How do I create a Suspense Account in Xero?

Xero allows users to create a "suspense" account for transactions to reside until a decision is made about how they should be recorded.

To create a Suspense Account in Xero, you will need to start by logging in to your Xero account. 

Navigate to Accounting and then click on Chart of Accounts

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If you do not already have a Suspense Account or wish to create a new one, you will click on Add Account

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On the Add New Account screen, you will create an account with the following settings:

    • Account Type: Other Income
    • Code: choose a unique code (limited to 10 characters)
    • Name: give it a name that indicates that it is a Suspense Account 
    • Check box next to Enable payments to this account

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When complete, click Save.