Bank Feeds let you connect your bank account directly to your accounting software, automatically importing all transactions saving the need to import them all manually.
This service needs to be set up every 90 days and it is important to keep on top of this so there aren’t any gaps when reconciling.
Creative Takeaways
- Automate bank transactions – Save time on manual imports.
- Reduce errors – Minimise typos, duplicates, and missing entries.
- Speed up reconciliation – Match transactions quickly.
- Improve cash flow visibility – Get real-time insights.
- Automate expense tracking – Simplify tax and VAT prep.
- Manage multiple revenue streams – Keep all income sources organised.
- Collaborate with accountants – Instant access for smoother tax processes.
Table of contents
1. The benefits of bank feeds
The service is especially important as it helps to speed up the process for everyone, as accountants we can reconcile your bank quicker and easier.
This is because bank feeds can also match transactions with invoices and bills meaning all you have to do is approve the reconciliation.
You can also set up bank rules which can further cut down the time taken to reconcile as once set up these processes will be carried out automatically which generally leads to less errors and increases efficiency.
As the business owner, it gives you a clearer overview of how your business is performing, which then gives a good indication on the cash flow. This also enables you to make better and more educated decisions on your business as you will have a more accurate and easier overview of your cash- helping you budget and plan.
There are lots of different accounting software packages a business can use. One of the leading systems is Xero. We are Xero Gold partners and it is our software of choice.
2. How to set up bank feeds in an accounting software?
The instructions below show you how to set it up in Xero.
- In the Accounting menu, select Bank accounts.
- Click Add Bank Account.
- Select from popular banks, or start typing your bank’s name, then select from the list: If the name of your bank doesn’t appear in the list, click Add it anyway. Xero doesn’t have a direct feed with this bank and you’ll need to manually import your bank statements.
- You’ll be taken to your bank to log in, enter your online banking credentials and any multi-factor authentication required.
- Select the accounts you want to share with Xero and complete the sharing steps before you are redirected back to Xero.
- Check that the right bank accounts have been selected. Choose a different bank account if necessary or add a new account.
- Confirm the date you’d like your transactions to start from. You can import up to 12 months’ worth of transactions. For bank accounts already in Xero, this will default to the last transactions imported into the account and there is no need to change it.
- Click Finish and you’re ready to go!
3. Bank feeds make your business more efficient
The truth is, managing finances shouldn’t slow you down.
Bank feeds automate transaction imports, reduce errors, and keep your records up to date, so you can focus on growing your business.
Let’s see how bank feeds can really help you:
- Saves you hours on admin: No more downloading statements or manually entering transactions. Bank feeds pull everything in automatically.
- Reduces human error: Automated imports mean no typos, missing transactions, or duplicated entries.
- Speeds up bank reconciliation: Most accounting software suggests matches for transactions, so you can reconcile accounts in seconds.
- Cash flow visibility: Get real-time updates on income and expenses.
- Automates expense tracking: Transactions are automatically categorised. Tax prep and VAT returns are effortless.
- Manages multiple revenue streams: Bank feeds bring royalties, client payments, sales into one place for easy tracking.
- Security & fraud detection: Encrypted, read-only access means no one can move your money – just track it.
- Accountant collaboration: Your accountant gets instant access to up-to-date records, so tax time is stress-free.
- Keeps your business HMRC-ready: Accurate records mean smooth VAT returns, self-assessments, and tax compliance.
4. Bank feeds successfully give you an up-to-date view of your business
With open banking bank feeds, you can automate the flow of transaction data between your bank account and accounting software. Wouldn’t it be great to eliminate the need for manual data entry
We help businesses set up bank feeds successfully. We help you make the connection between your bank and accounting software. We simplify the process of bookkeeping, tax compliance, or financial data management, so you can save time, keep your data safe, and focus on making better business decisions.
You can reach out to us today to connect your bank, and take the hassle out of managing transactions.
