In Xero if you would like to be able to reconcile an account it needs to be a bank account, you don’t have to have linked bank feeds if not required. As such it is an operational decision whether it is a bank account or an asset/liability account.
It is very important that you do not change the bank / credit card accounts in the source file but leave as is. You will be able to change the bank account types as part of the conversion process.
We recommend that any accounts that require bank feeds or reconciliation be set up as bank accounts or credit cards and all other accounts be changed to an asset or liability account. This is because you cannot create manual journals to bank accounts in Xero.
The benefit of changing the account types to an asset or liability is that you are still able to make payments to these accounts and also do manual journals.
NOTE: If you change a bank account or credit card to an asset or liability this will result in a loss of link between payments and contacts for this account.
If you are uncertain of requirements then keep the bank accounts as bank accounts and change later in Xero if required – more information.
Bank account numbers do not come across as part of our conversion, you will need to add them in Xero.