How to Import Bank Statements into Xero

Xero doesn't directly read PDF bank statements. You need to convert PDFs to CSV, OFX, or QIF format first, or use Xero's bank feed feature to automatically sync transactions.

---

Method 1: Direct Bank Feed (Easiest)

Xero's bank feeds automatically import transactions daily from your bank.

Setting Up Bank Feeds

1. Go to Accounting > Bank Accounts
2. Click Add Bank Account
3. Search for your bank
4. Enter your online banking credentials
5. Select accounts to connect
6. Authorize the connection

Supported Banks

Xero supports 15,000+ financial institutions globally, including:

• US: Chase, Bank of America, Wells Fargo, Citi, Capital One
• UK: Barclays, HSBC, Lloyds, NatWest
• Australia: NAB, Westpac, ANZ, Commonwealth Bank
• Canada: RBC, TD, Scotiabank, BMO

Pros and Cons

✅ Automatic daily updates ✅ No manual file handling ✅ Real-time transaction data

❌ Not all banks supported ❌ Connection can break ❌ No historical statements (only recent 90-180 days)

---

Method 2: Import CSV File

For banks without direct feeds or when you need historical data.

Step 1: Convert PDF to CSV

Convert your PDF bank statement to CSV with these columns:

• Date (required)
• Description or Payee (required)
• Amount or separate Debit/Credit columns (required)
• Reference (optional)

Step 2: Format Your CSV

Xero expects this structure:

Date,Payee,Description,Reference,Debit,Credit
2026-01-15,ACME Corp,Invoice #1234,INV-1234,,2500.00
2026-01-16,Office Supplies Co,Stationery purchase,PO-456,87.50,
2026-01-17,Electricity Provider,Monthly utilities,UTIL-789,145.00,

Important formatting rules:

• Date format: DD/MM/YYYY, MM/DD/YYYY, or YYYY-MM-DD
• Amounts: Use positive numbers
• Debits = money out (expenses)
• Credits = money in (income)
• No currency symbols in amount columns

Step 3: Import into Xero

1. Go to Accounting > Bank Accounts
2. Select the account to import into
3. Click Manage Account > Import a Statement
4. Choose file format: CSV or MT940/ABA
5. Upload your CSV file
6. Map columns:
   • Date → Date column
   • Description → Payee or Description
   • Amount columns → Debit/Credit or Amount
7. Review the preview
8. Click Import

Column Mapping Tips

---

Method 3: Import OFX or QIF File

OFX and QIF are native banking formats—cleanest import option.

What Are OFX/QIF Files?

• OFX (Open Financial Exchange) - Industry standard format
• QIF (Quicken Interchange Format) - Older format, still supported

Both contain structured transaction data that Xero reads directly.

How to Get OFX/QIF Files

1. From your bank - Many banks offer OFX/QIF downloads
2. From converter tools - Convert PDF to OFX format
3. Export from other software - QuickBooks, Quicken export to OFX

Import Process

1. Go to Accounting > Bank Accounts
2. Select your account
3. Click Import a Statement
4. Select OFX or QIF format
5. Upload the file
6. Transactions import automatically—no column mapping needed

---

Method 4: Xero Bank Statement API

For developers building automation.

API Overview

Xero's Bank Feeds API allows programmatic statement uploads.

Use cases:

• Custom bank integrations
• Automated statement processing workflows
• High-volume bookkeeping operations

Requirements:

• Xero developer account
• OAuth 2.0 authentication
• Bank feeds enabled for your organization

---

After Import: Reconciliation Workflow

Imported transactions appear in the Reconcile tab.

Reconciliation Steps

1. Go to Accounting > Bank Accounts
2. Click Reconcile on the imported account
3. For each transaction:
   • Match to existing invoices or bills
   • Create new transactions (invoices, bills, payments)
   • Transfer between accounts
   • Mark as reconciled

Auto-Matching

Xero suggests matches based on:

• Amount and date proximity
• Payee name matching
• Previous transaction patterns

Review suggested matches—they're not always perfect.

Bank Rules

Create rules to auto-categorize transactions:

1. Go to Accounting > Advanced > Bank Rules
2. Click Create New Rule
3. Set conditions:
   • If description contains "AMAZON" → Office Supplies
   • If amount equals $99 → Software Subscription
   • If payee matches "Landlord" → Rent Expense
4. Xero applies rules automatically on import

---

Importing Historical Statements

For old statements not available through bank feeds.

Process

1. Gather PDF statements from bank archives
2. Convert each to CSV or OFX format
3. Import in chronological order (oldest first)
4. Reconcile each period before importing the next
5. Verify opening/closing balances match between periods

Tip: For multi-page statements, see how to handle multi-page bank statements.

---

Troubleshooting Common Issues

"Date format not recognized"

Solution: Use DD/MM/YYYY (Xero default), MM/DD/YYYY, or YYYY-MM-DD consistently.

"Duplicate transactions detected"

Solution: Xero checks for duplicates based on date + amount. If re-importing, duplicates are automatically skipped.

"Unable to match amounts"

Solution:

• Check decimal separators (period vs comma)
• Remove currency symbols ($, £, €)
• Ensure debit/credit signs are correct

"Import fails with large files"

Solution: Split statements into smaller files (500-1000 transactions per file).

---

Best Practices

Regular Reconciliation

• Import weekly or bi-weekly (don't let it pile up)
• Reconcile immediately after import
• Check bank balance matches Xero balance

Consistent Categorization

• Use bank rules for recurring transactions
• Create expense categories before importing
• Tag transactions for better reporting

Audit Trail

• Keep original PDFs for compliance—see best practices for bank statement data security
• Reconcile monthly at minimum
• Review unmatched transactions regularly

Automation

Consider automating monthly bank statement processing for efficiency.

---

Xero vs QuickBooks for Statement Import

Both are excellent—choice depends on your region and workflow preferences.

---

Summary

Importing bank statements into Xero requires converting PDFs to CSV, OFX, or QIF format unless you use direct bank feeds. CSV import offers maximum control with column mapping, while OFX/QIF provides the cleanest automated import. Always reconcile immediately after import and use bank rules to automate categorization for recurring transactions.

---

Related Guides

Getting Started

• What is a bank statement?
• Bank statement formats explained (PDF, CSV, OFX, QBO)
• Bank statement converter: PDF to Excel

Step-by-Step Conversion

• How to convert bank statements to Excel step by step
• Convert PDF bank statements to CSV online
• How to convert scanned bank statements to CSV

Reconciliation & Analysis

• How to reconcile bank statements in Excel
• How bookkeepers automate bank reconciliation
• How to categorize bank transactions automatically

Software Integration

• How to import bank statements into QuickBooks

For Professionals

• How accountants process multiple bank statements
• Bank statement converter for small business owners
• How to automate monthly bank statement processing