Reconcile
Bank rules are like little robots inside Xero. Once you teach them what to look for, they’ll automatically suggest a transaction match every time those details pop up again—no clicking around or re-entering info needed.
HOW DO YOU USE THIS?
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Manually coding the same expense over and over? Nah. Bank rules take care of the day-to-day stuff, so you can stop wasting brainpower on copy-paste tasks.
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Ever coded fuel to “motor vehicle” one week and “general expenses” the next? Bank rules keep things tidy, using the same account, contact, and tax rate every time
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Less manual entry = fewer typos and miscodes. Bank rules reduce the risk of accidentally assigning your Spotify subscription to “Office Equipment” (true story).
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Instead of guessing what that $25 was for, the rule pre-fills everything. All you need to do is click OK and move on.
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Parking fees, monthly subscriptions, loan repayments, bank fees—bank rules are perfect for all those little repeat costs that show up like clockwork.
WHEN WILL YOU USE IT?
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If you’re always filling up at BP or Z, set a rule to automatically code that to “Motor Vehicle Expenses” with GST. Saves you scanning receipts every time.
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Canva, Xero, or Google Workspace charges? Set a rule that recognises the supplier name and codes it to “Software Subscriptions.” Easy.
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If the same repayment hits your account on the same date each month, use a bank rule to auto-allocate principal and interest amounts.
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Those small, irregular but frequent charges don’t need your full attention—just build a rule for "Parking" or "Toll Payments" and move on.
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Regular service fees from your bank or automatic direct debits can be auto-coded and reconciled without a second thought.
IT ALL BEGINS WITH AN IDEA
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IT ALL BEGINS WITH AN IDEA ✦
HOW TO SET UP A BANK RULE
Let’s say you’ve got a regular parking fee popping up. Here's how you enter it…
From the bank reconciliation screen, find the bank line with the transaction you want to set a rule for.
Click Options, then select Create Bank Rule.
Choose the type of rule:
Spend Money Rule (money going out)
Receive Money Rule (money coming in)
Transfer Money Rule (between accounts)
Under “Conditions,” set the rules Xero should look for—like:
“The Payee contains ‘ParkMate’”
“The Amount is less than $20”
Fill in the details for:
Contact (who it’s from/to)
Account (e.g. Motor Vehicle > Parking)
Tax rate (e.g. 15% GST)
Choose whether the rule should auto-apply to future transactions that match.
Click Save.
Then click OK on the bank reconciliation screen to apply the rule.
Boom. From now on, Xero will suggest those transactions exactly the way you want—no more manual input..
Need to tweak a bank rule? Here’s how to do it:
From your Xero dashboard, click Accounting in the top menu.
Select Bank accounts, then open the account that’s using the rule you want to change.
Head to the Bank Rules tab.
Find the rule you want to update and click Edit.
Make your changes — you can adjust things like:
Conditions (what triggers the rule)
Contact or description
Account code
Tax rate
Click Save to lock in your changes.
Xero will now use your updated rule for all future transactions that match.
What happens next?
When the next payment comes through, Xero will automatically match it to the right invoice or bill. It’ll keep stacking payments until the balance is fully paid — so you’ll always have a clear view of what’s still owed, and your reports will stay accurate.
HOW TO EDIT A BANK RULE
If a rule’s no longer needed or doesn’t fit how you work anymore, here’s how to remove it:
Head to the Bank Rules tab (same place as before).
Click on the rule you want to delete.
Scroll to the bottom and select Delete.
Confirm when Xero asks if you’re sure.
That’s it, the rule’s gone and won’t apply to future transactions.
A couple of things to watch out for:
Don’t accidentally create a new invoice when a second payment comes through just keep matching it to the original one.
Keep an eye on outstanding balances. Xero will track them, but it’s still up to you to follow up and get them paid..
HOW TO DELETE A BANK RULE
