Follow these steps to review your 'Cash on Hand' account transactions before reconciliation:

1. Navigate to Accounting > Reports > Select Account transactions. (If you have starred this report, it will appear under your starred reports for quick access).
   
2. From the report options, select the relevant Cash on Hand account(s).
3. Enter the desired transaction date in the Date range field.
4. Click Update.

 

The report will then display the expected deposit amount for each 'Cash on Hand' account, as shown in the example below, where a total of $9,254.95 for the cash on hand account is displayed, which should be offset by a corresponding deposit. 

Once you have verified the amounts, proceed to reconcile the deposit in your Xero bank feed: 

1. Locate the Deposit in Your Bank Feed: 
   1. Go to your bank feed in Xero. 
   2. Find the cash deposit entry that corresponds to the amount you verified in the transaction report. 
2. Create a 'Receive Money' Transaction: 
   1. On the left-hand side of the screen, under the 'Create' tab, enter the following details: 
      • Who: Enter "Cash Deposits" or an alternative preferred contact for cash deposits. (If the contact does not already exist, a new contact will be created.) 
      • What: Select the related 'Cash on Hand' account. For multiple stores, ensure you select the correct 'Cash on Hand' account for the specific store associated with the deposit. 
      • Why: Enter a clear description (e.g., "Daily takings 01/08 to 31/08"). This helps explain the purpose of the deposit. 
   2. Click 'OK' to reconcile the transaction.

What is the 'Cash on Hand [store location]' account in Xero? 

This is a specific account in Xero where all cash sales processed in-store via LightSpeed, and cash payments made in-store for Vital invoices, are initially recorded. It acts as a holding account for physical cash before it's deposited into your bank.

Why is it important to review the Account Transaction Report before reconciling?

Reviewing the report helps you verify that the physical cash deposited matches the transactions recorded in Xero. This proactive step allows you to identify and resolve any discrepancies (e.g., counting errors, missed transactions) before reconciliation, preventing future reconciliation issues.

What if I have multiple stores?  

If you operate multiple stores, it's crucial to select the correct "Cash on Hand" account that corresponds to the specific store associated with the cash deposit when creating the 'Receive Money' transaction. This ensures accurate tracking of cash for each location.  

 

What is the significance of the Xero conversion date and go-live date when reconciling cash deposits? 

• Conversion Date: This is always the 1st of the month, the day after your NetSuite 'books balanced date'. A financial snapshot of your NetSuite Trial Balance was taken and copied into Xero, forming your Xero conversion balances (opening balance). 
• Go-Live Date: This is the date you started using the new systems (Vital, LightSpeed & Xero). 

• Cash deposits made between your Xero conversion date and your go-live date need to be matched against transactions that were imported into Xero from NetSuite. Some franchise partners find it helpful to refer to NetSuite End-Of-Day (EOD) reports to identify the specific transactions that correspond to the deposited amount for this historical period.