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Best Practices Guide for Month-End Reconciliation using Xero

  • Updated

This guide explains how to complete month-end reconciliation when using Float Business Accounts with Xero.

It breaks down:

  • What Float automatically creates in Xero

  • What does not export and must be recorded manually

  • How to use your Float statements to reconcile your clearing account

The goal is to give you a clear, repeatable process for closing your books each month.

 

How Float Connects to Xero

When connected to NetSuite, Float exports approved activity as Spend Money entries. These entries post against a Float Clearing Account, which should be set up as an Asset account.

Your Float Clearing Account represents the balance held in your Float Business Account and is reconciled using your Float statements.

 

What Float Exports Automatically to Xero

Float exports compliant activity from Accounting > Transaction Export. Each export creates specific entry types in Xero.

Card Transactions:

  • Exports to Xero as a Invoices/Credit Notes entry
  • Includes: GL codes, Vendors, Tax Codes, Custom Fields, Split Lines, and Receipt Attachments
  • Accounting Impact:
    • Dr Expense
    • Cr Float Clearing Account
  • These entries reduce your Float clearing account balance in Xero

Bills & Bill Payments:

  • Bills created in Float export automatically to Xero as an unpaid Bill
    • Accounting Impact:
      • Dr Expense
      • Cr Accounts Payable
    • Creating a bill doesn't affect your Float clearing account until the bill is paid
  • When a bill is paid through Float and exported, it creates a Bill Payment entry in Xero
    • Accounting Impact:
      • Dr Accounts Payable
      • Cr Float Clearing Account

Reimbursements:

  • Approved reimbursements are exported to Xero as an Expense
    • Accounting Impact:
      • Dr Expense
      • Cr Reimbursement Payable
    • This records the liability owed to the employee
  • Reimbursements paid through Float exports as a Paid Bill
    • Accounting Impact:
      • Dr Reimbursement Payable
      • Cr Float Clearing Account

 

What Float Doesn't Export to Xero

Some activity never syncs automatically and must be recorded manually using your Float statements. 

The items that don't export automatically are as follows:

  • Funding transfers into Float

  • Withdrawals from Float

  • FX conversions

  • Payments received in Float Business Accounts

  • Reimbursements and bills "marked as paid" in Float and paid outside of Float

 

Using Float Statements for Reconciliation

Your Float Business Account statements include:

  • Opening and closing balances
  • All card transacions
  • All bill and reimbursement payments
  • All non-exported items (i.e., funding transfers, withdrawals, FX conversions, payment received in Float Business Accounts)

Since statements include every balance-changing movement, they should be used to reconcile your Float clearing account.

 

Recommended Month-End Workflow

Step 1: Download Statements

  1. Navigate to Accounts > Statements
  2. Decide between CSV or PDF download > select the month > click Download CSV/PDF

Please note: Statements are available per currency, per account. If you use both CAD & USD, you will need to download these statements separately.

 

Step 2: Review & Export Transactions

  1. Navigate to Accounting > Transaction Export
  2. Review transactions and ensure all required information is included before exporting (i.e., review coding, check for missing receipts, validate tax codes, confirm vendors and custom fields)

For more information on transaction exports, please review this article: Transaction Export Overview

 

Step 3: Record Non-Exported Items

  1. Using your Statements, manually record all movements that don't automatically export:
    • Funding/Top-Ups
    • Withdrawals
    • FX conversions
    • Funds received in Float Business Accounts
    • Reimbursements/Bills "marked as paid" in Float and paid outside of Float

 

Step 4: Reconcile the Float Clearing Account

Match the balance in your accounting system to the closing balance shown on your Float statements.

 

Step 5: Confirm Your Closing Balance

Once all exports and manual adjustments are recorded, your Float clearing account should match the closing balance on your statement exactly. 

If there are discrepancies, check for the following:

  • Missed funding entries
  • A refund or credit not added
  • A transfer only recorded on one side
  • FX movements not reflected

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