Due to the new EU Open Banking changes, coming into force 14 September 2019, some Xero bank feeds are changing.
For more info on Open Banking in general, check out our blog here. Otherwise please read on to see what’s happening, which banks are affected, and what you need to do.
There are huge benefits in moving to Open Banking bank feeds including:
- Added security
- Automatic bank feeds into your Xero bank account
- No more manually refreshing your bank feeds
- Easy bank reconciliations in Xero
- The new bank feeds will be free
TL;TR
In a rush? Check out Xero’s video here, which explains it all.
1. What is Open Banking
Open Banking means you can choose to share your bank account information securely and electronically with companies like Xero.
Check out our Open Banking blog for more info.
2. Why the changes?
It was designed to encourage competition in the banking industry, giving you more choice, as well as greater control of your data and how it’s used.
3. Who is affected by the Xero bank feed changes?
Anyone with a UK Barclays account, or connecting their UK or Euro bank to Xero with a Yodlee feed (where you have to manually refresh your feed).
You can check out Xero’s list of affected bank feeds, and if you’re our client, we also have you covered.
4. When will the changes happen?
14 September 2019 is the date that existing Barclays and Yodlee feeds will be switched off, although some banks are as soon as 5 September.
5. How do I know if I’m affected?
Xero has a list of all bank accounts affected and we are contacting our clients directly to let them know if they’re affected and what they need to do.
6. What do I need to do?
When the new bank feed is available for your bank account, Xero will notify you on the Xero dashboard.
You can then follow Xero’s instructions, or follow these steps to activate your new bank feed.
If you already have a direct bank feed (eg with HSBC or Natwest) you don’t have to do anything.
We are here to help, so we can talk you through the steps, or just be here to answer any questions.
7. What if there’s no new bank feed?
You’ll need to manually import statements for the time being, and until open banking bank feeds are available.
Check out Xero’s guidance to manually import your statements, and don’t forget, we’re here to help.
8. How long do the new bank feeds stay connected?
You’ll need to reconnect every 90 days, for security purposes, but Xero will notify you when the time comes, and let you know what to do.
9. What happens if I don’t connect to the new open banking direct feed, or miss the deadline?
Your bank feeds will stop importing when you try to refresh them. You can still connect to the new bank feeds, but just be careful when you do, to check for any gaps in transactions between your old feeds stopping, and your new feeds starting.
10. What else do I need to know?
There is loads more info over on Xero’s Open Banking Resource Centre
One of the main points to be aware of is that some of your Bank Rules may not work, due to how your data is being pushed across to Xero.
More guidance on Bank Rules here but the best way around this is to update all your bank rules at Step 1 of the Bank Rule to look at “Any text field”.
OK so that’s a lot to take in! Your first steps:
- See if you’re affected by checking Xero’s bank list
- Check out Xero’s video which explains everything
- If you’d rather have a good read, download Xero’s guide for small businesses
- Check out Xero’s FAQs, which answer way more questions than we have been able to in one blog!
- Get in touch with us to work through your new open banking connections or to get help on manually importing feeds.
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We’re always here to help!
Thanks for reading.
Sharon
Kinder Accountants are an approachable cloud-savvy firm of accountants based in Herefordshire but supporting businesses on the move.
We specialise in Security/Technology, Design and Indie Hospitality businesses.
01432 273400
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