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What are Bank Feeds and how do they work?

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What are Bank Feeds and how do they work?

Bank feeds are an integral part of efficient bookkeeping. You do not have to worry about manual data entry and the mistakes that may occur with this. Bank reconciliations are quicker, and you have the ability to easily mark invoices and bills as paid. Most cloud accounting packages offer the bank feed feature.

All cloud accounting packages will use a third-party provider to make the secure connection between a bank and accounting package. For example, Clear Books currently use Plaid as the third-party app. It is important to note the information is passed from the bank, through the third-party app and finally directly imported into the cloud accounting package. The information regarding bank transactions or the details required in setup are not shared with any other parties.

Your consent to the third-party app and accounting package will last for 90 days as a security measure. The accounting package will prompt you when this 90-dayperiod is nearing the end; simply provide consent again for another 90 days.

If you do not wish to use bank feeds but are still looking for an alternative to unnecessary time spent of manual data entry, the alternative solution is a quick and easy CSV import. Simply login to your online banking, search for dates that cover the bookkeeping/VAT period and download the statements in a CSV format. Depending on what accounting package you use, you will need to amend the CSV report so that it can be directly imported into your chosen cloud accounting package.

If you complete your own bookkeeping and wish to discuss the contents of this article, please do not hesitate to contact Jake on 01227 277667 or by emailing him at j.mackenzie@mphaccountants.co.uk.

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