Business owners are in a better position to know the significance of time. They have been using all the advanced technology to save time and focus more on their productivity and business development. If there is a simple way to handle their cash flow and decrease the time invested in financial administration then they will certainly use it.
Bank feeds are said to be an easy solution to handle the cash flow. Xero is accounting software, which needs to be synched with your bank account. It helps to eliminate manual data entry and saves significant time. In addition, the accessible financial information from Xero gives you an ongoing clarity of available cash flow.
To experience the advantage of transactions getting automatically pushed into Xero, you need to setup bank feeds. Bank feeds can be activated in many ways, but technically they fall under two kinds.
- Direct feeds
- Yodlee feeds
You can apply direct feeds, which can be performed between your current business account/s and Xero accounting software.
How to activate direct bank feeds?
In direct bank feed, daily transaction details are sent straight to the accounting software. To activate direct bank feeds first it is necessary to recognize what bank accounts need to be synched with Xero. A bank form needs to be completed with details of bank accounts and organizations. This process includes you to –
- Access and print the bank forms
- Fill the asked information appropriately
- Get the relevant people sign forms
- Scan the forms
- Submit forms
- Follow up with the Xero bank feed support. (It allows you to know that they received the forms and everything is accurate)
How Xero works automatically?
Here is an example for easy understanding, an account and a tax code is allocated to bank fees transaction. In future, all bank fees having similar description will suggest automatic coding. You will just need to hit OK button.
Due to automatic set up, the risk of manual entry errors get reduced significantly.
Benefits of direct bank feeds for business
A small change like this in your daily procedures can mean saving time and money for your business.
- You can keep track of your daily, ‘comings and goings’
- You gain transparency of cash flow, all the time
- Eliminates the need to enter data manually
- A streamlined reconciliation procedure
- Deep insight of finances through real-time entry of incomes and expenses
- Business owners get more time to focus on core activities
- You just need to pay for the software but there are no configuration or ongoing charges to receive bank feeds involved
Once the accounting software and bank account is setup, the direct feeds from eligible bank accounts automatically get downloaded on your Xero accounting software. Another advantage is that you can allocate the feed to match with right bill of lading or expense. This saves a lot of time and effort.