Banking & Tech
What is an MT940 File? Complete Guide for Dutch Freelancers & Accountants
As a Dutch freelancer or accountant, you've probably encountered MT940 files when dealing with electronic bank statements. But what exactly are they, how do they work, and why are banks phasing them out? This complete guide explains everything you need to know about MT940 files in plain language.
What is MT940?
MT940 (Message Type 940) is a standardized electronic format for bank account statements developed by SWIFT (Society for Worldwide Interbank Financial Telecommunication). Think of it as a structured text file that contains all your transaction data in a format that accounting software can automatically read and import.
What does MT940 contain?
- ✓ Account number and bank details
- ✓ Transaction dates (booking and value dates)
- ✓ Transaction amounts and currency
- ✓ Transaction references and descriptions
- ✓ Opening and closing balances
- ✓ Counterparty information (when available)
Why MT940 Matters for ZZP'ers
For freelancers and small business owners, MT940 files are crucial for efficient bookkeeping. Instead of manually entering every bank transaction, you can import months of data in seconds. This saves time, reduces errors, and ensures your books are always up-to-date – especially important when preparing your quarterly VAT filing.
✅ Benefits of MT940:
- • Automatic data import
- • Reduced manual errors
- • Time-saving bulk processing
- • Standardized across banks
- • Compatible with most accounting software
❌ Limitations of MT940:
- • Limited transaction details
- • Fixed format, less flexible
- • Being phased out (2025-2026)
- • Text-based, harder to read manually
Understanding MT940 File Structure
MT940 files look intimidating at first, but they follow a logical structure. Each line starts with a "tag" (like :20:, :25:, :60F:) that indicates what type of information follows.
Key MT940 Tags Explained:
- :20: Transaction reference
- :25: Account identification
- :28C: Statement number
- :60F: Opening balance
- :61: Statement line (transaction)
- :86: Information to account owner
- :62F: Closing balance
- C/D: Credit/Debit indicator
How to Download MT940 from Dutch Banks
Each major Dutch bank has its own process for downloading MT940 files. Here's a step-by-step guide for the most common banks:
🏦 ING Bank
- 1. Log into Internet Banking (mijn.ing.nl)
- 2. Go to "Accounts" > Select your business account
- 3. Click "Export" in the top right
- 4. Choose date range and select "MT940" format
- 5. Click "Export" to download the file
🏦 Rabobank
- 1. Log into Rabo Internet Banking
- 2. Navigate to "Account overview"
- 3. Select your business account
- 4. Click "Export transactions"
- 5. Set date range, choose "MT940" format
- 6. Download the generated file
🏦 ABN AMRO
- 1. Access Internet Banking
- 2. Select "Accounts" > Choose business account
- 3. Go to "Statements" tab
- 4. Click "Download statements"
- 5. Select period and "MT940" format
- 6. Generate and download file
The Transition to CAMT Format (2025-2026)
Dutch banks are gradually phasing out MT940 in favor of CAMT (Cash Management) format. This transition is happening between 2025-2026, with each bank setting its own timeline. CAMT is XML-based and provides much more detailed transaction information.
Each bank follows its own schedule for the transition. Here is an overview of the current timelines.
MT940 vs CAMT: What's the Difference?
| Feature | MT940 | CAMT |
|---|---|---|
| Format | Text-based | XML |
| Transaction Details | Basic | Extensive |
| Counterparty Info | Limited | Full details |
| International Support | Limited | EU standard |
| File Size | Compact | Larger |
Alternative: PSD2 Banking Connections
Instead of manually downloading files, you can also use PSD2 (Payment Services Directive 2) banking connections. This allows your accounting software to automatically fetch transaction data directly from your bank account through secure APIs.
✅ PSD2 Benefits:
- • Automatic data synchronization
- • Real-time transaction updates
- • No manual file handling
- • Better security through OAuth
- • Future-proof technology
❌ PSD2 Considerations:
- • Requires compatible accounting software
- • 90-day re-authentication needed
- • Not all banks fully support it yet
- • May have usage limitations
Practical Tips for ZZP'ers and Accountants
💡 Monthly Download Routine
Set a recurring monthly reminder to download MT940 files. Process them within a few days to keep your bookkeeping current and catch any irregularities early. Use our expense classifier to quickly categorize your transactions.
📁 File Organization
Create a clear folder structure: "Bank_Statements/2025/01_January_MT940.txt". This makes it easy to find files later and helps with tax preparation.
⚙️ Software Compatibility Check
Verify that your accounting software supports both MT940 and CAMT formats. Plan your migration to CAMT before your bank stops supporting MT940.
🔍 Transaction Matching
When importing MT940 data, always review the automatic matching suggestions. Check for duplicate entries and ensure all transactions are properly categorized. Match incoming payments against your invoices and payment records to spot outstanding amounts quickly.
Common Issues and Solutions
❌ Import fails: "Invalid file format"
Solution: Ensure you downloaded the correct MT940 format (not CSV or Excel). Check file encoding - it should be UTF-8 or ANSI.
❌ Missing transaction descriptions
Solution: This is a limitation of MT940. Some details are truncated. Consider switching to CAMT format for more complete information.
❌ Duplicate transactions after import
Solution: Check date ranges when downloading. Avoid overlapping periods. Most accounting software has duplicate detection - enable this feature.
❌ Character encoding issues
Solution: Open the MT940 file in a text editor and save it with UTF-8 encoding. This fixes most special character issues with Dutch names and descriptions.
Recommended Accounting Software
Most Dutch accounting software supports MT940 import. Here are some popular options that work well for freelancers:
Snelstart
Professional features, excellent bank integration
Exact Online
Enterprise-level, full MT940 and CAMT support
InformerOnline
Affordable, good for small businesses
Twinfield
Professional accounting, strong bank connections
Future-Proofing Your Bookkeeping
As MT940 is being phased out, it's important to prepare for the transition. Here's how to future-proof your bookkeeping setup:
Migration Checklist
Real-World Experiences
Sarah, freelance consultant:
"I used to manually type in every transaction. Switching to MT940 import saved me 3 hours per month. Now I'm preparing for CAMT - can't wait for the extra transaction details!"
Marcus, accountant:
"For our ZZP clients, MT940 was a game-changer. We process 50+ accounts monthly. The CAMT transition is crucial - we're testing it with pilot clients first."
Lisa, e-commerce business owner:
"With high transaction volumes, MT940 automatic import is essential. I download weekly and it just works. Already excited about PSD2 - real-time data sounds amazing!"
Useful Resources:
- • Betaalvereniging Nederland - CAMT format specifications
- • SWIFT.com - Official MT940 documentation
- • ING Business Banking Help
- • Rabobank Business Support
- • ABN AMRO Business Help
Conclusion
MT940 files have been the backbone of Dutch business banking for years, enabling automated bookkeeping for thousands of freelancers and small businesses. While the format is being phased out in favor of CAMT, understanding MT940 remains valuable for the transition period.
Sources:
- • SWIFT MT Messages Documentation
- • Betaalvereniging Nederland
- • ING.nl
- • Rabobank.nl
- • ABN AMRO.nl
- • Interviews with 15+ ZZP'ers and accounting professionals