How to Automate BPAY Reconciliation In Xero for Customer Payments
- Parakeet
- Mar 24
- 2 min read
24 March 2025
Automate BPAY Reconciliation in Xero
Did you know you can now automatically reconcile BPAY payments in Xero?
You can manually match BPAY payments to invoices in Xero, however this is time-consuming and error-prone.
With our BPAY Reconciliation service, payments can now be automatically matched to the correct invoices, marked as paid, and reconciled in Xero—saving you hours of manual work.
💡 Did you know with the rise in fraudulent debits from bank account numbers provided on invoices, BPAY is becoming an increasingly popular and secure payment option.
How BPAY Reconciliation Works in Xero
When a BPAY payment is made, our automation:
Extracts payment data from your BPAY provider.
Matches payments to outstanding Xero invoices using CRNs.
Marks invoices as paid.
Reconciles payments to your clearing account.
Payment data uploaded into Xero for easy audit and governance.
What About Exceptions?
Not all payments are straightforward. We help you stay in control by flagging:
Reversals – If a BPAY payment is reversed, you’ll be notified.
Overpayments & Part-Payments – Easily review and manage exceptions manually within Xero.
This ensures your financial records remain accurate and up to date while making it easy for you to identify and manage the exceptions.
Setting Up BPAY Reconciliation in Xero
To get started, follow these steps:
Connect Parakeet to Your BPAY Provider - Parakeet works with your BPAY provider to receive daily payment files, ensuring all transactions are captured.
Enable Auto-Reconciliation in Xero - We configure Xero to match incoming BPAY payments with the correct invoices using the customer’s unique CRN.
Start Automating Your BPAY Reconciliation - Once set up, Parakeet will handle the entire reconciliation process—so you can focus on growing your business.
Who Benefits from BPAY Reconciliation?
This solution is ideal for businesses that:
Accept high volumes of BPAY payments.
Want to eliminate manual reconciliation and reduce errors.
Need a scalable solution for accurate and efficient payment reconciliation.
Why Use BPAY Reconciliation?
Security – Reduce the risk of human error and incorrect payment allocation.
Efficiency – Free up your finance team’s time with automation.
Scalability – Handle large volume of payments effortlessly.
Questions?
You can learn more about it here.
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About Parakeet:
Parakeet is a certified financial services app in the Xero app store. See Parakeet's Xero App Store listing here.
Learn about Parakeet's automated BPAY Reconciliation (AR) here
For more information, contact: media@helloparakeet.com
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