AI-Powered Bank Reconciliation with n8n and Xero

Bookkeeping & Accounting Automation

Intermediate3-4 hoursLow

n8nClaude (Anthropic API)Plaid MCPXero MCP

Quick Answer

Use n8n to pull bank transactions from Plaid MCP and unreconciled items from Xero MCP. Claude matches them, flags discrepancies, and generates a reconciliation report. Human review focuses only on flagged exceptions.

The Problem This Solves

Manual bank reconciliation requires accountants to compare hundreds of transactions line by line each month. This workflow reduces that to reviewing a flagged exceptions list.

About This Workflow

Bank reconciliation is one of the most time-consuming monthly accounting tasks. This workflow connects your bank account through Plaid MCP, retrieves unreconciled transactions from Xero, uses Claude to match transactions and identify discrepancies, and outputs a structured reconciliation report. Unmatched items are flagged automatically with suggested resolutions, reducing the manual investigation burden on your accounting team.

Tools Required

n8nAutomationView on Finatune Visit Website

Claude (Anthropic API)AI EngineView on Finatune Visit Website

Plaid MCPData SourceView on Finatune Visit Website

Xero MCPData SourceView on Finatune Visit Website

Step-by-Step Blueprint

Schedule n8n workflow monthly

n8n

Create an n8n workflow with a Schedule trigger set to run on the last business day of each month or on-demand via webhook.

Fetch bank transactions via Plaid MCP

Plaid MCP

Add an n8n HTTP node calling the Plaid MCP server to retrieve all bank transactions for the reconciliation period. Store transactions as a JSON array.

Fetch Xero unreconciled items

Xero MCP

Add an n8n HTTP node calling the Xero MCP server to retrieve all unreconciled bank statement lines for the same period.

Send both datasets to Claude for matching

Claude

Add an n8n Claude node. Send both transaction lists and instruct Claude to match bank transactions to Xero records by amount, date, and description, returning matched pairs and unmatched items as structured JSON.

Use this prompt →

Generate reconciliation report

n8n

Add an n8n Code node to format Claude's output into a structured reconciliation report showing matched items, unmatched bank transactions, and unmatched Xero items with suggested resolutions.

Email report to accounting team

n8n

Add an n8n Email node to send the formatted reconciliation report to your accounting team. Unmatched items are highlighted for manual review.

Cost Estimate

$20-60/month

n8n Cloud Pro $50/month or self-hosted free. Claude API costs minimal for monthly reconciliation runs. Plaid production pricing usage-based. Xero subscription required separately.