What is a bank feed in accounting?
A bank feed is a secure, automated connection between a business bank account and accounting software that automatically imports transaction data into the accounting system. Rather than manually entering each transaction, a bank feed keeps your financial records up to date in real time, reducing the risk of errors and saving significant time on bookkeeping.
Bank feeds are established using Application Programming Interfaces (APIs) or Secure File Transfer Protocol (SFTP), which ensure that data is encrypted and transmitted securely. You retain full control over the connection and can disconnect it at any time through your bank or accounting software.
How does a bank feed work?
Once a bank feed is set up, your bank sends transaction data — including payments in, payments out, fees, and balances — to your accounting software, usually on a daily basis. From there, you can review, categorise, and reconcile each transaction against your sales records, invoices, and other financial data.
Benefits of using bank feeds
Bank feeds offer several key advantages for Australian businesses:
- Reduced manual data entry, minimising the risk of human error
- Real-time visibility into cash flow and financial position
- Faster bank reconciliation, freeing up time for other business tasks
- Secure data transfer without sharing online banking login credentials
- Seamless integration with accounting features like invoicing, expense tracking, and reporting
Most major Australian banks — including Commonwealth Bank, Westpac, ANZ, and NAB — support bank feeds with popular accounting platforms. Setting up a bank feed typically involves registering with your accounting software provider and then authorising the connection through your online banking portal.