Xero Integration Issue - forced reconcilliation of transactions

xero

#1

I recently implemented the new Xero integration in Tide. After the first run I noticed that Tide had forced Xero to reconcile almost all of the items, many of them incorrectly. It is then impossible in Xero to “unreconcile” these and correct them.

I contacted my accountant, who contacted Xero. The description of the problem from my accountant is:

The system generated transaction appeared to automatically reconcile lines and my client wasn’t able to match these off against invoices as the bank transactions never appeared in the to be reconciled page! We could see these reconciled transactions in the account transactions section so I remove and redo these transactions to unreconcile, thinking they would appear in the bank to be reconciled, however they did not.

As you can see from the account, there are now unreconciled transactions, but we are unable to reconcile these as normal?

Xero’s reply was:

Whilst we are aware Tide have announced that they’ve released an integration with us, at this time any errors are still being dealt with at Tide’s end.

Tide, can you please help? And is anyone else out there having this problem?


#2

Not quite the same issue but related to Categories. If I transfer money from my other business account there is no need to categorise the Transfer to an account code but Tide integration forces you to do that. Otherwise the app says the account cannot be reconciled until categories are matched. Normally I would just create a Match in Xero for transferring from my Santander Account to a savings account for example… I haven’t experienced your issue yet but the absence of a Match function in Tide transactions plus the Category issue makes me think I might unlink my account until these niggles are sorted out. The sync has been very unstable over the past few days which has not been great either. Back to manual imports for me I’m sorry to say.


#3

Hey @Tide, any response to the above? Xero, my accountant and I are all stumped. Whats going on? Its not a good look when Xero tell you to contact Tide and Tide are unresponsive. I’m a big fan, but rather surprised that your Xero integration, even the second time around, is super buggy.


#4

Hi @tommotaylor, sorry for not answering your question sooner!

Currently, Tide will automatically reconcile cleared, categorised transactions where a mapping exists between a Tide and Xero category. Uncategorised or pending transactions will therefore be pushed to Xero in an unreconciled state and then updated when they become categorised / cleared.

At this stage, we recognise that people, especially accountants, don’t work in the way you described above. And, in future versions, we’re looking at giving members the option to choose whether they wish to have their transactions automatically reconciled.

I hope this information helps! Do get in touch, should you require further help :slight_smile:


#5

Hey @Viktoria_at_Tide, thanks for the reply. One of the issues I see with your answer is that the Xero integration actually forces you to map categories when you enable it, which means there is no option but “force” categorising transactions.

The problem is made even more frustrating that once Tide has forced reconciled them (often incorrectly) they cannot be undone properly. In fact I would say that at least 40% of the “forced” reconciliation’s are incorrect.

You also say that some accountants don’t work this way. In fact I would say that no one uses Xero this way. Xero has a very nice interface that gives you a best match for your transaction to be reconciled. As a small business owner it takes a few seconds to confirm these. You can also create rules. For a bank feed integration to come along and bypass this entire system, which is at the core of Xero’s user interface, and instead “force” reconciliation of items ignoring rules set in Xero, makes no sense to me.
A concrete example for you would be that incoming revenue never reconciles against invoices. Once Tide has done its work, its impossible to match them. So the invoicing workflow in Xero is now pointless.

I give this integration 0/5 stars. Its difficult to setup, buggy and then forces incorrect reconciliation that cannot be undone. Whoever designed it cannot have been a Xero user.

I will be trying to undo the mess now and disabling this feature.


#6

I agree with this. I am an advocate of Tide, but worry that the Xero integration is trying to be too clever and in the process falling down badly. I find it frustrating that I cannot reconcile against invoices raised in Xero. Apart from anything else, this means we cannot track “receivables” which can prejudice cashflow and cost unnecessary money. As others have said, the reconciliation process in Xero is very easy to use and capable of much smarter automation than Tide could (or even should) support. As a Xero certified partner and business advisor on a mission to make life easier for SMEs through automation, I do not yet feel able to recommend Tide with Xero. This is a real shame because there is so much that is brilliant about both products and if Tide provided the same functionality as other direct bank feeds, the integration would surely be easier and less risky for Tide to support. There would also be a compelling financial reason to recommend Xero users switch to Tide given that bank feeds with other banks cost £2-6 per month.

Come on guys - how about a bit of User-Centered Design here! You are making your lives harder and in the process putting off customers - where is the sense in that?


#7

Hi @tommotaylor, I’m sorry to hear that this feature isn’t right for you and your business right now.

I’ve taken onboard your feedback and informed the relevant team. Our integration is in its early stages and we really appreciate your feedback as this helps us improve. Improvements will be introduced in the future to ensure this integration benefits the whole community.


#8

Hi @MarkN, thanks for reaching out. It’s a shame for Tide to hear this feedback. But, we’re only going to use your insight to significantly improve this integration, especially for members in a similar position to you.

I’ve informed our Product Development team of your stance on this, and they’ll take on onboard your experience when we make changes in the future.


#9

Viktoria,
Happy to talk to them directly or do a screen share if it helps. As a lecturer in innovation, I have cited Tide as an example of how CRM should be used to shape the product roadmap. I am an advocate and look forward to being able to use Tide and Xero together with clients to take some of the hassles out of life as a small business owner.


#10

Hi @MarkN, this is a fab idea. I’m sure the team would appreciate this. Could you DM me your email?


#11

I agree. It is really frustrating. Apart from the occasional bugginess and instability I like the feel of Tide and it is much easier to use than my Santander Account - but the integration with Xero is now actually creating more work for me. The inability to deal with transfers in from a deposit account is really tedious. And now I see that for foreign currency transactions Tide is posting the initial amount into Xero not the final cleared amount which means I’m going to have to adjust this manually. The link with Xero has broken 7 or 8 times now and has to be recreated each time. Nice idea but poorly implemented. It would have been better if Tide had a bank feed into Xero rather than trying to get full integration.


#12

Hi @JohnJ, thank you for expressing your concern here. I’m very sorry to hear that our integration is creating more work for you - at no point did we intend for this to happen.

Xero currently doesn’t have an API which allows us to automatically reconcile transfers between your Tide accounts. And so, for the time being, we would suggest that members reconcile transaction manually in Xero. While we totally understand the tediousness, this is the current workaround for the time being.

With regards to your experience with foreign currency transactions and linking the Xero account each time, this does sound like an unusual experience. In particular, could you please reach out to our Help team via the in-app chat detailing the time the foreign transaction was made. You should not need to manually correct this. Our team can then look into whether the final amount cleared for you in the end.

I hope this helps :slight_smile:


#13

Any progress with this?
Mark


#14

At this stage no, @MarkN. But I’ll be sure to update you once I learn more.


#15

Hi @Viktoria_at_Tide,

I have the same problem here. When you say “And so, for the time being, we would suggest that members reconcile transaction manually in Xero.” do you mean unlink Xero in the Tide app and import manually the Tide transactions/statements into Xero?

Thanks for your help.
Best,

Hasna


#16

Hi @hkourda, happy to help you here. You don’t need to necessarily unlink your account but rather you would need to reconcile the Tide-to-Tide transaction manually by logging into your Xero account via the Xero platform. Hope this clarifies my point!


#17

Hey @Viktoria_at_Tide, this isn’t actually possible. Like I said earlier, the integration forces the transactions and they can’t be undone. My Xero certified accountants and even Xero couldn’t fix the problem. The only solution available is to disconnect the integration and then delete all the bad transactions from Tide, then start again by importing the CSV.

This thin veneer of effort on your behalf to understand this issue really doesn’t look good. I was a fan of Tide, but I think you’re going to need to fix this integration before the financial new year otherwise you’ll be losing a number of customers.


#18

Hi @tommotaylor, sorry to hear this isn’t working out for you. We have been listening to your feedback but Xero’s bankfeed API has not been released to us yet. As a result, we can’t integrate in the way other banks have.

We’ve chosen to integrate this way and have been very open about the limitations. This works for a majority of our members but appreciate that it’s not for everyone. We still plan to integrate in to the bankfeeds API when it’s available to us. But it’s worth noting that we’re waiting on Xero for this to happen.

We’ll update you, and others, once Xero open their bankfeeds to us.


#19

Hi Viktoria.

Any news on updating the Xero manual reconcile yet?

Is there a rough timeline for the changes you mention?
I like Tide but the lack of proper Xero reconciliation feature is causing me a lot of extra work.

Thanks

Tom


#20

Hi @MrWint1981, not update as of yet I’m afraid. We’re still waiting for Xero to open their bankfeed API to us. Totally understand how this is causing you a lot of work - I apologise that this is the case for you (and other members).