EFT is the electronic transfer of money between bank accounts. It includes online banking transfers, BPAY, direct debits and payroll payments.
Electronic funds transfer encompasses any movement of money between accounts through electronic systems. Common types include: internet banking transfers (moving money between your own accounts or to external accounts), BPAY (Australian bill payment system), direct debits, payroll payments, wire transfers (for international payments) and real-time payment systems. EFT has largely replaced cheques for business payments due to speed, cost efficiency and security advantages. From a bookkeeping perspective, EFT transactions typically appear in your bank feed within 24 hours and need to be categorised and reconciled. Each EFT payment should include a reference or description that helps identify the purpose and recipient. For batch payments (like paying multiple supplier invoices at once), individual reference tracking is important for accurate reconciliation. SortBooks matches EFT payments to outstanding bills and invoices in Xero, using payment references, amounts and timing to automate the reconciliation process.
SortBooks automates the bookkeeping processes related to electronic funds transfer (eft) by connecting to your Xero account and using AI to categorise transactions, reconcile bank feeds and generate accurate reports. Instead of manually managing electronic funds transfer (eft), SortBooks handles it automatically with 97%+ accuracy - saving you hours every week and ensuring your books are always up to date and compliant.
A bank feed is an automatic, real-time connection between your bank account and your accounting software that imports transactions directly, eliminating manual data entry.
Bank reconciliation is the process of matching your accounting records to your bank statement to ensure they agree. It identifies discrepancies, errors and missing transactions.
A direct debit is an arrangement that allows a third party to withdraw funds from your bank account on agreed dates, commonly used for recurring payments like subscriptions and loan repayments.
Payment terms specify when payment is expected from a customer. Common terms include payment on receipt, net 7, net 14 and net 30 (meaning payment due within that many days).
Cash flow is the movement of money in and out of your business. Positive cash flow means more money coming in than going out. It is often considered more important than profit for business survival.
SortBooks handles all the complexity automatically. Just connect Xero and let AI manage your books.