Why Importing Bank Statements into Accounting Software May Fail

Importing Bank Statements - Complete Controller

Accounting software has made bookkeeping and finances more accessible than ever. With a cluster of options to choose from, the software may be used to perform almost every one of the complex bookkeeping tasks that were once handled manually. Say goodbye to the days of difficult accounting procedures requiring a professional and say hello to a new day. A day where business owners have the availability to manage their own accounting.

Moreover, the bank auto-connect option enables one to import their bank statements into the accounting software of your choice. This option allows for all bank transactions to be updated automatically in bookkeeping records. In terms of accessibility and ease, this option takes the cake. However, there are exceptions to this import functionality, and a few are discussed in the paragraphs that follow. LasPass – Family or Org Password Vault

Access Denied

Despite a company choosing to use accounting software to ease the burden of keeping track of business finances, restrictions may be imposed on access to transactions by their bank. For instance, integration of the software with the bank’s internal system may not be allowed.

Moreover, the bank could refuse access to any business bank transactions to the software. In such a case, importing bank statements into accounting software is likely to fail. This might as well be a safeguard or internal control implemented by the bank’s management to ensure secure access and security against vulnerable accounting software.

Format Unsupported

Another reason for import failure may be due to formatting issues that have recently become a serious matter worth contemplating. The data could be in such a format that the accounting software cannot easily import it. Whether the software has the potency for adjusting to every data format may impede the seamless process of importing bank statements into accounting software. Download A Free Financial Toolkit

Therefore, the software must support the type of format that the data entails allowing the import. In addition to this, the software may not support importing bank statements for data that may be older than a few weeks. An alternate importing mechanism may have to be installed to do so.

Connectivity Issues

When importing bank statements into accounting software, the connection may not be supported at all times from every remote location. Since banks have implemented internal controls for safety purposes, connectivity of the software with the bank could be an issue. Imagine what could happen if accessing information from the bank was this easy. Therefore, the connection may be allowed for a limited amount of time and only at certain times, per the terms and regulations agreed upon with the bank.

Tax Separation

Another reason why importing bank statements into accounting software may fail is that the particular software cannot separate the tax on purchases from the transactions. Exit Advisor

Tax calculations are an essential matter for many businesses, and these must be bifurcated individually to estimate the total tax figure. Owing to variable tax rates on different products, these taxes may not be separated as intended or with complete accuracy. 

Dubious Accuracy

One of the most crucial issues relates to the accuracy of the categorization of data. Accounting software can input data with perfection. However, categorizing each transaction is not a possibility unless a criterion for each accounting element and its class has been defined in the software.

Without these, the classification of data from the bank statement may be a dubious representation by the software. Moreover, bank statements tend to provide a limited amount of information such as date, amount, and information regarding the supplier. Details are usually not recorded on statements which makes this classification even more skeptical.

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