Bank feeds and reconciliation

A bank feed brings transactions into accounting software. Matching identifies what each movement relates to; reconciliation checks the account against a bank statement at a stated date. A feed does not complete either review for you.

Set up the accounts

List each business bank account and credit card. For each, identify the corresponding ledger account, the person authorised to connect it and the date from which transactions should arrive. Check the bank and account type: a bank appearing on a provider's list does not establish that every account is eligible.

Agree on the starting ledger balance and identify transactions already entered. Feed history varies by provider and institution. Before importing an older statement file, compare its dates with the feed so the same bank movement is not imported twice. If a suitable feed is unavailable, a supported manual statement import can provide the bank lines; it still needs review and reconciliation.

Allow for feed timing

In MYOB, a newly approved bank feed does not bring in earlier transactions: the bank sends transactions after approval. If you need records from before the feed became active, import the past transactions separately and check for overlap with feed activity.

A transaction may not appear as soon as you make it. For MYOB bank feeds, depending on how often the bank sends data, it will likely arrive the next business day during business hours, after the bank has processed it.

In MYOB, check the Banking hub to confirm the feed is active and review when the bank last updated it. A cancelled feed can be set up again; for another status, MYOB advises contacting support.

Key facts about bank feeds in Australia (based on MYOB & QuickBooks guidance)

Decide what each bank line means

A bank line shows money moving, but the underlying event may already be in the books. A customer deposit may pay an invoice, a withdrawal may pay a recorded bill, and a movement between business accounts may be a transfer. Recording a new sale or expense for each can duplicate an existing entry.

For each line, find the relevant source record and decide whether to match an existing transaction, record a new one or leave the line for investigation. Compare the account, amount, direction, reference and plausible date.

Equal amounts alone do not establish a match. Check what a bank rule or suggested action will record in the product you use; some rules create ledger transactions automatically. Refer uncertain accounting or GST treatment to your accountant or BAS adviser.

Reconcile to a dated statement

Choose the account, statement closing date and closing balance. Compare the bank's movements with the entries cleared through that date, allowing for identified outstanding items. MYOB's guidance expressly requires reconciliation even when a bank feed is used.

When the calculated closing balance agrees with the statement balance, complete the reconciliation in your software. In MYOB, click Reconcile to finish and export the Bank reconciliation report for your records when prompted.

Do not use an unexplained adjustment to make a difference disappear. Identify each timing difference by transaction and check it against a later statement. Retain the dated reconciliation report or reviewed record.

Apply the statement period consistently

In MYOB, the account, statement date and closing statement balance may be filled from the latest information received through the feed. If the bank has not provided a statement balance, enter the balance shown on the bank statement. MYOB also allows reconciliation progress to be saved and a bank reconciliation report exported for records.

Resolve exceptions

For an apparently missing feed item, check the bank's processed record, feed status and screen filters before importing a replacement. If a file is needed, limit it to the missing dates and check for overlap when the feed resumes.

For a duplicate-looking item, determine whether there are two bank lines, two ledger entries or one line matched to the wrong entry. Preserve the source references and reason for the correction.

Have an accountant review a change that affects a previously approved or reported period. At close, another reviewer should be able to explain the statement balance and each outstanding item.

Check the feed list before acting

In MYOB, Banking > Bank transactions is the most up-to-date place to check transactions received through the feed. Reset filters that may be restricting the account or date range, and change the date range when looking for older transactions.