How to avoid pulling bank statements?

Simplifying the Process of Accessing Bank Statements

Growing my client base has been rewarding, but one consistent challenge is obtaining bank statements. Initially, explaining how to access these statements can be tricky. Once access is granted, the manual task of logging in and downloading each statement becomes quite cumbersome. Despite this, I find it essential for monthly reconciliations. Has anyone discovered a more efficient solution?

Dealing with client bank statements for monthly reconciliations can indeed be cumbersome. However, there are strategies and tools that can streamline this process, thereby reducing the burden on both you and your clients. Below are some methods and tools that could help you avoid manually pulling bank statements:

1. Use Accounting Software with Bank Feeds

Modern Accounting Software often includes a feature called “bank feeds,” which allows the software to connect directly to a client’s bank account. This connection automatically imports transactions, eliminating the need for manual downloads.

Examples: QuickBooks Online, Xero, FreshBooks, and Wave.
Benefits:
Automatic updates: Transactions are updated in real-time or scheduled intervals.
Efficiency: Saves time by reducing manual data entry.
Accuracy: Minimizes the risk of human error.

2. Client-Authorized Access

Consider establishing a standardized process for client authorization that allows you to access their bank statements directly.

Client Agreement: Formalize the access through written consent from the client. This can be done within the engagement letter or through separate authorization forms.
Read-Only Access: Request read-only access to clients’ online banking platforms. Many banks allow this level of permission and it provides security by preventing any transactional capability.

3. Use a Third-Party Aggregator

Third-party financial data aggregators can streamline the process by consolidating client banking data onto one platform.

Examples: Plaid, Yodlee, and Finicity.
How It Works: These services connect to multiple financial institutions and can pull statements or transaction data on your behalf.
Pros:
Centralized Data: Access multiple accounts and clients from one dashboard.
Security: These platforms use high-level encryption and security protocols to ensure data safety.
Integration: Many integrate seamlessly with Accounting Software.

4. Educate and Empower Clients

Empowering your clients to handle parts of this process can make your job a lot smoother:

Client Portals: Use secure client portals where they can upload bank statements directly.
Guidelines and Training: Provide clients with clear instructions or guidance on how to download and upload their bank statements.
Automated Reminders: Set up an automated reminder system to prompt clients to upload their statements by a certain date each month.

5. Scheduled Reports from Banks

Some banks offer automated report scheduling:

One response

APAdmin

26 February 2025 at 2:42 PM
Dealing with client bank statements for monthly reconciliations can indeed be cumbersome. However, there are strategies and tools that can streamline this process, thereby reducing the burden on both you and your clients. Below are some methods and tools that could help you avoid manually pulling bank statements:

1. Use Accounting Software with Bank Feeds

Modern Accounting Software often includes a feature called “bank feeds,” which allows the software to connect directly to a client’s bank account. This connection automatically imports transactions, eliminating the need for manual downloads.
- Examples: QuickBooks Online, Xero, FreshBooks, and Wave.
- Benefits:
- Automatic updates: Transactions are updated in real-time or scheduled intervals.
- Efficiency: Saves time by reducing manual data entry.
- Accuracy: Minimizes the risk of human error.
2. Client-Authorized Access

Consider establishing a standardized process for client authorization that allows you to access their bank statements directly.
- Client Agreement: Formalize the access through written consent from the client. This can be done within the engagement letter or through separate authorization forms.
- Read-Only Access: Request read-only access to clients’ online banking platforms. Many banks allow this level of permission and it provides security by preventing any transactional capability.
3. Use a Third-Party Aggregator

Third-party financial data aggregators can streamline the process by consolidating client banking data onto one platform.
- Examples: Plaid, Yodlee, and Finicity.
- How It Works: These services connect to multiple financial institutions and can pull statements or transaction data on your behalf.
- Pros:
- Centralized Data: Access multiple accounts and clients from one dashboard.
- Security: These platforms use high-level encryption and security protocols to ensure data safety.
- Integration: Many integrate seamlessly with Accounting Software.
4. Educate and Empower Clients

Empowering your clients to handle parts of this process can make your job a lot smoother:
- Client Portals: Use secure client portals where they can upload bank statements directly.
- Guidelines and Training: Provide clients with clear instructions or guidance on how to download and upload their bank statements.
- Automated Reminders: Set up an automated reminder system to prompt clients to upload their statements by a certain date each month.
5. Scheduled Reports from Banks

Some banks offer automated report scheduling:
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