Entering every bank transaction manually is time-consuming and easy to get wrong. Bank feeds solve this by automatically bringing your bank transactions into Xero, saving you time and keeping your accounts accurate. By the end of this lesson, you’ll know how to check if your bank supports a feed, set it up, and manage it so your bookkeeping becomes effortless.
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Bank feeds create a direct, secure connection between your bank account and Xero. Once connected, your daily transactions (money in and out) automatically flow into your Xero file without you needing to upload anything manually.
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Most feeds update daily, some even multiple times per day. This means your transaction list in Xero stays up to date, giving you a live view of your cash flow without logging into your bank account every five minutes.
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Bank feeds use encrypted connections and bank-level security to move information safely between your bank and Xero. You never give Xero access to actually move your money, only to see your transaction history.
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Because the transactions come directly from your bank, they reduce human error. You’re not retyping or guessing amounts, it’s the exact data from your statement, ready for reconciliation.
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Each imported transaction appears on your Xero dashboard, where you can easily match it to an invoice, bill, or transfer. This turns bookkeeping from a manual grind into a quick daily habit.
HOW DO BANK FEEDS WORK??
INTRODUCTION TO BANK FEEDS
Bank feeds are a powerful time-saver in Xero, creating a secure link between your bank account and your Xero file so transactions flow in automatically each day. This keeps your books up to date, reduces human error, and makes reconciliation quick and painless. In this lesson, we’ll cover how bank feeds work, how to check if your bank supports them, how to set up and manage feeds, and what to do if you need to update or reconnect them, giving you an accurate, stress-free view of your cash flow.
IT ALL BEGINS WITH AN IDEA
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IT ALL BEGINS WITH AN IDEA ✦
DOES YOUR BANK SUPPORT DIRECT FEEDS?
1. Start from Xero’s Bank Connections Page;
In Xero, go to Accounting → Bank Accounts → Add Bank Account. When you start typing your bank’s name, Xero will show a list of matching options. If your bank appears, it likely supports a direct feed.
2. Look for the “Connect Bank Feed” Option: When you select your bank, Xero will either show a “Connect Bank Feed” or “Set Up Bank Feed” button. If this option is available, you can connect your account directly and begin importing transactions automatically.
3. Check Xero’s Bank Feed Directory: You can also visit Xero’s official Bank Feed Directory online (just search “Xero bank feeds [your country]”). It lists all banks and account types that currently support feeds, plus notes on whether the connection is direct, via Yodlee, or manual import only.
4. Confirm with Your Bank: Some banks require you to apply for a direct feed through their own website or form. If you’re unsure, contact your bank’s business banking team — they’ll confirm whether your account type is compatible and what setup steps are needed.
5. Know the Alternatives: If your bank doesn’t appear in Xero or only supports manual import, don’t panic. You can still upload statements (CSV, OFX, QIF files) manually. The key is choosing the method that keeps your data flowing smoothly with the least effort.
1. Start from Your Xero Dashboard: Go to Accounting → Bank Accounts and click Add Bank Account. Search for your bank by name and choose the correct option from the list. Each bank connection is unique, so make sure you select the exact match for your country and account type (personal vs business).
2. Follow the Secure Connection Steps: When prompted, log in to your online banking through the secure window that Xero opens. You’ll usually need to use two-factor authentication — that’s just your bank’s way of confirming it’s really you. Once connected, choose which accounts you want to share with Xero (e.g., everyday, savings, credit card).
3. Set the Start Date Carefully: Xero will ask when to start importing transactions. Choose a start date that lines up with your bookkeeping — usually the first day after your last manual statement import or the start of your current financial period. This avoids duplicate or missing transactions later.
4. Confirm and Authorise the Feed: Before finalising, double-check the account name and number match your Xero setup. Then confirm the authorisation. Some banks activate the feed instantly, while others take a few business days to process. You’ll get a confirmation email when it’s ready.
5. Check and Refresh Your Feed: Once connected, go back to your Bank Accounts dashboard and hit Get Bank Transactions (or Refresh Feed) to make sure it’s working. If transactions appear automatically, you’re all set. If not, give it 24–48 hours or check your bank’s online portal for pending authorisation.