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Accounting Bank Feeds – Problems, causes and solutions Posted on April 28, 2023
For many businesses, using bank feeds to automatically import transactions into their accounting software has become a convenient and time-saving solution. However, despite the benefits, bank feed problems can sometimes occur and cause frustration for accountants and bookkeepers. In this article, we will explore some common causes for bank feed problems that occur and provide some solutions to help you avoid them.
So what are Bank Feeds?
Bank feeds are a feature offered by many accounting software programs that allow users to connect their bank accounts to their software. This connection allows transactions to be automatically imported into the software, which can save a significant amount of time compared to manually entering all bank transactions.
Common Bank Feed Problems
One common bank feed problem is missing transactions. This can occur when a transaction that has been processed by the bank does not appear in the accounting software. There are several possible reasons why this might happen:
- Delayed processing by the bank
- Technical issues with the bank or the accounting software
- Duplicate transactions that are hidden
To avoid missing transactions, it is important to regularly reconcile your bank accounts to ensure that all transactions are accounted for. Additionally, if you notice a transaction is missing from your bank feed, you should reach out to your bank or software provider to investigate the issue.
Another common bank feed problem is duplicate transactions. This occurs when the same transaction is imported into the accounting software multiple times. Duplicate transactions can cause confusion and make it difficult to reconcile your bank accounts.
How to avoid duplicate transactions, it is important to regularly review your bank feed and remove any duplicate transactions that you find. Some accounting software programs have features that can help identify and remove duplicate transactions automatically.
Occasionally, bank feeds can import transactions that are incorrect or do not match the intended transactions. This may occur due to errors in data entry, technical issues with the bank or the accounting software, or discrepancies in account numbers or other identifying information.
It is important to carefully review all transactions imported from your bank feed and ensure that they match the intended transactions. If you notice any discrepancies, you should investigate them and make any necessary corrections, by matching against the bank statement.
Outdated or Incomplete Data
Another issue that can occur with bank feeds is outdated or incomplete data. This can happen when the bank feed does not update in “real time” or when certain types of transactions are not supported by the bank feed.
To avoid outdated or incomplete data, it is important to regularly check the date of your last bank feed update and ensure that all transactions are accounted for. Additionally, you should be aware of the limitations of your bank feed and supplement it with manual data entry when necessary.