You might find yourself being asked by your bookkeeper to login to Xero and renew the bank connection, and it might seem often, especially if you have multiple bank accounts.
Why do I have to renew the bank connection in Xero?
The reason the bank connection needs to be renewed every 90 days is due to the new EU standards that were enforced on the 14th March 2020. This new banking practice is referred to in the UK as ‘Open Banking’ and it changes the way third parties access bank data.
Xero uses a platform called ‘OpenWrks’ to connect your bank account to Xero on a live feed. This feed enables us to see your bank activity and keep on top of your accounts with our daily bookkeeping tasks.
Why can’t you do it for me?
You, as the bank account holder, have to renew the bank connection every 90 days, a requirement of the new open banking standards, to maintain the access between your bank and Xero.
We are unable to login to your online banking account on your behalf as you need to enter sensitive information which we are not privy to.
What if I don’t renew the bank connection?
If the connection is not renewed, then the live feed between the bank and Xero stops and any new transactions will not show in Xero. This makes it difficult to keep your accounts in the best possible condition as we cannot see your bank account activity.
As a result, it might mean we are late to notice an error such as a duplicate payment to a supplier. We would not be able to check if a payment from a customer has been received. There is also a chance that transactions may be missing in Xero after the feed is reconnected; in this instance we would require a bank statement to check that the bank and the Xero balances agree.
How do I renew my bank connection again?
To renew your bank connection you need to login to Xero. Once you are logged in, go to the accounting tab along the top bar > bank accounts > click the ‘renew bank feed’ button for the account that needs to be renewed.
You will need the following information to hand:
Account details
- Your account name, number, and sort code
- Your account balance
- Your card number
Account transactions
- Details of your transactions
If you need to renew more than one account you will need to repeat this process for each account.