All 26 Computerized Bookkeeping questions
More in Computerized Bookkeeping
What is a batch versus real-time processing in bookkeeping software? How does software help with VAT returns? What does 'Making Tax Digital' (or similar digital tax rules) require? What is the chart of accounts (nominal codes) in accounting software? How are errors corrected in computerized bookkeeping compared with manual? What is cloud accounting and how does it differ from desktop software? How does computerized bookkeeping produce the trial balance and financial statements? What is period-end closing (locking) in accounting software? What is the risk of miscoding transactions in software, and how is it controlled? How does software enforce segregation of duties?
Advertisement
Back to results for “Bank Reconciliation”
Bookkeeping › Computerized Bookkeeping

How does bank feed and bank reconciliation work in accounting software?

Intermediate

Answer

Bank feeds automatically import transactions from the bank into the software. The user matches (reconciles) each imported line to a recorded invoice/payment or creates a new entry, and the software flags matched items. This automates much of the bank reconciliation, keeping the cash book continuously agreed to the bank.
Real-world example Xero imports the day's bank transactions and suggests matches, letting the bookkeeper reconcile with a few clicks.

Common follow-ups: What does a bank feed automate? | How is matching done?

Bank Reconciliation Cash Book & Petty Cash Computerized Bookkeeping
All 26 Computerized Bookkeeping questions