One of the initial time saving benefits you’ll experience with Xero is bank transactions feeding into Xero via a bank feed. Hamish Edwards’ one of the original founders of Xero describes bank feeds as ‘the secret sauce of online accounting solutions’. Bank feeds work by linking the business’s bank, credit card and PayPal accounts to Xero. Transactions that happen within these accounts feed into Xero either live or batched overnight depending on the financial institution.
Once the transaction has arrived in your software it needs to be coded. However once a transaction has been coded once, frequently you’ll find future similar entries recognise the coding rules and you’ll just need to confirm the suggested transaction. For example once you have allocated an account and tax code to a bank charge transaction all future bank charges with the same description will automagically suggest to be coded the same way. Of course if necessary the auto-suggested coding can be overridden.