Bankfeeds

Bankfeeds refer to data connections that deliver bank account transactions directly from a financial institution into accounting, bookkeeping, or personal finance software. They automate the import of deposits, withdrawals, fees, and transfers, enabling software to present up-to-date balances and activity without manual statement entry. Bankfeeds can originate through direct bank APIs, secure data aggregators, or by importing bank statements in standardized formats.

The typical workflow involves the user linking one or more bank accounts to the software and granting consent for the feed. The software then authenticates with the bank and periodically retrieves new transactions. Each transaction includes fields such as date, description, amount, and sometimes a check or reference number. The software may also attempt to categorize transactions, match them to existing records, and create new entries for reconciliation. Many systems offer rules or learning-based features to improve automatic categorization over time.

Benefits of bankfeeds include reduced data entry workload, improved accuracy in records, faster financial closes, and real-time or near-real-time visibility into cash flow. They are widely used by small businesses, bookkeepers, and accountants to streamline reconciling bank statements with accounting ledgers and to support ongoing cash management.

Security and regulatory considerations vary by region and provider. Bankfeeds typically use encrypted connections, token-based authentication, and may rely on open banking standards or bank-specific APIs. Users should assess data privacy, consent controls, potential for duplicate or miscategorized transactions, and the handling of multi-bank relationships. While generally reliable, feeds may still require periodic review to correct errors or omissions.