Bank feed
A bank feed is a live, direct connection between your bank account and Xero that automatically imports each transaction as it clears, removing the need to upload statements manually and giving you an up-to-date ledger throughout the month.
A bank feed pulls transactions directly from your bank into Xero using a secure, read-only connection — typically via Open Banking or a direct integration your bank has agreed with Xero. Each time a payment clears (usually within a few hours), Xero adds a new bank statement line to your account register. No CSV exports, no copy-pasting, no missed lines.
Why it matters for reconciliation
The feed is the raw material that reconciliation works on. Once a line lands in Xero, you match it to an invoice, bill, or spend-money transaction to record why the money moved. Xero’s built-in AI, JAX, handles around 80% of clean lines automatically by recognising patterns from past matches. Bank rules cover routine repeating items — monthly rent, payroll, standing orders — so familiar lines are categorised the moment they arrive.
The feed only brings in what cleared your bank. A £2,400 invoice you raised last Tuesday does not appear in the feed until the customer actually pays. That distinction matters for month-end: an apparently clean feed does not mean all income has been recognised.