I'm working with a business where the previous accountants didn't maintain the accounts package (Xero) - as such it has resulted in over 3,000 unreconciled bank items, spanning different accounting periods. They filed the previous years accounts (first year) by getting the business owner to categorise each item in a bank statement and then they did something to get a set of statements, however I don't think they are going to be accurate.
I am now going through the bank rec (since the dawn of time), I can categorise the outgoings fine enough by going through with the business owner to categorise them all. The issue I have is there is an app the business uses for it's invoices and customer management which automatically records invoices and payments in Xero - the problem is there will be several invoices which match to a single bank transfer. I don't really have a clear way of seeing which invoices match to which payments. There is around 1,500 bank items which need matching to a massive amount of invoices/ payments and really is pretty much un-doable. It's easy to tell that it is revenue but this app pulls the invoice and payments through into Xero so it already accounts for them but then matching it to the cash is very difficult.
Any advise appreciated!!