Bank Integrations Overview

#Integration capabilities

Bank integrations provide:

• Transaction feeds: Automatic daily or twice-daily transaction downloads
• Multi-currency accounts: Support for accounts in different currencies
• Balance updates: Account balance visibility
• Reconciliation support: Transaction matching and reconciliation
• Multi-bank support: Connect accounts from multiple financial institutions
• Cash forecasting: Use transaction data for cash planning

This automates cash posting and reconciliation.

#Supported banks

Light connects to banks through four feed providers:

• GoCardless (Europe and UK): Covers European and UK banks, including Revolut, Wise, Starling, and traditional banks
• Plaid (US): Connects to thousands of institutions in the United States
• Stripe: Imports Stripe balance transactions (requires the Stripe integration)
• AMC (host-to-host): Direct bank connections for banks such as HSBC, J.P. Morgan Chase, Nordea, and SEB — setup typically takes 2-3 months and your bank may charge a fee

Not all banks support all providers. If your bank isn't available through a feed provider, you can upload transactions manually via CSV or contact Light about host-to-host integration support.

#Setting up a bank connection

To connect a bank account:

1. Navigate to Settings (gear icon) → Bank accounts
2. Add the bank account, then click Authorize Feed
3. Search for your bank name
4. Click your bank (you're redirected to the bank's secure login)
5. Sign in to your online banking (Light never sees your password)
6. Authorize Light to access account information
7. Select which accounts to connect
8. Confirm connection is active in Light

Light then begins receiving daily transaction feeds.

Note: Only users with the Company admin role can manage bank connections.

#Transaction feed frequency

Bank feeds sync on a set schedule:

• Daily: Once per day (the default for most banks)
• Twice a day: Available for certain banks and account types

You can also trigger a manual sync from the account details by clicking Sync Now without waiting for the scheduled sync. Daily syncing is sufficient for most reconciliation needs.

#Transaction matching and posting

When bank transactions sync:

1. Light receives transaction detail: date, amount, description, counterparty
2. Light attempts to match to existing GL transactions:
   • For AR: Match to customer payment to invoice
   • For AP: Match to vendor payment to bill
   • For other: Match to journal entry
3. If match found: Transaction status updates to "Matched"
4. If no match: Transaction appears as "Unmatched" pending review
5. You can manually match unmatched items

Light uses amount, date, and description for matching.

#Bank reconciliation

Reconcile GL accounts to bank statements:

1. Navigate to Accounting → Bank reconciliation
2. Select bank account
3. Light displays:
   • GL balance (from Light ledger)
   • Bank statement balance (from bank feed)
   • Outstanding items (in Light but not on statement, or vice versa)
4. Identify reconciling items:
   • Pending deposits (recorded in Light, not yet at bank)
   • Outstanding checks (recorded in Light, not yet cleared)
   • Bank fees (on statement, not yet recorded in Light)
5. Complete reconciliation
6. Mark as "Reconciled"

Monthly reconciliation is standard practice.

Good to know: Bank reconciliation confirms GL accuracy and identifies discrepancies early.

#Bank fee handling

Banks charge monthly service fees, NSF fees, etc:

1. Bank fee appears on bank statement
2. Light bank feed syncs the fee
3. Light prompts you to record the GL entry
4. You accept the fee and specify GL account (bank charges/fees)
5. Light posts automatically

This ensures bank fees don't cause reconciliation discrepancies.

#Handling deposits in transit

When you deposit a check or transfer:

1. You create a GL entry recording the deposit
2. Bank takes 1-2 days to post
3. Bank transaction appears in next day's feed
4. Light reconciliation shows item as "Pending" until bank posts
5. Once bank posts, mark as "Cleared"

Light tracks pending items separately until cleared.

#Outstanding check management

When you write a check:

1. You create a GL entry recording the payment
2. Check is outstanding (issued but not yet cleared)
3. Bank shows as pending withdrawal
4. When recipient cashes check, bank posts the withdrawal
5. Light reconciliation matches to your GL entry
6. Check moves from outstanding to cleared

Light maintains outstanding item tracking.

#Multi-currency bank accounts

For accounts in different currencies:

1. Connect accounts in each currency
2. Light maintains separate GL accounts per currency
3. Bank feed syncs in account currency
4. Light shows balances in each currency
5. FX translation happens only in consolidation

This preserves currency perspective.

#Cash position reporting

Monitor cash across all accounts:

1. Navigate to Planning & Reports → Reports
2. View:
   • Balance in each bank account (by currency)
   • Total cash across all accounts
   • Recent activity in each account
   • Forecast based on pending transactions
3. Real-time visibility into liquidity

This supports cash management and forecasting.

#Handling transfers between accounts

When you transfer between your own accounts:

1. You create GL entries showing withdrawal from one account and deposit to another
2. Bank feeds show both transactions
3. During reconciliation, match each bank transaction to its corresponding GL entry

Matching both sides prevents double-counting internal transfers.

#Troubleshooting bank connections

Connection failed or expired: Bank connections expire periodically and show an Expired status. Renew the connection from Settings (gear icon) → Bank accounts and re-authorize with your bank; verify online banking credentials and check if your bank requires additional authentication.

Transactions not syncing: Check sync status in Light, verify bank account is configured for export, contact bank if feed not updating.

Duplicate transactions: Light automatically marks duplicated feed transactions as Excluded so they don't affect reconciliation. If you still see duplicates (some banks send corrected and original versions), exclude them manually.

Missing transactions: Check date range of feed, verify transaction hasn't been filtered out, contact bank if transaction should have appeared.

Reconciliation discrepancies: Review GL entries vs. bank statement, identify timing differences (pending items), verify all fees are recorded.

#Bank feed limitations

Be aware of bank feed limitations:

• Transaction history depends on the provider: GoCardless connections to UK banks are limited to 90 days, and Plaid imports 90 days by default (up to 730 days for some institutions)
• Some smaller transactions may be batched/grouped
• Holiday processing may delay posting by 1-2 days
• Wire transfers show in some banks, not others

Document your bank's specific feed format.

#Exporting bank reconciliation

Archive reconciliation records:

1. Complete reconciliation in Light
2. Click Export
3. Download as PDF or Excel
4. Includes GL balance, bank balance, reconciling items
5. Sign and archive

This creates evidence of reconciliation for auditors.

#Multi-bank aggregation

For organizations with accounts at multiple banks:

1. Connect all bank accounts in Light
2. Light receives feeds from all banks
3. Cash Position report shows consolidated cash across banks
4. Each account reconciled separately
5. Consolidated cash visibility

This consolidates multi-bank cash management.

#Related articles

• Integrations overview
• Stripe integration
• Airwallex integration
• Cash flow statement