that history is not lost through the contact account.
The benefit of changing the account types to an asset or liability is that you are still able to make payments to these accounts and also do manual journals.
NOTE: If you change a bank account or credit card to an asset or liability this will result in a loss of link between payments and contacts for this account.
If you are uncertain of requirements then keep the bank accounts as bank accounts and change later in Xero if required –
Bank account numbers do not come across as part of our conversion, you will need to add them in Xero.
Bank Account Mapping
Bank Account Mapping is available with Insight and Accelerate Packages. Under the Standard Package we convert the chart of account based on the account type in the source file - for example: Bank Account, Credit Card, Paypal - Will be set up as such ...
Bank Account Mapping - Bank Account / Credit Card / Paypal / Asset / Liability Any account you want to reconcile in Xero, or receive bank feeds for need to be selected as a bank, credit card or PayPal. Each bank requires the accounts to be set up in ...
Chart of Accounts
Chart of Accounts All accounts including bank accounts come across in the conversion regardless of their status. This is because there may be transactions associated with these accounts. If you have accounts that you do not want to use you can ...
How do I delete accounts in Xero that I don't need?
Xero allows you to both delete and archive accounts in the "Chart Of Accounts". We find that it is better to archive accounts instead of deleting them since this function allows you to restore the account if ever needed in the future. We recommend ...
Bank Reconciliation Post Conversion
How to deal with the reconciliation post-conversion can vary depending on how up-to-date the accounting data file was when it was uploaded for conversion. In addition, whether you ordered a history versus balances service will influence when you need ...