Setting up Bank Feeds in QuickBooks Online
Why Use Bank Feeds?
In prior posts, we’ve discussed what a cash flow forecast is and why you need one—before we go deep into how to set up bank feeds—let me first clarify why they are so damn important! In QuickBooks Online, connect bank account to quickbooks is a capability which allows automatic importing of your bank and credit cards transactions into the application. Here’s why you should consider using bank feeds
Real-Time Accuracy: Forget about errors in manual data entry. Bank feeds make sure your numbers stay accurate.
Time-Saving: Say goodbye to manual transaction matching. They automate this process which saves you from wasting hours doing it manually.
Better Insights: Act on real-time financial data to determine the health of your business.
Preparing Your QuickBooks Account
Ensure that your QuickBooks Online account is correctly configured before connecting your bank account. Here’s what you need to do:
Subscription: Make sure you have an active QuickBooks Online account. They won’t let you create bank feeds with trial accounts.
Access Rights: Confirm that you have the proper permissions in QuickBooks to establish bank feeds. Typically, this would need admin level credentials.
Updated Software: Make sure you have the latest version of QuickBooks Online software. Compatibility issues can arise due to outdated software.
Gathering Required Information
To establish a connection between your bank and QuickBooks Online, you’ll need to gather some essential information:
Bank Account Details: Make sure you have your bank account number and routing number handy. You also require the password for your internet banking.
Account Type: You should know whether you’re looking at a checking account, a savings account, or a credit card account (in other words).
Bank’s Website: Go to your bank’s official site. The State Bank of India is one such example. This is what you will use to verify and establish the link.
Connecting Your Bank Account
Okay, let’s dive into the juicy bits — connecting your bank account to QuickBooks online. Follow these steps:
Log In: Log into your QuickBooks Online organization account with your admin login.
Dashboard: After logging in into your account you will see the Dashboard.
Banking Tab: Click on the “Banking” tab or “Transactions” menu. This is where you’ll set up your bank feeds.Connect Account: Find “Connect account” or “Add account”underneath and select it.
Search for Your Bank: Enter your bank’s name in the search bar. You can choose from the list of banks supported by QuickBooks Online. Select yours.
Enter Account Details: Enter your bank routing and account numbers when prompted. Do so accurately.
Log In to Your Bank: Once directed to your banks online banking portal via QuickBooks online, click “Add account” and then choose the account type from the drop-down list, ensuring that you’ve selected the correct one that is connected with your Business checking account, and proceed to continue. Sign in on your bank site, and follow the guide for connecting your account.
Verifying Your Bank Feed
When you link your bank account to QuickBooks Online, the online software starts bringing over your transactions. Make sure the connection is working and that your transactions are being sync’ed. Here’s what to do:
1. Review Transactions: Review transactions from QuickBooks online. Check that they match your bank statement.
Sync Frequency: Transactions updated at varying speeds, depending on your bank and QuickBooks Online. Some update every single day, some might take several days to share an update.
Reconnect if Needed: If there are any missing transactions or if you have noticed something go wrong, you’ll need to reconnection bank account.
Understanding Bank Feed Transactions
To successfully understand where you’re spending money in QuickBooks Online you need to see how the bank entries are categorized. QB will categorize transactions for you but you must fix what’s there first. Here’s a quick overview:
Uncategorized Transactions: This is for transaction entries that Intuit hasn’t classified yet with QuickBooks. You’re going to have to add them as an account — which means you have to do some work first.
Rules: With QuickBooks, you can choose what category to use on current deals, QB will then learn it and apply what you have chosen for future transactions. It will save you effort in the end.
Categorizing Transactions
To keep your financial records organized, you’ll want to categorize your transactions accurately:
Review Transactions: Often go through your bank transactions from the bank feed in QuickBooks Online.
Assign Categories: Click the Uncategorized Transactions to categorize your purchases.
Set Rules: For repetitive transaction types, create rules for the automatic tagging of future ones.
Reviewing and Reconciling
Reviewing your bank statements and reconciling accounts on a regular basis is essential for a proper accounting of your finances. Here’s how to do it:
Reconciliation: From QuickBooks Online go to Reconcile.
Select Accounts: Now select the account you want to sync up.
Match Transactions: Compare your QuickBooks transactions with your bank statement. Ensure they align.
Make Adjustments: correct if you see anything wrong and update your QuickBooks Online accordingly.
Conclusion
For anyone seeking to take the drudgery out of financial record-keeping, integrating QuickBooks Online with your bank account makes sense. Quickly and safely gain insight into your financial life whenever you need it. Just do it — hook up your bank account to QuickBooks and be on top of your money once and for all!
Frequently Asked Questions (FAQs)
1. What are bank feeds in QuickBooks Online?
Bank feeds in QuickBooks Online allow your bank and credit card transactions to automatically sync with your accounting software. This streamlines the process of recording your financial transactions.
2. Is it safe to connect my bank account to QuickBooks?
Yes, it’s safe to connect your bank account to QuickBooks Online. QuickBooks uses encryption and follows industry-standard security practices to protect your financial data.
3. Can I connect multiple bank accounts?
Absolutely! QuickBooks Online allows you to connect multiple bank accounts and credit cards, making it easy to manage all your finances in one place.
4. How often are bank transactions updated in QuickBooks?
The frequency of updates depends on your bank. Some banks update transactions daily, while others may take a few days to sync with QuickBooks Online.
5. What if I spot an error in my bank feed?
If you notice an error in your bank feed, you can easily correct it within QuickBooks Online. Review the transaction, make necessary adjustments, and save your changes.
