Now that everything is connected and set up as our set up guide recommends, you can start Invoicing and documenting your Payments in Cliniko! As the Invoice and Payments are created, we will push across the information to the relevant areas in Xero. As the information starts to populate, you will want to make sure that you are receiving the right money in your Bank Account. This is where reconciling occurs!
To start the Reconciliation process, you will need a couple of tabs open. Here's what you'll need:
The Clearing Account report
- In Xero, head to Reports->Cash Summary
- Find the relevant Clearing Account on the Summary
- Click on the monetary total for the month in question
- Set your date range, and click "Update"
That will provide you with the total amount of Payments pushed across from Cliniko for the date range selected.
The Reconciliation page
- In Xero, head to Accounts->Bank Accounts
- Click on the Bank Account required
- Click on the Reconciliation tab
That will bring you to the actual reconciliation page in Xero. This is where you will be reviewing your deposits.
Now, to Reconcile
- Find the Deposit you wish to reconcile
- Confirm the deposit is the correct amount that you were expecting, by referring to your Clearing Account report
- If that looks in order, click on the "Create" tab
- Enter a name for the transaction (e.g. EFTPOS deposit - 31/02/2016)
- Select the "Acct" in question (in this case, the EFTPOS Clearing Account)
- Then hit "OK".
You have just reconciled your first deposit in Xero! Now to explain what you just did!
When Cliniko pushes Payments into your Clearing Account, we are creating 'debits'. This means that your Clearing Account is now increasing in value. The aim of reconciling to make sure that the money that you are receiving into your bank account is 'zeroing out' the debits in that Clearing Account. By using the "create" function on the reconciliation page, you are now creating a 'credit' in that Clearing Account. Thus, you are wiping off the debt that you have accumulated.
Essentially, Cliniko is saying "these are expected payments, clear this ledger when you receive these payments in your bank account" and the reconciling process is just you saying "I now have this money in my bank account, that debt can now be cleared".