The basic steps to add a bank account
To add a bank account in Xero, go to the Settings menu, select Bank accounts, then click Add account. Xero will ask you to choose between connecting your account directly (which links to your actual bank) or entering the details manually. If your bank is supported, the direct connection is faster and more accurate — Xero will pull in your real transactions automatically. If your bank isn't on the list, you'll enter your account number, routing number, and other details by hand.
The whole process takes about five to ten minutes if you're connecting directly, or a few minutes longer if you're entering information manually. You'll need your bank login details handy for the direct connection method, though you're not storing your password in Xero — you're just authorizing the connection through your bank's own security system.
Key Takeaways
- Direct bank connections are faster and automatically import your real transactions, but only work if your bank is on Xero's supported list.
- Manual entry requires your account number and routing number, and you'll need to upload transactions yourself or enter them by hand.
- Xero asks you to set a start date for the account — transactions before that date won't show up, so choose the date you want to begin tracking.
- You can add multiple bank accounts to the same Xero file, and each one connects independently.
Connecting directly to your bank
If your bank appears on Xero's supported list, the direct connection method is the way to go. After you click Add account and choose Connect online, Xero will show you a list of banks. Search for yours by name or scroll through the list. When you find it, click it and you'll be taken to your bank's login page — not Xero's page that looks like your bank, but your actual bank's website.
Log in with your regular banking username and password. Your bank will ask you to confirm that you want to let Xero see your account information. Once you approve it, you're sent back to Xero and the connection is complete. Your bank login details stay with your bank — Xero never sees them. From that point on, Xero will pull in your transactions automatically, usually within a day of when they post at your bank.
Entering bank details manually
If your bank isn't on Xero's supported list, or if you prefer not to use the direct connection, you can enter your account information manually. After clicking Add account, choose Enter account details. Xero will ask for your account name (the name you want to see in Xero), your account number, and your routing number. You'll also choose the account type — checking, savings, or money market, for example.
Once you've entered these details, you'll need to bring your transactions into Xero yourself. You can read a CSV file from your bank's website and upload it to Xero, or you can enter transactions one at a time as they happen. The CSV upload is faster if you have many transactions to catch up on. Your bank's website usually has an option to read transactions in a format Xero can read — look for "read as CSV" or "export transactions."
Choosing your account start date
When you add an account, Xero asks you to set a start date. This is the date from which Xero will begin tracking transactions in that account. Any transactions that happened before this date won't appear in Xero, even if they're still visible at your bank. Most people set the start date to today or to the first day of the current month, depending on when they want their Xero records to begin.
If you're setting up Xero for a business that's been running for months or years, you might set the start date to the beginning of the current financial year, or to whenever you want your Xero records to start. You can't change the start date after you've created the account, so think about this before you finish adding it. If you realize later that you need transactions from before your start date, you'll need to delete the account and add it again with an earlier date.
What happens after you connect
Once your bank account is connected, Xero begins pulling in transactions. With a direct connection, this usually happens automatically — new transactions show up within a day of posting at your bank. With manual entry, you control when transactions appear by uploading files or entering them yourself.
When transactions arrive in Xero, they appear in your Bank transactions section marked as Awaiting categorization. This means Xero has seen the money move, but you haven't yet told it what the transaction was for — whether it was income, an expense, a transfer between accounts, or something else. You'll categorize each transaction by assigning it to an account or matching it to an invoice or bill. Once you've categorized a transaction, it moves out of the awaiting section and into your permanent records.
Adding multiple bank accounts
You can add as many bank accounts as you need to the same Xero file. Each account connects independently, so you might have your main business checking account connected directly, a savings account connected manually, and a credit card account entered by hand. Go through the Add account process for each one. Xero keeps them separate in your records, so transactions from each account stay organized by which account they came from.
This is useful if you have separate accounts for different purposes — one for payroll, one for operating expenses, one for savings — or if you're managing accounts for multiple businesses. Just remember that each account needs its own start date and its own connection method, so plan ahead if you're adding several at once.
Troubleshooting common problems
If your bank isn't appearing in Xero's supported list, check that you're spelling the name correctly and that you're searching for the main bank name, not a branch name. Some banks operate under different names in different regions. If you still can't find it, the manual entry method will work — you'll just need to manage transactions yourself. You can also contact your bank to ask if they have an API or data export option that Xero might support in the future.
If a direct connection stops working — for example, if Xero stops pulling in new transactions — it usually means your bank has updated its security settings or your login credentials have changed. Go back to Settings > Bank accounts, find the account, and look for a Reconnect or Re-authorize button. You'll log in to your bank again to re-approve the connection. If that doesn't work, delete the account and add it again from scratch.
Frequently Asked Questions
Do I have to use direct connection, or can I always enter details manually?
You can always choose manual entry, even if your bank is on the supported list. Direct connection is faster and more accurate because it pulls real transactions automatically, but manual entry gives you more control and works with any bank. Choose whichever fits your workflow.
What if I add an account with the wrong start date?
You'll need to delete the account and add it again with the correct start date. Xero doesn't let you change the start date after creation. Before you delete, make sure you've categorized any transactions you want to keep, because deleting the account removes those records from Xero.
Can I connect a credit card or just a bank account?
You can connect credit cards, savings accounts, money market accounts, and other account types — not just checking accounts. The process is the same: search for your card issuer in the supported list, or enter the details manually if it's not there.
Will Xero see my password if I use direct connection?
No. When you use direct connection, you log in to your bank's actual website, not to a Xero page. Your bank handles the authentication, and Xero only receives permission to view your account. Your password never goes to Xero.
How often does Xero pull in new transactions?
With direct connection, Xero usually pulls transactions within a day of when they post at your bank. The exact timing depends on your bank and Xero's sync schedule. With manual entry, transactions appear only when you upload them or enter them yourself.