Why Your Bank Balance Doesn’t Match in Xero (And How to Fix It)

One of the most common issues we see when businesses first start using Xero is this: “My Xero balance doesn’t match my bank balance.” This usually happens during initial setup, and it’s no one’s fault — but it does need to be fixed properly.

Erika Williams

12/16/20251 min read

The most common cause: missing transactions

Here’s the typical scenario:

Bank account is added to Xero
A CSV file is imported for past transactions
The bank feed is connected
The feed goes live from a later date
A gap occurs between the CSV and the live feed

Those missing transactions mean your balance will never match.

Other common causes include:

Duplicate imports
Incorrect opening balances
Deleted or unreconciled transactions
Feed start dates not aligned
Personal transactions removed incorrectly

How to fix it:

Identify the feed start date
Compare Xero transactions to the bank statement
Locate gaps or duplicates
Import missing transactions correctly
Adjust opening balances if required

How to prevent it:

Plan the setup before importing anything
Match CSV end dates with feed start dates
Reconcile against a real bank statement
Ask for help early
Xero is very accurate — but only when the data going in is complete.