---
title: The bank reconciliation screen explained
description: The bank reconciliation screen explained
---

[Skip to content](https://help.1stformations.co.uk/accounting-service/the-bank-reconciliation-screen-explained#main-content)

[![image 4](https://help.1stformations.co.uk/hubfs/image%204.svg)](https://www.1stformations.co.uk/)

- [Help Centre](https://help.1stformations.co.uk/)

Open main navigation

Close main navigation

- [Help Centre](https://help.1stformations.co.uk/)
- [Login](https://www.1stformations.co.uk/login/)

[Login](https://www.1stformations.co.uk/login/)

 How can we help you?

- There are no suggestions because the search field is empty.

1. [Accounting Service](https://help.1stformations.co.uk/accounting-service?hsLang=en-gb)
2. [Using Xero](https://help.1stformations.co.uk/accounting-service/using-xero?hsLang=en-gb)
3. [Getting Started with Xero](https://help.1stformations.co.uk/accounting-service/using-xero?hsLang=en-gb#getting-started-with-xero)

# The bank reconciliation screen explained

## The layout in Xero and working through the queue of transactions - explained

The bank reconciliation screen is where you match your bank feed transactions to your Xero records. Xero presents each unmatched transaction and suggests the correct match.

### The layout

Unreconciled bank transactions appear on the left. Xero's suggested match appears on the right. Each row gives you three options: OK (confirm the suggested match), Create (create a new entry for a transaction not yet recorded), or Find and Match (manually search for the correct match from all outstanding invoices and bills).

### Working through the queue

Start at the top and work down. For each transaction, confirm the match if it looks right. For unrecognised transactions (bank charges, direct debits not yet set up in Xero), select ‘Create’ and code to the correct account. For payroll payments, VAT payments, and PAYE payments, use Find and Match to link them to the liability entries we post monthly.

💡 **Good to know:** Reconcile weekly rather than monthly. A week of transactions takes about 10 minutes. A month of transactions takes 45 minutes. Three months accumulated before a VAT return deadline can take hours. Build the weekly habit from day one.

### Not found what you're looking for?

Please get in touch and we'll be happy to help:

**Email:** You can submit a request using our [contact form](https://forms.1stformations.co.uk/contact/)

**Phone:** 020 3897 2233

**Live Chat:** Select the live chat icon on the bottom right

- [Your Plan](https://help.1stformations.co.uk/accounting-service/your-plan?hsLang=en-gb#main-content)

    - [Understanding Your Plan](https://help.1stformations.co.uk/accounting-service/your-plan?hsLang=en-gb#understanding-your-plan)
    - [Compliance Included in Your Plan](https://help.1stformations.co.uk/accounting-service/your-plan?hsLang=en-gb#compliance-included-in-your-plan)
    - [Your Xero Plan](https://help.1stformations.co.uk/accounting-service/your-plan?hsLang=en-gb#your-xero-plan)
    - [Add-ons Explained](https://help.1stformations.co.uk/accounting-service/your-plan?hsLang=en-gb#add-ons-explained)
- [Working with Us](https://help.1stformations.co.uk/accounting-service/working-with-us?hsLang=en-gb#main-content)

    - [How to Contact Us](https://help.1stformations.co.uk/accounting-service/working-with-us?hsLang=en-gb#how-to-contact-us)
    - [Your Accountant and Support Team](https://help.1stformations.co.uk/accounting-service/working-with-us?hsLang=en-gb#your-accountant-and-support-team)
    - [Keeping Your Details Up to Date](https://help.1stformations.co.uk/accounting-service/working-with-us?hsLang=en-gb#keeping-your-details-up-to-date)
- [New Company Essentials](https://help.1stformations.co.uk/accounting-service/new-company-essentials?hsLang=en-gb#main-content)

    - [Getting Started](https://help.1stformations.co.uk/accounting-service/new-company-essentials?hsLang=en-gb#getting-started)
    - [Before and Beyond Trading](https://help.1stformations.co.uk/accounting-service/new-company-essentials?hsLang=en-gb#before-and-beyond-trading)
- [What You Can and Can't Claim](https://help.1stformations.co.uk/accounting-service/what-you-can-and-cant-claim?hsLang=en-gb#main-content)

    - [Benefits, Perks, and Grey Areas](https://help.1stformations.co.uk/accounting-service/what-you-can-and-cant-claim?hsLang=en-gb#benefits-perks-and-grey-areas)
    - [Mileage, Travel and Subsistence](https://help.1stformations.co.uk/accounting-service/what-you-can-and-cant-claim?hsLang=en-gb#mileage-travel-and-subsistence)
- [Xero Training and Analytics](https://help.1stformations.co.uk/accounting-service/xero-training-and-analytics?hsLang=en-gb#main-content)

    - [Weekly Xero Training Sessions](https://help.1stformations.co.uk/accounting-service/xero-training-and-analytics?hsLang=en-gb#weekly-xero-training-sessions)
    - [Xero Health Checks](https://help.1stformations.co.uk/accounting-service/xero-training-and-analytics?hsLang=en-gb#xero-health-checks)
    - [Syft Analytics](https://help.1stformations.co.uk/accounting-service/xero-training-and-analytics?hsLang=en-gb#syft-analytics)
- [Tax Reviews and Webinars](https://help.1stformations.co.uk/accounting-service/tax-reviews-and-webinars?hsLang=en-gb#main-content)

    - [Annual Tax Efficiency Review](https://help.1stformations.co.uk/accounting-service/tax-reviews-and-webinars?hsLang=en-gb#annual-tax-efficiency-review)
    - [Quarterly Business Performance Review](https://help.1stformations.co.uk/accounting-service/tax-reviews-and-webinars?hsLang=en-gb#quarterly-business-performance-review)
    - [Topical Webinars](https://help.1stformations.co.uk/accounting-service/tax-reviews-and-webinars?hsLang=en-gb#topical-webinars)
- [Bookkeeping Basics](https://help.1stformations.co.uk/accounting-service/bookkeeping-basics?hsLang=en-gb#main-content)

    - [Day-to-Day Bookkeeping Workflow](https://help.1stformations.co.uk/accounting-service/bookkeeping-basics?hsLang=en-gb#day-to-day-bookkeeping-workflow)
    - [Bank Reconciliation](https://help.1stformations.co.uk/accounting-service/bookkeeping-basics?hsLang=en-gb#bank-reconciliation)
    - [Recording Sales and Purchases](https://help.1stformations.co.uk/accounting-service/bookkeeping-basics?hsLang=en-gb#recording-sales-and-purchases)
    - [Managing Receipts and Best Practice](https://help.1stformations.co.uk/accounting-service/bookkeeping-basics?hsLang=en-gb#managing-receipts-and-best-practice)
- [VAT Registration and Submissions](https://help.1stformations.co.uk/accounting-service/vat-registration-and-submissions?hsLang=en-gb#main-content)

    - [Do I Need to Register for VAT](https://help.1stformations.co.uk/accounting-service/vat-registration-and-submissions?hsLang=en-gb#do-i-need-to-register-for-vat)
    - [Submitting VAT Returns](https://help.1stformations.co.uk/accounting-service/vat-registration-and-submissions?hsLang=en-gb#submitting-vat-returns)
    - [VAT on Sales and Purchases](https://help.1stformations.co.uk/accounting-service/vat-registration-and-submissions?hsLang=en-gb#vat-on-sales-and-purchases)
    - [VAT Payments and Schemes](https://help.1stformations.co.uk/accounting-service/vat-registration-and-submissions?hsLang=en-gb#vat-payments-and-schemes)
- [Paying Yourself and Employees](https://help.1stformations.co.uk/accounting-service/paying-yourself-and-employees?hsLang=en-gb#main-content)

    - [Paying Directors: Salary vs Dividends](https://help.1stformations.co.uk/accounting-service/paying-yourself-and-employees?hsLang=en-gb#paying-directors-salary-vs-dividends)
    - [Your Payslip and National Insurance](https://help.1stformations.co.uk/accounting-service/paying-yourself-and-employees?hsLang=en-gb#your-payslip-and-national-insurance)
    - [Dividends: Legal Process](https://help.1stformations.co.uk/accounting-service/paying-yourself-and-employees?hsLang=en-gb#dividends-legal-process)
    - [Payroll Essentials for New Directors](https://help.1stformations.co.uk/accounting-service/paying-yourself-and-employees?hsLang=en-gb#payroll-essentials-for-new-directors)
    - [Hiring and Employment Status](https://help.1stformations.co.uk/accounting-service/paying-yourself-and-employees?hsLang=en-gb#hiring-and-employment-status)
- [Corporation Tax and Year-End](https://help.1stformations.co.uk/accounting-service/corporation-tax-and-year-end?hsLang=en-gb#main-content)

    - [Corporation Tax Fundamentals](https://help.1stformations.co.uk/accounting-service/corporation-tax-and-year-end?hsLang=en-gb#corporation-tax-fundamentals)
    - [Allowable Expenses and Year-End Planning](https://help.1stformations.co.uk/accounting-service/corporation-tax-and-year-end?hsLang=en-gb#allowable-expenses-and-year-end-planning)
    - [PAYE and Payroll Basics](https://help.1stformations.co.uk/accounting-service/corporation-tax-and-year-end?hsLang=en-gb#paye-and-payroll-basics)
    - [Director's Loan and HMRC Communications](https://help.1stformations.co.uk/accounting-service/corporation-tax-and-year-end?hsLang=en-gb#directors-loan-and-hmrc-communications)
    - [Losses, Rates and Reliefs](https://help.1stformations.co.uk/accounting-service/corporation-tax-and-year-end?hsLang=en-gb#losses-rates-and-reliefs)
- [Invoices & Payments](https://help.1stformations.co.uk/accounting-service/invoices-payments?hsLang=en-gb#main-content)

    - [Creating Invoices and Getting Paid](https://help.1stformations.co.uk/accounting-service/invoices-payments?hsLang=en-gb#creating-invoices-and-getting-paid)
    - [Invoice Numbering and Record Keeping](https://help.1stformations.co.uk/accounting-service/invoices-payments?hsLang=en-gb#invoice-numbering-and-record-keeping)
- [Personal Tax for Directors](https://help.1stformations.co.uk/accounting-service/personal-tax-for-directors?hsLang=en-gb#main-content)

    - [Drawing Money from Your Company](https://help.1stformations.co.uk/accounting-service/personal-tax-for-directors?hsLang=en-gb#drawing-money-from-your-company)
    - [Self Assessment Practical Guide](https://help.1stformations.co.uk/accounting-service/personal-tax-for-directors?hsLang=en-gb#self-assessment-practical-guide)
    - [National Insurance and Benefits](https://help.1stformations.co.uk/accounting-service/personal-tax-for-directors?hsLang=en-gb#national-insurance-and-benefits)
    - [Household Finances](https://help.1stformations.co.uk/accounting-service/personal-tax-for-directors?hsLang=en-gb#household-finances)
- [Using Xero](https://help.1stformations.co.uk/accounting-service/using-xero?hsLang=en-gb#main-content)

    - [Getting Started with Xero](https://help.1stformations.co.uk/accounting-service/using-xero?hsLang=en-gb#getting-started-with-xero)
    - [Bank Feeds and Making Tax Digital](https://help.1stformations.co.uk/accounting-service/using-xero?hsLang=en-gb#bank-feeds-and-making-tax-digital)
    - [Xero for VAT and Payroll](https://help.1stformations.co.uk/accounting-service/using-xero?hsLang=en-gb#xero-for-vat-and-payroll)
- [Understanding your Numbers](https://help.1stformations.co.uk/accounting-service/understanding-your-numbers?hsLang=en-gb#main-content)

    - [Key Accounting Terms Explained](https://help.1stformations.co.uk/accounting-service/understanding-your-numbers?hsLang=en-gb#key-accounting-terms-explained)
    - [Reading your Financial Reports](https://help.1stformations.co.uk/accounting-service/understanding-your-numbers?hsLang=en-gb#reading-your-financial-reports)
    - [Using Your Numbers to Make Decisions](https://help.1stformations.co.uk/accounting-service/understanding-your-numbers?hsLang=en-gb#using-your-numbers-to-make-decisions)
    - [Your Compliance Calendar](https://help.1stformations.co.uk/accounting-service/understanding-your-numbers?hsLang=en-gb#your-compliance-calendar)

- Terms & Conditions
- Privacy Policy
- Cookie Policy

[![1stformations logo white](https://help.1stformations.co.uk/hs-fs/hubfs/1stformations%20logo%20white.png?width=142&height=30&name=1stformations%20logo%20white.png "1stformations logo white")](https://www.1stformations.co.uk)

<https://www.facebook.com/> <https://www.twitter.com/> <https://www.instagram.com/> <https://podcasts.apple.com/> [mailto:email@email.com](mailto:email@email.com)

 Copyright 2026 © 1st Formations  
We are proud to be a Certified B Corporation™