Accounting Software's Worst-Kept Secret Is Out…
Since 2020, the Australian Government and accounting software providers have been quietly working on something called Open Banking.
Well… it's here.
Last month, QuickBooks Online (QBO) officially launched Open Banking in Australia.
What Is Open Banking?
Someone clever finally asked the obvious question:
If my online banking updates throughout the day, why doesn't my bank feed in my accounting software?
Open banking is the answer.
Traditionally, bank feeds in accounting software update once a day (usually overnight). With open banking, your bank feed updates in near real time.
That means if a customer pays you at 10am, you'll see that payment in your bank feed almost instantly.
Why Does This Help Me?
If your business requires payment upfront, this can speed up your processes by one or even two business days.
For bookkeepers like me, it's a game changer. I can now tell business owners their true bank balance:
- "You have $X available because wages, super, and suppliers have just been paid."
- Or advise what can safely be paid without needing access to online banking.
Everyone works from the same, up-to-date information.
How Do I Get It?
At the moment, open banking is only available in QuickBooks Online.
While MYOB and Xero were involved in lobbying, QBO currently holds the government's security seal of approval as an Accredited Data Recipient—which is why it's live there first.
So, right now, you'll need to be a QBO customer to access it.
If open banking is the reason you're thinking about switching to the green side of the fence, I'm happy to say I've always been a fan. And yes—there are plenty of other QBO features that make the move worthwhile (and have you seen how little QBO actually costs?).
What Will I See in QBO?
If you're already using QBO, you may notice an alert on your Home screen that looks something like this.
At the moment, open banking is available with the Big Four banks only:
- CBA
- ANZ
- Westpac
- NAB
If you're with another bank, you may need to wait a little longer.
What Do I Need to Do?
If you see the message, follow the prompts. Each bank's process is slightly different, but essentially you'll be linking your bank account to the Open Banking feed.
This must be done by someone who is authorised on the bank account.
For security reasons, banks require this permission to be renewed once a year, which is a good thing—it ensures everyone is doing the right thing with your data.
Want to Learn More?
QBO has put together a great set of articles explaining open banking here:
https://quickbooks.intuit.com/au/blog/product-update/what-is-open-banking/
And the Best Part?
It's free.
So… what are you waiting for?
Green up your business life. 💚
