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Understanding Xero Bank Feeds: A Complete Guide by JacRox Accountants
Welcome to the modern era where traditional banking meets digital convenience. If you’re a small business owner utilising Xero, then the concept of bank feeds – available through Xero Central – can be a game-changer. In this guide, we’ll delve deep into the world of Xero bank feeds, including how to connect your bank to Xero and the advantages of open banking.
What is a Bank Feed and Why is it Crucial in Xero?
A bank feed is a direct connection between your bank and Xero. This feature allows bank transactions to be automatically imported into Xero each business day, streamlining your accounting processes.
Key Features: Bank Feeds Available in Xero
Direct Bank Feeds: The Golden Standard
- Automatic Import: Direct bank feeds automatically import transactions into Xero.
- Regional Availability: Check if your bank feed is available for your region.
Open Banking: A Revolutionary Approach
- Security: Open banking is the UK’s regulatory response to EU banking industry standards.
- Convenience: Refresh your bank connection every 90 days to keep the bank feed active.
Setting up a Bank Feed: How to Connect Your Bank to Xero
Connecting your bank to Xero is a straightforward process. Follow these steps to get your bank transactions into Xero:
- Dashboard Access: Navigate to the dashboard in your Xero organisation.
- Bank Account Selection: Choose the right bank accounts for the connection.
- Online Banking Credentials: Enter your online banking credentials and any multi-factor authentication required.
- Follow the Prompts: You’ll be taken through a series of prompts to finalise the connection.
Troubleshooting: Issues with Bank Accounts or Feeds
Despite its efficiency, you may encounter disruptions to bank feeds or issues with bank accounts. If your statement hasn’t imported as expected, manually refresh the feed or try these suggestions to see if you can fix the issue.
What’s Next: Keeping Your Bank Feed Updated
Once your bank feed is connected and transactions are imported as expected, your financial data will be ready for you to reconcile in Xero. Make sure to update the consent within Xero every 90 days to keep the bank feed active.
Conclusion: Xero Bank Feeds Simplify Your Financial Management
Bank feeds in Xero centralise your financial data, making it easier to manage your bank accounts and transactions. Whether you opt for direct bank feeds or leverage open banking, the benefits are clear. Xero bank feeds let you focus on what really matters—running your business efficiently.
To connect your bank account to Xero, navigate to your dashboard in your Xero organisation. Choose the right bank accounts you wish to connect. You’ll be prompted to enter your online banking credentials and any multi-factor authentication that may be required. Follow the on-screen prompts to finalise the connection. Your bank transactions will then be imported into Xero automatically each business day.
If your bank feed is late or transactions haven’t been imported as expected, you can manually refresh the feed from within Xero. If that doesn’t resolve the issue, you may need to check if there’s a known delay or disruption to bank feeds for your region. If problems persist, it’s advisable to consult your bank.
Open banking is a secure way to connect your bank account to Xero. It’s part of the UK’s regulatory response to EU banking industry standards. You’ll need to renew your consent within Xero every 90 days to keep the bank feed active, ensuring an ongoing secure connection.
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