Setting up bank feeds helps you simplify your daily transaction management. Instead of manually uploading bank statements, you can directly connect your bank account and let your accounting software import data automatically. Once the bank feed is active, your transactions are fetched regularly, keeping your records up to date. This not only saves you a lot of time but also reduces errors, making your accounting process smoother and more reliable.
In this guide, we will walk you through the steps to enable bank feeds in your software.
What does setting up bank feeds mean?
Setting up bank feeds means connecting your bank account directly to your accounting or reopening system so that transactions are imported automatically. Once the connection is in place, your bank sends transaction details like dates, amounts and descriptions on a regular basis.
To put it simply, it means your records stay up to date with minimal effort. Thus helping you maintain accurate financial data at all times.
How do you enable the bank feeds feature?
Follow these steps to enable the bank feeds feature on your accounting software:
Step 1: Open the import bank statement feature
You should start by navigating to the Bank Feeds or Import Bank Statement section in your accounting software. This is usually found under the Banking or Transactions menu. This screen is where you’ll begin setting up the automatic import of your transactions.
Step 2: Select the relevant bank account
Choose the bank account for which you want to import transactions. Ensure the account is already created in your system and configured correctly to receive imported data.
Step 3: Specify file details
Provide the file path where your bank statement is stored. Select the file type supported by your software. After that, select the correct bank statement file to import.
Step 4: Enable preview before import
If available, turn on the Preview option to review the imported transactions before adding them to your books. Thus helping you in avoiding errors related to incorrect files or wrong periods.
Step 5: Import the bank statement
Proceed to import the bank statement. The system will read the file and display a preview of the transactions to ensure everything is correct before completing the import.
Step 6: Review the import summary
After the import, check the summary report to see the total number of transactions imported and any exact matches with existing records. This helps you quickly spot any discrepancies.
Step 7: Reconcile transactions
Finally, open the Bank Reconciliation feature in your software. Here, you can match and reconcile the imported bank transactions with your accounting records to ensure everything is accurate and up to date.
What common issues occur during bank feed setup and how can they be resolved?
Here are some of the common issues, along with the solution:
- Wrong bank ledger selected: This usually happens when the incorrect bank ledger is chosen during import. You can resolve this by resetting the bank statement data and re-importing the statement using the correct ledger.
- Incorrect statement period imported: Sometimes, the bank statement may be imported for the wrong date range. In such cases, reset the imported bank data and re-import the correct statement.
- Unsupported file format: If the file type is not supported, the import may fail. Always ensure the File Type is selected as Supported before proceeding.
- Duplicate or unmatched entries: You may notice duplicate or unmatched transactions during reconciliation. Reviewing the Bank Statement Preview and using the Bank Reconciliation Summary helps you identify and fix these issues.
- Missing or incomplete transactions: This can occur due to incomplete files. Verify the statement file before import to ensure all transactions are included.
Conclusion
Bank feeds help reduce manual effort, minimise errors and keep your financial records up to date at all times. Once set up properly, you can focus more on reviewing and analysing your data instead of spending time on repetitive tasks.
Overall, enabling bank feeds helps you maintain better control over your finances and improves your day-to-day accounting workflow. To experience these benefits and streamline your accounting further, get started with TallyPrime today.
