Myths debunked: How does your bank and accounting software work together?
Small Business Guides
5 min read
As a small business owner, you’re always on the lookout for new tools that can help your business save time and money. There’s lots of new technology available, but the simplest tool is one that you probably already have - all you need to do is connect your bank to your accounting software. This connection is free and available today if you have a DBS business bank account, and a trial or paid subscription with Xero online accounting software.
But what does this connection really do?
Your transactions in your DBS account will be automatically sent through this secure connection into Xero, every day*. This means you can match your data in your bank account to the data in your online accounting software - this process is called bank reconciliation.
You can also send bill instructions from Xero directly to DBS IDEAL (DBS' internet banking platform), for authorisation. This saves you an additional step of manually entering the same data twice (once in your accounting software, and another time in internet banking).
Why is this important? And is my data secure when I make the connection? We’ve addressed common misconceptions about the DBS-Xero connection below.
*Every Tuesday to Sunday
Myth 1: Connecting my bank to my accounting software means other people can view my data
It’s a common myth that connecting your bank to your accounting software means that more people can access and view your data. This is untrue. The only users who can access your accounting data are the users you allow to do so in Xero.
Similar to banks like DBS, Xero is committed to the privacy of our customer’s data and provide multiple layers of protection in Xero. Learn more about security at Xero here.
Myth 2: Connecting my bank to my accounting software means my data gets sent from Xero to the bank
The DBS-Xero connection allows DBS IDEAL to send your banking data into Xero only for the accounts that you have authorised. If you have a DBS Singapore Dollar account connected, you can also send payment instructions from Xero to DBS. No other data gets sent back from Xero to DBS.
Myth 3: Connecting my bank to my accounting software is difficult to do
As long as you have a DBS business bank account, and a free trial or paid subscription with Xero online accounting software, you can authorise the connection in just minutes. Your transactions from DBS will start to send automatically to Xero within 24 hours (of authorisation). See how easy it is to set up the DBS-Xero connection with this step-by-step video below:
35% of Singapore small and medium businesses suffer from cash flow-related issues - this means these businesses struggle to know how much money they owe, and how much money is owed to them.
Myth 4: Connecting my bank to my accounting software costs me money
The DBS-Xero connection is free! All you need is a DBS business bank account, and a free trial or paid subscription with Xero online accounting software.
Myth 5: Connecting my bank to my accounting software doesn’t really help my business
35%* of Singapore small and medium businesses suffer from cash flow-related issues - this means these businesses struggle to know how much money they owe, and how much money is owed to them. In order for you to run your business properly and make a profit, you need to understand how much money your business has to spend.
Before, in order to carry out bank reconciliation for your business, you’d either have to match your bank statement to your accounting records line-by-line, or download your bank statement digitally and upload it to your accounting software.
The DBS-Xero connection makes it all easier but connecting your bank account and accounting software securely, so the transactions get sent automatically into Xero every day**. This means your business’ finances are up-to-date each day, giving you a clear view of your money so you can make the best-informed decisions.
*SME Development Survey, 2017, **Every Tuesday to Sunday
Find out more
Learn more about the DBS-Xero connection, and how you can get this set up within 24 hours.Find out now