1. The Bank Feed System
Modern accounting software connects directly to commercial bank accounts via secure, encrypted data feeds. Every day, the bank automatically transmits cleared transactions—including cash deposits, card payments, and bank fees—directly into a staging area inside the accounting software.
2. Automated Matching Logic
The software uses smart matching algorithms to compare incoming bank data against transactions entered by the user:
  Bank Feed Data Entry                       Internal Ledger Records
  ====================                       ========================
  2026-07-20: Deposit $1,200  <--[MATCH]-->  2026-07-19: Sales Invoice #1042 ($1,200)

  • If the date and dollar amount match an open invoice, the software suggests a link. The user simply clicks “Approve” or “Match” to clear the item.

3. Creating Bank Rules
To handle recurring transactions quickly, users can set up Bank Rules. For example, a rule can state: “If an outgoing payment contains the description ‘Shell Oil’, automatically debit the Motor Fuel Expense account.” This automates daily cash book entries.
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