BigCommerce + Xero bank feed reconciliation

Overview

• This guide will cover how to reconcile BigCommerce transactions with the bank feed in Xero for those using the BigCommerce + Xero integration.
• Allocate your payment deposits recorded in BigCommerce to the clearing accounts.

Reconcile BigCommerce clearing accounts by allocating payment deposits (No Stripe bank feed in Xero)

For each payment type, you need to take note of what clearing account it has been mapped to. Then, you’ll need to go through the following steps for each payment type to complete the bank reconciliation process. To view the clearing accounts mapped to the payment types, follow this guide on accounts mapping.

For example, a Stripe payment has been recorded in BigCommerce. The integration syncs the payment to the clearing account assigned to the Stripe payment type. When Stripe transfers the payout to your bank account, you must allocate this to the same clearing account, e.g. BigCommerce Stripe Clearing. Follow these steps for the Stripe payment type:

1. Log in to Xero.

2. In the Accounting menu, select Bank Accounts.

3. Select the bank account where Stripe payouts are deposited, and click Reconcile.

4. Find the Stripe payout related to BigCommerce. Next to it, under the Create tab, input a contact (e.g. BigCommerce Stripe Payout) and select the BigCommerce Stripe Clearing account or the mapped clearing account if you changed the default mapping.

5. Ensure the Tax Type is 0% (e.g. BAS Excluded / Tax Exempt) since the tax amounts have already been recorded into the synced invoice.

6. You can download a Stripe report to refer to the Stripe fees paid.

7. In Xero, you can create a bill or manual journal to record the fees. This should be allocated to an expense account and paid or credited to the BigCommerce Stripe Clearing.

Reconcile BigCommerce clearing accounts by allocating payment deposits (With Stripe bank feed in Xero)

Reconciling the Stripe bank feed

Before you start, ensure that the Stripe bank feed has been connected.

We recommend creating bank rules so you can easily reconcile through cash coding. Below are the recommended bank rules:

1. Each BigCommerce order payment will appear as an individual transaction in the bank feed. So, for sales and refund transactions, you need to allocate these to the BigCommerce Stripe Clearing.

2. Allocate the Stripe fees to an expense account (e.g. Stripe Fees).

3. Select the bank account where Stripe payouts are deposited, and click Reconcile.

4. For payouts or payouts withdraw (where there are more refunds than sales), create a bank transfer to the bank account linked to Stripe.

After setting up the bank rules, you can reconcile the Stripe transactions through Cash Coding.

1. In the Accounting menu, select Bank Accounts.

2. Select the Stripe bank account and click Cash Coding.

3. The bank rules will automatically apply so you just need to tick the box of the transactions you wish to reconcile.

4. Click Save & Reconcile.

Reconciling the business bank account

In the business bank account (linked to Stripe), you will find the Stripe payout deposits.

1. In the Accounting menu, select Bank Accounts.

2. Select the bank account where Stripe payouts are deposited, and click Reconcile.

3. The bank transfer transaction made in the Stripe bank feed will automatically match the Stripe payout deposit.

4. Click OK to match.

What is a clearing account?

Clearing accounts are temporary accounts that hold a record of payment received as per POS/eCommerce app before the money is deposited by the payment service into your bank account. This means your sales and payments data are always up-to-date. Allocating the actual deposits to the clearing accounts will offset the amount on the clearing account that has the temporary balance and post it to a permanent account.