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Bank and Credit Card Reconciliations

Auto-reconcile bank statement lines in Xero with JAX

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What the source describes

Xero says its automatic bank reconciliation is powered by JAX, which tries to reconcile new statement lines using four methods: Rule (your bank rules), Match (an existing Xero document), Memory (how you reconciled similar items) and Prediction (how other Xero users reconciled similar items). JAX only auto-reconciles when highly confident; otherwise it suggests a match and leaves the final decision to you, and you can challenge or reject its matches.

Result or outcome

According to the source, JAX handles the bulk of routine bank reconciliations automatically when confident, while uncertain lines stay unreconciled with a suggestion for the user to accept, adjust, or reconcile manually. Xero notes the feature requires the Growing plan or above in the US and is turned on from the bank account page.

How to run it

  1. Connect your business bank account to Xero, or import statement data manually if your bank does not connect, and confirm you are on the Growing plan or above.
  2. Go to the bank account page and turn on JAX automation for each account you want it to reconcile.
  3. As statement lines import, let JAX reconcile confident matches, then filter the reconciled list for lines needing attention and accept or reject its suggestions.
  4. Export the lines JAX left unreconciled with your current bank rules and paste them into the prompt on this page to sort them into action groups.
  5. Create any approved bank rules in Xero, attach source documents to reconciled transactions, and check the dashboard shows statement and Xero balances agreeing.

Try it yourself

Copyable prompt

I use Xero with automatic bank reconciliation turned on. Below is an export of the statement lines JAX left unreconciled for [bank account] for [period], plus my current bank rules. For each line, tell me: the most likely matching document or account code, whether a new bank rule would safely cover it in future, and any line that looks like a transfer between my own accounts. Group the results into: accept suggestion, needs a document from the client, and needs investigation. Write any proposed bank rules in plain language with the exact contact and description conditions.

[paste unreconciled lines]
[paste bank rules]

Replace the [bracketed] placeholders. Remove client names, account numbers, and personal data before pasting into any AI tool.

What to review

Open a sample of lines JAX reconciled on its own and reject any match that looks wrong, especially Memory and Prediction matches based on past or other users' patterns. Before adding a bank rule the prompt proposes, test its contact and description conditions against past lines so it cannot catch unrelated transactions. If balances differ, run the bank reconciliation summary to find missing, deleted or duplicated transactions.

Related free download: Bank Reconciliation Cheat Sheet (Printable cheat sheet (PDF))

Source: Xero US (product page)

Not professional advice. This is general information, not accounting, tax, legal or financial advice. Check AI output yourself and consult a licensed professional for your situation. See our Terms of Use.

This entry summarizes a public source. Features, plans, and availability change, so confirm details with the vendor. Tool names are trademarks of their respective owners.

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