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Reconciling your bank account with Xero

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Amelia Goldberg
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Overview

The Bill.com Money In / Out Clearing accounts help you with reconciliation. We'll show you how below. 

 

How bills are paid with Bill.com Money In / Out Clearing accounts

When you set up your Bill.com account, we automatically create two new bank accounts in Xero. These accounts are not tied to "real" bank accounts, but instead help facilitate payments. They are often referred to as "clearing" accounts. 

You'll see them on your Xero dashboard the next time you log in. 

Paying a bill in Bill.com will result in a payment being applied to the invoice in Xero.  That payment will be made out of the corresponding Bill.com Money Out Clearing Account for AP invoices and Bill.com Money In Clearing Account for AR invoices.

 

As multiple bills are paid in Bill.com, you’ll see the balance of the Bill.com Money Out clearing account change.



Bill.com makes a single withdrawal from your checking or saving account to pay multiple bills.  To facilitate reconcilation of your bank feed, Bill.com will create a bank transfer between your checking/savings account and the Bill.com Money Out/In Clearing Account.

 

 

Reconciling the Bill.com Money Out/In Clearing Accounts

Reconciling the bank transfer from the clearing account with your checking/savings account will not automatically mark the individual transactions in the Bill.com Money Out/In Clearing account as reconciled.

Within the Bill.com Money Out Clearing account, if the desired status for each line item needs to be “Reconciled”, it will need to be manually marked as reconciled.

Before you can manually reconcile, you will need to enable "Mark as Reconciled" on the Money out Clearing account in Xero:

Enable or disable Mark as Reconciled 

 

IMPORTANT NOTE

Historically, we only made one withdrawal from your bank account for all the payments you have scheduled on a given Process Date. However, we now make two "scheduled payment pickups" each day.

What this means

All payments scheduled before 3PM PT on the banking day before the Process Date will be picked up during the first pick up run, and will be withdrawn from your bank account as a lump sum. Any payments scheduled after 3PM PT on the same day, with the same Process Date, will be picked up during the second pick-up run, and will be withdrawn from your bank account in a second lump sum.

  • Example: Monday at 12PM PT, you schedule 3 payments with Tuesday as the Process Date (total: $300). Four hours later, at 4PM PT,  you schedule 3 more payments with Tuesday as the Process Date (total: $400). On Tuesday, two lump-sum withdrawals are made from your bank account - one for $300 and one for $400. All your bills are still paid on time, the same as if we had just made one lump-sum withdrawal.