Xero JAX auto-reconcile: when to turn it on, and how to keep an eye on it

What it actually does

Reconciling means matching each line from your bank to the right thing in Xero (an invoice, a bill, or a "spent on fuel" entry) so your books match the bank.

With auto-reconcile on, JAX looks at new bank lines as they arrive and reconciles the ones it's highly confident about. The rest are left for you. It only looks at future bank lines, not your old unreconciled ones. You turn it on per bank account.

Each line JAX reconciles gets a label showing the method it used:

• Rule: one of your bank rules was applied.
• Match: it matched an existing Xero record, such as an invoice or bill.
• Memory: it copied how you reconciled similar lines before.
• Prediction: it went by how other Xero users reconciled similar lines.
• Lines you reconcile yourself are labelled Manual.

Tip: "Prediction" means JAX is going by other businesses, not yours. Those are the ones to check hardest. Sources: Xero NZ (opens in a new tab), Xero Central (opens in a new tab), checked 19 Oct 2026.

Which plan has it?

We don't list prices. Check Xero's NZ plans page (opens in a new tab) for current pricing.

• NZ and Australia: Xero's NZ (opens in a new tab) and AU (opens in a new tab) pages say it's on the Grow, Comprehensive and Ultimate plans. On Ignite it's a paid add-on called AI Automate.
• Xero Central uses global plan names ("Standard plans and above", and Lite or Starter with the AI Automate add-on). Use the NZ and AU names when you check your own plan.
• If you remove the AI Automate add-on later, Xero says you can still see what JAX reconciled, but it stops reconciling automatically.
• Not sure it's switched on for your organisation yet? Look for the Auto-reconcile button on the bank account's Reconcile tab, or check your plan.
• Last checked 19 Oct 2026.

When to turn it on (good signs)

This is our advice, not Xero's.

• Your bank feed is tidy. One business account, no personal spending mixed in, and you reconcile regularly.
• You already use bank rules for regular stuff (fuel card, phone, software, supplier direct debits), so JAX has your rules to follow.
• Your invoices and bills are already in Xero before the money moves, so it can match them.
• Your GST is simple: mostly standard-rated work and supplies.
• Your accountant is OK with it (questions below).
• Start small: turn it on for one clean account first. Don't use "Save for all accounts" until you've checked a few weeks of its work.
• Try it in the Xero demo company first. Xero says auto bank reconciliation is in the demo company so you can test how it works.

When NOT to turn it on (or to wait)

General guidance, not tax advice. Check with your accountant.

• Messy bank feeds: personal and business spending on the same card, lots of cash withdrawals, transfers between your own accounts, or a feed that's been broken or re-imported. JAX has less to go on.
• GST-sensitive transactions, where the right tax rate depends on your situation: mixed business and private use (ute, phone, home office), entertainment, overseas software subscriptions, insurance, loan repayments, tools or vehicles, wages and PAYE, and payments to IRD or the ATO. Check with your accountant how these should be coded, and consider bank rules for them instead of letting JAX decide.
• Right before your accountant's review, a GST return (NZ), a BAS (AU) or year-end. Don't switch it on halfway through a period your accountant is about to check. Agree the start date with them.
• When invoices get paid in bits, or one payment covers several invoices. Check these matches especially carefully, so a customer who's paid doesn't get a reminder.
• If nobody will check it each week.

How to turn it on, step by step

From Xero's guide, checked 19 Oct 2026.

1. In the Accounting menu, select Bank accounts.
2. Click the name of the bank account (start with your cleanest one).
3. Select the Reconcile tab.
4. Click Auto-reconcile.
5. Under Auto-reconcile settings, tick Turn on Auto Bank Reconciliation.
6. Click Save. Leave "Save for all accounts" alone for now.

Tip: Only one person needs to turn it on, and they must be the subscriber or have the administrator role. The settings panel shows who last changed the setting and when, which is handy if you share Xero with a bookkeeper. Write down the date you turned it on, so your accountant knows where JAX started.

How to check what it did (weekly, 15 minutes)

1. Accounting > Bank accounts, then click Reconcile [number] items for the account. If there's nothing to reconcile, click the account name, then the Reconcile tab.
2. Click Review reconciled.
3. Click Filter and pick the last week, and/or a method. Check "Prediction" first, then "Memory".
4. Hover over the label (Rule, Match, Memory, Prediction) to see JAX's reasoning.
5. Check the account code, the tax rate (GST), and whether the right receipt or invoice is attached. You can view, add or remove files from the files column.

⚠️ Weekly checklist: any Prediction lines checked one by one? GST rate right on anything fiddly? Any customer payment matched to the wrong invoice (look at your overdue list)? Anything personal coded as business? We couldn't find a "mark as reviewed" button in Xero's guide, so write down the date range you checked ("checked to 19 Oct").

How to fix a mistake

From Xero's guide. When you correct JAX, Xero says it learns from the correction.

• Wrong account code or tax rate: on the Reconciled transactions screen, click the account code or tax rate and choose the right one.
• Wrong transaction created (for example a spend money entry that shouldn't exist): tick it, click Remove & Redo, then Delete transaction. The bank line goes back to unreconciled so you can do it properly.
• Matched the wrong invoice or bill: use Remove & Redo. The invoice or bill goes back to awaiting payment. Then check no reminder went out to that customer.
• Right payment, wrong bank line: click the transaction, click the payment, then Options > Unreconcile.
• Padlock icon: the transaction is in a locked or closed period, so you can't remove and redo it until the lock is removed. Talk to your accountant before touching a lock date.

⚠️ GST gotcha: if you change the account code, Xero switches the tax rate to that account's default tax rate (and adjusts the unit price so the total stays the same). Check the tax rate again every time you change an account code.

How to switch it off

1. Accounting > Bank accounts, then click the bank account.
2. Reconcile tab, then Auto-reconcile.
3. Under Auto-reconcile settings, untick Turn on Auto Bank Reconciliation.
4. Click Save (or "Save for all accounts" to turn it off everywhere).

Tip: Switching it off stops new automatic reconciling. For lines JAX already reconciled, open Review reconciled and fix anything wrong using the steps above; if you're not sure what to keep, check with your accountant. Switching it off isn't failing. It's a sensible call for a messy account.

Talk to your accountant first

Send your accountant these 6 questions before you switch it on.

Want AI to turn this into a polite email? Paste only the questions, not bank details. See Is ChatGPT safe for business data?.

Copy this prompt and fill in the [square brackets]:

Hi [name], Xero has an AI auto-reconcile feature (JAX). I'm thinking of turning it on for [account]. Before I do:
1. Are you happy for me to turn it on, and from what date?
2. Which transactions should I set bank rules for instead, especially anything with tricky GST?
3. Should I wait until after my next GST return / BAS / year-end review?
4. Do you want me to send you a list each month of what JAX reconciled?
5. Will you be setting a lock date after your review?
6. Will checking JAX's work change what you charge me?

Tip: Want a hand setting up bank rules and checking it with you? See DIY vs done-for-you or get set up. New to AI in your business? Take the free 6-question quiz.

What is Xero JAX auto-reconcile?

It's Xero's automatic bank reconciliation, powered by its AI, JAX. When new bank lines come in, JAX reconciles the ones it's highly confident about and leaves the rest for you. Xero still calls JAX beta. (Checked 19 Oct 2026.)

Which Xero plan do I need?

In NZ and Australia, Xero says it's included on Grow, Comprehensive and Ultimate. On Ignite you can add it with the paid AI Automate add-on. Check Xero's site for prices.

Will it reconcile my old transactions?

No. Xero says it only looks at bank lines that come in after you turn it on.

How do I check what JAX did?

Go to the bank account, then Reconcile, then Review reconciled. Filter by date or method and hover over each label to see why it matched. Check "Prediction" ones first.

How do I turn it off?

Go to Bank accounts, click the account, then the Reconcile tab, then Auto-reconcile. Untick "Turn on Auto Bank Reconciliation" and click Save. You can do this per account at any time.

Is it safe for GST?

It can get GST wrong on fiddly items, like mixed private use, entertainment, overseas subscriptions or asset purchases. Set bank rules for those, check tax rates weekly, and check with your accountant before turning it on. This isn't tax advice.