QuickBooks is an awesome accounting application that can help you manage your business accounting, track sales, handle inventory, and much more. You can add bank account in QuickBooks and download bank transactions to the program without needing to do it manually.
Moreover, automatic download of the transactions keeps the scope of typing errors at bay and saves your time and effort. There is a multitude of advantages you can get by adding a bank account in the QuickBooks application. However, if you are not sure how to commence this process, read this post until the end and follow the described procedures. Let’s start!
Step-By-Step Procedure To Connect Your Bank Account
To add bank account in QuickBooks, you need to perform the below-listed steps with the utmost care and attention:
Step 1: Start With Connecting Your Bank Account
In the first place, you need to add your bank account to QuickBooks by following the below-given points:
- Launch QuickBooks and go to the Home Page.
- Now click on Connect an Account option, which is located underneath Bank Accounts.
- Choose your bank along with the username and password used for the account.
- Click Log In after entering your bank’s accurate login credential.
Step 2: Choose A Suitable Account
Once you add bank account in QuickBooks, you will be able to see all the accounts you have at this bank.
- Here, you need to specify the business account.
- Also, you need to provide information to QuickBooks about what type of account they are.
- Next, hit Connect option, and QuickBooks will download the transactions from the last 90 days.
- To move downloaded transactions to QuickBooks, you need to move to the next step.
Step 3: Enter Downloaded Transactions
Now that you have downloaded the transactions, you can move them to QuickBooks by following the below-given steps:
- When on Bank and Credit Cards page, click on Category or Match column that allows you to sort the transactions.
- Here, you will get to see where the application tried to find categories for some transactions.
- When you click the first transaction, it opens the drop-down transaction detail.
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Step 4: Categorize The Transactions
If you don’t think that the category is suitable for a transaction, you can move it to a different category. To do so:
- Open the transaction and choose the right one.
- If it is a new one, you need to click Add on the right column.
Step 5: Choose A Payee
In the next step, you need to select your Payee by following the below-listed steps:
- Select Payee, and in case it is a new one, you need to click on +Add new.
- Type in the name of the new payee in the specified box and then click Save.
- You may also enter their details; however, this task can be accomplished later as well.
Step 6: Manage Transfers
In this section, you can manage your transfers, such as payments made in the form of a business credit card bill or loan payment, etc. To do so, you need to choose Transfer from the Deposit drop-down list.
Step 7: Split Your Transactions
You may also split your transactions in case you have purchased items from different categories using a single transaction.
- You can simply click on the Split option to get the job done.
- When you see the Split Transaction window, you may choose the suitable categories and expenditure on each category.
Step 8: Batch Action In Added Bank
Once QuickBooks categorizes your transactions correctly, you may accept all the transactions with their categories. To do so, you need to checkmark one box and hold down the Shift key, and choose the final one in the list.
- First of all, you need to choose Batch Actions.
- Thereafter, you can accept all the transaction categories by clicking on Accept.
- In case you have added a transaction to an irrelevant category, click In QuickBooks, choose the transaction, and hit Undo option.
- The transaction will now return to the New Transactions, wherein you can place it in a relevant category.
How To Setup Bank Account To QuickBooks Online?
When you add bank account in QuickBooks Online, it can help you with your bill payments. You can quickly pay the invoices. You can get it done in no time by signing into your bank and entering your bank account info into QuickBooks. In the first place, you need to set up a new bank account.
Setting Up New Bank Account in QuickBooks Online
Below are the steps that can help you in setting up a new bank account:
- First things first, sign into your QuickBooks Online account by entering your bank’s login credentials.
- Thereafter, go to Settings and select the Accounts and settings option.
- Moving ahead, select the Bill Pay option.
- Now select Bank Accounts and then select Set up a new bank.
Adding A New Bank Account
Steps to add a bank account in QuickBooks Online:
- In the first place, you need to select Sign in to your bank and then select Next.
- Then, select the correct bank to proceed further.
- Enter your username and password, and choose a suitable account you want to use.
- Fill in the following information in their specified areas:
- Account type
- Legal name
- Link to the program and select a matching Chart of Accounts account. In case there is no such account, you need to create one.
The admin user can pay the bill using the account. There are three options to get it done:
- In case you don’t want the admin to input bank information as a part of their security check, you need to check this option. In that case, they will only go through an identity check.
- If you want other admins to go through the full security check, you need to make sure that the checkbox for this option is unmarked. It includes an identity check and confirmation for bank account info.
- If not now, you may select this option later by navigating to the Bank Account details option.
- Select the Next option to confirm the bank account.
Following these steps with full attention can help you make bill payments from QuickBooks Online.
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Benefits of Adding Bank Account To QuickBooks
Adding a bank account to QuickBooks can help you with a myriad of advantages. Check below:
- You can track the inflow and outflow transactions from your bank.
- The bank transactions are automatically downloaded and then imported into the program.
- You can cut the time and effort of adding transactions manually to the QuickBooks program.
- It helps you to keep track of your transactions and keep an eye on any discrepancies.
- By adding a dedicated business account to QuickBooks, you can track your income and expenses properly.
The procedures described in this post can help you in add bank account in QuickBooks application. Once added, you can harvest the incredible benefits of the banking feature in the program. If you want further assistance, reach out to experienced professionals, and they will guide you with friendly help.