More on Bank Feeds and Rules

Happy New Year everyone! I’m back at my desk after a delightful and carefree summer break.

And back at my whole cloud accounting/Xero/MYOB experiment.

Today I log onto Xero. I’m interested to see what my stuff looks like because I only got the bank feed feature going just before Christmas. And I have to  say I’m impressed. I go to my ANZ account and there are all my transactions, in a neat list, looking like this:

Xero and cash coding

Xero and cash coding

I’m not normally an effusive kind of person, but it’s hard to keep the evangelical edge out of my voice when I write about this. I’ve been working with accounting software for waaay too long (15 years plus) and this way of working is the biggest improvement in efficiency I’ve seen in that time. With bank feeds, data-entry is already a fraction of what it normally is with regular accounting software. With bank rules, I imagine I’m going to reduce this even further.

Not only that, but the data entry I do have to do seems very intuitive. For example, as I whiz down the list allocating an account for each transaction, if I type the letters ‘clean’ into the Account field Xero comes up with all the accounts that include those letters. So in my case, I can choose between the accounts ‘Cleaning Subcontract’ and ‘Cleaning Materials’. For most accounts, I only have to type a couple of letters and the account is selected.

So far today, my only disappointment is that I set up a rule for Receive Money just before Christmas, telling Xero to code all deposits to Accommodation Income, and this hasn’t worked. Not sure why! But I’ll troubleshoot this rule later.

Meanwhile, I’m still really interested in this rules business, because hey, if I get it right, I think I may never have to spend more than a few minutes a month doing my books. And that would be bliss. So I return to rules and try to create a few more.

This time I focus on rules for expenses. If I go to the Reconcile tab, and to where it says Review Imported Statements Lines, I find that I can click Create Rule against any of these transactions. Xero makes its best bet by creating a rule automatically.

I end up with a few rules, for example saying that any transaction with Telstra in the bank statement reference should get coded to Telephone Expense, any transaction with Country Energy in the bank statement reference should get coded to Electricity Expense, and so on. Here’s what my rules look like:

My Xero Bank Rules

Setting up bank rules in Xero

Seems easy, although I’m a little disappointed that I can’t run these rules on existing uncoded transactions to test whether they work or not. I guess rules only work with future transactions? If any readers of this blog can clarify this for me, I’d appreciate it.

Anyway, after creating these rules I return to the Cash Coding screen and whizz down the list. I code 23 transactions in just a few minutes. Seems all very easy and quick.

Next blog I’m going to repeat this very same process on the same bank account using MYOB LiveAccounts (I just logged on and my ANZ bank feed has been activated – yippee!).

But now, I’m going to take a pile of proofreading (the next edition of MYOB Software For Dummies is getting ready to go to print) and sit in my favourite coffee shop in Wentworth Falls and watch the world go by. It’s going to be 33 degrees today, so I guess I should do some work while I can still concentrate.

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About veechicurtis

a one-woman geekspeak to plain-english converter
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3 Responses to More on Bank Feeds and Rules

  1. Pingback: Counting the Costs of Cloud Accounting for a Micro Business | Cloud Accounting Review

  2. Pingback: A Candid Review of CashBook Online | Cloud Accounting Review

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