One of our absolute favorite features in Xero is the bank rules. Please see our previous post about bank rules too with the basics on how they work. But today, we wanted to share with you an improvement to bank rules. It may be a small update, but the benefits are big!
What Are Bank Rules?
Bank Rules allows you list certain criteria so that Xero will create transactions based on how the information that comes through on your bank feed. When you have bank rules set up, Xero uses those rules and applies them to the transactions in your bank feed so that all you need to do to reconcile is click “OK”.
An example, perhaps you shop at Staples often for your business needs. You might set up a rule in Xero so that when a bank feed includes the word “Staples”, the bank rule will automatically create a transaction with the Contact: Staples and the Account: Office Supplies.
Sometimes though, you may not want the bank rule to create a transaction. If this is ever the case, you just need to click on “Don’t apply rule” and you can enter the details for the transaction under the “Create” Tab.
How to Create a Bank Rule
To create a bank rule, go to Bank Accounts> Bank Rules> Create Rule
You have the option to create a Spend Money or a Receive Money rule.
At this point, it is time to start creating your rule.
The new update to Bank Rules is that now you can choose the option of “any text field” in the first field. This may not seem like a big thing, but it actually is a very big deal! By choosing this option, you can make sure your rule will apply in different situations. We have noticed in the past that sometimes bank rules have been set up and have been working but suddenly they stop working. Often this is because of some sort of change in how the bank feeds come over. Using the new options of “Any text field” means that the bank rule would continue to work even if there are changes to how the bank feed comes over.
Another important thing to note is that it in many cases it is helpful to choose “contains” in the second field and possibly change the wording in the third field so that the bank rule will work in the future.
Finish up making your rule
Now’s the time to fill in all the fields to complete the set up of your rule. Make sure you set a contact (#2) and an account (#4). Sometimes you may want to choose for the rule to only be for a specific bank account with #6, but we have found that most times we choose “all bank accounts” (#6).
Don’t forget to name your rule (#7).
Congratulations! You just made your first bank rule! We are sure that you will love using bank rules in Xero.