Why Aren’t My Xero Bank Feeds Updating or Reconciling Properly?

Xero bank feeds provide real-time access to your business’s financial transactions, making bookkeeping more efficient. However, there are times when bank feeds may not update or reconcile properly. Here's a breakdown of the most common causes and how to resolve them:

1. Bank Feed Connection Issues

If your bank feed isn’t updating, the first thing to check is the connection status between Xero and your bank. Common causes of connection issues include:

• Bank login changes: If your internet banking password or username has changed, you must update these details in Xero.

• Two-factor authentication (2FA): Some banks require re-authentication periodically due to security protocols.

• Expired or broken feeds: Occasionally, feeds may expire and need to be reconnected, especially if your bank has updated its system or Xero has transitioned to a direct feed.

  
  

2. Delays from the Bank

Some banks only send transaction data once a day or even less frequently. Public holidays and weekends can also cause delays. If your feed is only slightly behind, it may be a routine delay on the bank’s end.

3. Manually Imported Transactions Causing Duplicates

If you’ve manually imported bank statements while waiting for the feed to resume, Xero might not automatically recognize duplicates. This can cause confusion during reconciliation.

4. Incorrect Bank Account Setup

If a bank feed is linked to the wrong bank account in Xero, transactions won’t match properly during reconciliation. Double-check that each Xero account is linked to the correct feed.

5. Outdated Xero or Bank Integration

Banking APIs and security requirements change over time. Ensure you are using the most current version of Xero’s bank feed integration. Some banks have shifted to new, more secure Open Banking feeds that require reauthorization.

What You Can Do:

• Go to Xero > Bank Accounts and check the feed status.

• Re-authenticate or reconnect the feed if prompted.

• Contact your bank or Xero support if the issue persists beyond 24–48 hours.

• Use Xero’s bank reconciliation report to identify and correct mismatches or duplicates.

Keeping bank feeds healthy is critical for accurate, real-time financial insights. Regularly reviewing connection status and reconciling promptly can prevent most feed-related problems.