My next step in getting MYOB and Xero up and running is signing up for bank feeds.
What’s the big deal with bank feeds? The idea is (and I’ll explain more once I’ve actually done it) that you hook up your bank account with your accounting data so that when you open up Xero or LiveAccounts, there’s all your bank transactions, ready to go.
What happens next is that, just like a puppy, you ‘train’ Xero or LiveAccounts to recognise where each of these transactions belong. For example, I pay Stayz every month for commission on my holiday house bookings. I’ll train Xero to recognise the name ‘Stayz’ and automatically allocate this transaction to my Commission Expense account.
You may have come across something similar if you’ve ever tried to import banking transactions into MYOB or QuickBooks. However, importing bank transactions involves logging onto your Internet banking, creating a bank file, then going to your accounting software, importing this bank file, and then manually adding or matching transactions. In other words, importing bank transactions is such a pain in the **** that hardly anyone ever bothers. It’s usually quicker either to a) type transactions in from scratch or b) use your accounting software as the banking portal for paying suppliers and employees.
With bank feeds, you open up LiveAccounts or Xero and the data is simply there. Not only that, but you can ‘train’ the software to recognise transactions and code them automatically.
If only I could train my puppy to do something as useful as this. She’s a mean frisbee catcher however. That’s got to count for something. Here she is:
By the way, signing up for bank feeds seems pretty easy so far. With Xero, I just had to click a link in my ANZ Internet banking and the bank feed is apparently in process (should take 2 working days). With MYOB, I’ve been prompted to print off a form which I’ve got to fill out and then post to Sydney. Doesn’t say how long it will take, but hopefully not too long!
Are there any readers of this blog who already use the bank feeds features in Xero or LiveAccounts? I’d love to hear about your experiences.