Here’s how to do it: 

1. Add Transactions via Bank Feeds: 

  • Log in to Xero and ensure your bank account is connected to the platform. 
  • Go to the “Dashboard” or “Bank Accounts” section. 
  • Xero will automatically import your bank transactions through bank feeds. 

 

2. Add Transactions Manually: 

  • If you don’t have a bank feed set up, you can manually add transactions by going to “Accounting” and selecting “Bank Transactions.” 
  • Click “Add Transaction” to manually enter income or expenses. 
  • Fill in the transaction details, including the amount, date, and description. 

 

3. Use the Chart of Accounts to Categorize Transactions: 

  • For each transaction, assign the correct category by selecting an account from the chart of accounts. 
  • Choose the category that matches the transaction (e.g., Sales, Expenses, Assets, etc.). 
  • Xero will automatically categorize recurring transactions based on previous entries. 

 

4. Approve and Reconcile Transactions: 

  • After categorizing transactions, review them for accuracy. 
  • In the “Reconcile” section, Xero will suggest matches based on your bank feeds or manual entries. 
  • Confirm and approve each transaction to keep your records up to date. 

 

By following these steps, you can easily add and categorize transactions in Xero based on your business needs.