Inter-entity loans
Make inter-entity loans agree on both sides
See both Xero ledgers together, match the entries and open the source transactions. AccountKit posts a journal for the remaining difference.
Included in the base subscription
What goes wrong today
Two files, two different balances
The loan to the trading company and the loan from the holding company sit in separate Xero files, and at year end they’re out by an amount nobody can explain.
Ticked off in Excel, pair by pair
Matching means exporting both ledgers, lining them up in a spreadsheet and ticking entries off one entity pair at a time.
One-sided entries roll forward
A bill paid on another entity’s behalf is recorded in one file only, and the difference carries into next year’s accounts.
Two ledgers, one balance
Watch two ledgers pair up and the difference post
Matching entries pair up across the two entities. What’s left is the balance of unreconciled transactions, and that becomes the journal.
Inter-entity loansInteractive preview · sample dataSwipe across to compare both ledgers.
Harbour Holdings Pty Ltd
Loan to Harbour Trading
AccountKit demo client
- Loan balance
- $40,650.00
- Matched total
- $40,650.00
| Date | Description | Debit | Credit | Match status |
|---|---|---|---|---|
| 03 Jul | Advance to Harbour TradingLoan to Harbour Trading | $25,000.00 | — | ✓○ |
| 14 Aug | Advance for stock purchaseLoan to Harbour Trading | $12,500.00 | — | ✓○ |
| 30 Sep | Management fee rechargeLoan to Harbour Trading | $4,400.00 | — | ✓○ |
| 17 Oct | Repayment from Harbour TradingLoan to Harbour Trading | — | $8,000.00 | ✓○ |
| 29 Nov | Paid Trading’s equipment repairsLoan to Harbour Trading | $6,750.00 | — | ✓○ |
No transactions match this filter.
Harbour Trading Pty Ltd
Loan from Harbour Holdings
AccountKit demo client- Loan balance
- $40,650.00
- Matched total
- $40,650.00
| Date | Description | Debit | Credit | Match status |
|---|---|---|---|---|
| 03 Jul | Loan from Harbour HoldingsLoan from Harbour Holdings | — | $25,000.00 | ✓○ |
| 15 Aug | Loan from Harbour HoldingsLoan from Harbour Holdings | — | $12,500.00 | ✓○ |
| 30 Sep | Management fee from HoldingsLoan from Harbour Holdings | — | $4,400.00 | ✓○ |
| 18 Oct | Repayment to Harbour HoldingsLoan from Harbour Holdings | $8,000.00 | — | ✓○ |
| 30 Jun | Journal: repairs and maintenanceLoan from Harbour Holdings | — | $6,750.00 | ✓○ |
One entry is missing from this ledger.
No transactions match this filter.
Journal posted to Xero. Both loans show $40,650.00
Interactive demonstration with sample data, based on the AccountKit interface.
Who it’s for
Built for practices with multi-entity client groups
Practices looking after client groups where two or more entities lend to each other: a holding company, a trading company, a family or unit trust. The more entities in the group, the more pairs there are to reconcile.
How often it comes round
At every year end, and every month or quarter when you prepare management reports for the group.
- Monthly
- Match new entries while they’re easy to explain.
- Quarterly
- Balances agree before management reports go out.
- At year end
- The unreconciled balance is journalled and the loans agree.
Posts to Xero
The balancing journal posts straight to Xero
The unreconciled balance becomes a journal in the entity that missed it, so both loan accounts close on the same figure.
Journal previewInteractive preview · sample data| Account | Debit | Credit |
|---|---|---|
| Repairs and maintenance | 6,750.00 | |
| Loan from Harbour Holdings | 6,750.00 | |
| Total | 6,750.00 | 6,750.00 |
Interactive demonstration with sample data, based on the AccountKit interface.
Xero · Harbour Trading Pty Ltd
Manual journal, 30 Jun 2026
Posted
Illustrative journal with sample entities. Account names are examples.
Related tools
Tools that sit beside this one
- Compliance
Division 7A tool
Interest and minimum yearly repayments calculated across every loan, with a forecast for dividend planning.Scrub the loan schedule - Compliance
Equipment finance
Regular or irregular finance schedules that post their entries and reconcile through the year.Watch the schedule build
Also in the toolkit
- Account reconcilerReconcile disbursement, suspense and clearing accounts through the year, linked back to source verifications.
- Client mapping toolDiagrams of client structures, software and processes, with client details kept in sync.
The heart of your firm
Reconcile a client group’s loans in AccountKit
Start a free 14-day trial and group a real client’s entities, or book a demo to see the matching with the team.
