The Bank Reconcile screen is one of my favourite places in Xero. It was, and still is, what makes Xero a clear leader over the other cloud-based accounting systems. If used properly it puts an end to unnecessary data entry and reconciliations. But there is always a catch – if used properly! It is possible to be unreconciled even if you no more entries in the reconcile screen or if the Statement Balance equals the Balance in Xero.
Xero is a highly complex accounting environment. While the developers have worked wonders to make it simple and user friendly, this approach often masks the fact that it is a complicated accounting system under the hood! The bank reconciliation process in Xero, if provided with correct data and intelligent user interaction, should result in a perfect bank reconciliation where everything balances as expected. But the reality is that this does not always happen.