Xero JAX vs CodeIQ: two ways to code the bank.
Xero’s AI, JAX, reconciles bank feed lines inside Xero when it is highly confident and leaves the rest for you. CodeIQ codes a whole statement through an eight-phase pipeline and posts it to Xero, QuickBooks, Sage or Pandle once you have reviewed it. They overlap less than the labels suggest.
Built into Xero. Works on feed lines as they arrive. Four methods: Rule, Match, Memory, Prediction. Automatic reconciliation in beta, on Grow and above or as an add-on.
A separate app for Xero, QuickBooks, Sage and Pandle. Works on any statement, for any period. Eight phases, then RiQ on the uncertain lines. Nothing posts until you approve it.
One month, coded two ways.
Eight lines from an illustrative café’s current account, with the label each product would attach. JAX’s outcome on any line depends on its confidence, so treat its column as typical rather than certain.
| Bank line | Amount | Xero JAX | CodeIQ |
|---|---|---|---|
| CARD 4521 TESCO STORES | −42.18 | MemoryCoded as you coded Tesco before. | 03 HistoricalThe client’s own ledger history. |
| FPS ACME LTD INV-1042 | 960.00 | MatchPaired with the open invoice in Xero. | 02 Invoice matchingPaired with the open invoice. |
| TFR TO SAVINGS | −2,000.00 | MatchXero says JAX now recognises transfers between your accounts. | 01 TransferEqual and opposite in the savings account. Posts as a transfer that needs one click in Xero. |
| DD HMRC VAT | −1,840.00 | RuleYour bank rule for HMRC VAT applies. | 03 HistoricalCoded to the VAT liability, as every quarter before. |
| SHELL 4521 | −61.30 | PredictionFrom how other Xero users code Shell. | 04 Universal patternCrowd-sourced merchant pattern, then VAT set in phase 08. |
| CARD 4521 MAKRO WHOLESALE | −318.40 | PredictionIf JAX is confident enough. | 05 MCC categoryCard merchant category (wholesale) mapped to Purchases. |
| BACS NORTHFIELD | 1,450.00 | Left for youOne payment for two invoices: Xero’s August 2026 update lists this among the cases it is still working on. | 02 Invoice matchingOne payment matched to two Northfield invoices. |
| CARD KOFI ROASTERY | −86.40 | Left for youA new supplier: not confident, so not reconciled. | 06 Semantic → RiQMeaning suggests cost of sales; low confidence, so RiQ takes a second look and you confirm. |
Side by side, point by point.
Xero’s side comes from Xero’s own pages, checked on 13 October 2026. Sources are listed below the table.
| Point | Xero JAX | CodeIQ |
|---|---|---|
| Where it runs | Inside each Xero organisation. | A separate app that posts to Xero, QuickBooks Online, Sage or Pandle. |
| What it works on | Bank feed lines, reconciled in real time as they import. | A statement for any period, uploaded (CSV, Excel, PDF or a photo or scan of the statement), or pulled from a client’s upload inbox, so backlogs too. No feed needed. |
| How it decides | Four methods: Rule, Match, Memory, Prediction. Each reconciled line shows which method it used. | An eight-phase pipeline: transfers, invoice matching, the client’s history, crowd-sourced patterns, card category, semantic meaning, your corrections, then VAT. Each line records the phase that settled it. |
| When it is unsure | Reconciles only when highly confident; the rest waits for you. | Codes every line; low-confidence lines go to RiQ for a second look, then to you. Nothing posts until you approve the batch. |
| One payment, several invoices | Xero’s August 2026 update lists this among the cases it is still working on. | Matches one payment to up to five invoices from the same customer or supplier, and several part payments to one invoice. |
| Transfers | Recognises transfers between your own accounts. | Phase 01 detects them; in Xero they post as suggested matches, because the API cannot mark transfers reconciled. |
| VAT | A tax rate is set with each reconciliation and can be edited on the Reconciled page. | Phase 08 classifies VAT (standard, reduced, zero, exempt, no VAT) and maps it to the platform’s own codes. |
| Bills and receipts | JAX captures bills and receipts: snap, email or upload them and it reads and files them. | Drop PDF or image invoices into the session; OCR reads them and matches them to the bank lines (10 credits per invoice synced). Contacts are matched on Xero and QuickBooks. |
| Many clients | Runs inside each client’s own Xero organisation; reconciliation happens one organisation at a time. | Up to ten client sessions in one browser, in tabs, processing in the background. |
| Status and plans | Automatic reconciliation is in beta. Grow, Comprehensive and Ultimate; Simple and Ignite through the AI Automate add-on. | Live on every ReconcileIQ plan, including the free tier. |
| Cost | Included in Grow (£39 a month excluding VAT) and above. The add-on price is not listed on Xero’s page. | 4 credits a line for automatic coding; coding a line yourself is free. 1,000 free credits; Starter £5 a month for 5,000. |
| Accuracy (each vendor’s own claim) | Xero’s JAX page says 97% accurate. | About 95% of recurring merchants and 80 to 85% of first-seen ones coded exactly as you would. |
Sources, checked 13 October 2026: Xero, JAX and bank reconciliation software (UK); Xero Blog, automatic bank reconciliation beta (20 November 2025) and what’s new in Auto Bank Reconciliation (14 August 2026). Xero changes its plans and features often; check its pages for the current position.
Where each one is the better fit.
An honest split. JAX is the obvious choice for some books, and nothing below takes that away.
JAX, when…
- Every client is on Xeroand has a working bank feed, so lines arrive daily and JAX can clear them as they land.
- You want nothing extraIt is already in Xero on Grow and above: no other login, no credits, no export.
- Review happens in XeroThe Reconciled page shows what JAX did and lets you change an account or tax rate without undoing it.
- Bank rules already carry the loadRule is one of JAX’s four methods, so a well-kept rule set feeds straight into it.
CodeIQ, when…
- There is a backlogMonths of uncoded lines, a statement with no feed, or a new client’s catch-up: CodeIQ codes any period in one batch.
- Clients are on more than XeroThe same review and posting flow for QuickBooks Online, Sage and Pandle clients.
- Payments settle several invoicesRemittances that pay two or more invoices are matched rather than left for you.
- You code many clients in one sittingUp to ten sessions in one browser, each with its own chart of accounts, VAT codes and connection.
- You want to see every line before it postsCodeIQ codes the whole batch, but nothing reaches the ledger until you approve it.
JAX on the feed, CodeIQ for the rest.
They do not have to compete. A practice can leave Xero automatic reconciliation running on clients with clean feeds and use CodeIQ for the catch-up work, the non-Xero clients and the lines JAX leaves behind.
For coding inside Xero itself, our guides cover Xero bank rules and cash coding in Xero.
- Connect Xero to CodeIQ by OAuth: it reads the chart of accounts, tax rates and open invoices.
- Upload the statement (or pull one a client has sent in) for the period you need, however old.
- Review the coded batch: the phase behind each line is shown, and RiQ’s second look sits beside the uncertain ones.
- Post with the bank-feed toggle set: with a feed, lines arrive in Xero as suggested matches; without, they post reconciled.
- Finish transfers and invoice payments in Xero with one click each: Xero’s API does not let any software mark those reconciled.
Xero JAX and CodeIQ, answered.
What people ask about Xero’s AI and automatic reconciliation, and where CodeIQ fits. More in the CodeIQ FAQ.
What is JAX on Xero?
JAX is the Xero AI, built into Xero. Its best-known job is automatic bank reconciliation: as statement lines arrive through the bank feed, JAX reconciles the ones it is highly confident about and shows which method it used (Rule, Match, Memory or Prediction). Xero’s JAX page also lists reading receipts and bills, sending invoices and answering questions about your figures. Xero describes automatic bank reconciliation as still in beta.
How do I use JAX in Xero?
Automatic bank reconciliation is switched on per bank account. It is available on Xero’s Grow plan and above, and on Simple and Ignite through the AI Automate add-on. Once it is on, reconciled lines appear on the Reconciled page showing which method JAX used, you can filter to the lines JAX reconciled, and you can change the account code or tax rate there without undoing the reconciliation. Lines JAX is unsure about wait for you in the usual way. Check Xero Central for the current steps, as the feature is still changing.
Can Xero reconcile bank transactions automatically?
Yes, in part. Xero can auto reconcile bank lines through JAX, but only when JAX is highly confident; the rest are left for you. Xero’s August 2026 update lists payments that cover several invoices among the cases it is still working on. Bank rules and cash coding speed up the lines that remain.
Do Xero bank rules still matter with JAX?
Yes. Rule is one of JAX’s four methods: when one of your bank rules applies, JAX can reconcile the line with it. Rules are still worth setting for regular payments with fixed accounts. Our guide to Xero bank rules covers how to set them up and where they stop.
What is cash coding in Xero?
Cash coding is Xero’s spreadsheet-style view for reconciling many statement lines at once: you can view and sort up to 200 lines and code similar ones together. It is on the Grow, Comprehensive and Ultimate plans. Our guide to categorising transactions in Xero walks through cash coding in Xero step by step.
Does CodeIQ work with Xero?
Yes. CodeIQ connects to Xero by OAuth, reads the chart of accounts, tax rates and open invoices, codes the statement, and after you approve the batch posts it back to Xero. You tell it whether a bank feed is connected: with one, lines arrive in Xero as suggested matches; without, they post reconciled. Xero’s API does not let any software mark transfers or invoice payments as reconciled, so those need one click in Xero.
Is CodeIQ a replacement for JAX?
Not necessarily. JAX works on live feed lines inside one Xero organisation and costs nothing extra on Grow and above. CodeIQ suits the work JAX does not reach: a backlog or a statement with no feed, clients on QuickBooks Online, Sage or Pandle, payments that settle several invoices, and a practice coding many clients in one sitting. Plenty of setups would use both: JAX on the feed, CodeIQ for the catch-up and the clients who are not on Xero.
Which costs less, JAX or CodeIQ?
JAX automatic reconciliation is included in Xero Grow (£39 a month excluding VAT) and above; on Simple and Ignite it is a paid add-on whose price Xero’s page does not list. CodeIQ charges credits for automatic coding: 4 credits a bank line, and coding a line yourself is always free. The free tier’s 1,000 one-off credits cover 250 lines, and Starter at £5 a month adds 5,000 credits, enough for 1,250 lines.
The rest of the suite.
CodeIQ is one of five ReconcileIQ products. Three more pick up where it leaves off:
Matches the statement against the books after posting, lists every difference and pushes fixes back.
Bank Reconciler features → LedgerIQTurns the coded ledger into management accounts, 44 analysis modules and a board pack.
LedgerIQ features → PrepIQAt the year end, prepares the working papers from the clean ledger, every posted figure cell-linked.
PrepIQ features →Code the lines JAX leaves behind.
Free to start: no card, 1,000 credits, and coding a line yourself is always free. Bring a Xero client’s backlog and see what CodeIQ codes.