Bank Feeds Add Remaining Transactions & Bank Rules 580

QuickBooks Online 2021 Bank feeds Add remaining transaction and bank rules. Let’s get into it with Intuit QuickBooks Online 2021. Here we are in our quickbooks online bank feed test file and prior presentations, we set up the bank feeds added some bank data, which then is in the bank feed Limbo in the transactions tab over here, then we’ve been taking it out of the bank feed Limbo, putting it into the Promised Land of the financial statements, we’re basically going to go through the rest of these and just add them in. And then we’ll take a look at the reconciling items for it the bank reconciliation and future presentations.


To do that though, let’s first open up our financial statements balance sheet and income statement by going to the tab up top right clicking on it and duplicating that tab will duplicate again, tab up top right clicking and duplicate another time going to go down to the reports on the left hand side start off opening up the good old P and L Profit and Loss date range change up top from a 101 to zero to 1231 to zero, run that report, closing up the hamburger holding control scrolling up just a bit to get to that one to 5%. Next tab to the left, same thing, but this time for the balance sheet going down to the reports on the left hand side, we’re going to be opening up the good old bs balance sheet,



I’m going to close the hamburger scroll up range change a 101 to zero to 1231 to zero, we’re going to run that report. Now we’re just going to add the rest of our bank feeds. So we’ve started some of the rules in the past. And now we’re just going to basically finish up adding our data. So back to the first tab. And I’m going to sort thing by the description, because that’s going to put like transactions in place. And then the bank feeds that are applicable, we’ll see here, we’ll have the bank feeds and the confirmation that we can add those and then add any other transactions that have not yet been finalized. So I’m going to go down, I’m just going to say all right, these two look good to me, these are going to audible income.



So and in the bit in the rule is applied. So I’m going to select this item, hold down shift and the next item. And that allows me to to select multiple items at one time, I’m going to confirm those, those then are going to be increasing the bank account, if I go back on over and run the report, they should be an increase to the checking account other side then go into fy go to the income statement, the income statement, we had audible income, they should be included in here now. So those have been brought in back to the profit and loss first tab once again, then the Franchise Tax Board looks like tax type of transaction, right.



So I’d say that’s not a normal type of transaction. So I’m going to go in here and looks like it looks like this is this is our going out. So it looks like an income tax payment, possibly. So I might go down and then pick this up Franchise Tax Board. Keep that up as the vendor. And it’s a vendor, not the class, not the class, this is a vendor and tab. And then this is going to go then into it would be something like state income tax. So you might have like a like an income tax line. And then federal and state possibly or state income tax and federal income tax, or just one account for income tax, I’m going to go up top and I’m going to say let’s say this is add.



And I’m going to say this is going to be an expense. And I’m going to call it an other expense or something like that other business, and I’m going to call it tax, let’s say state state tax, I’m going to save it and close it. And then let’s confirm Now we could set a rule up for this one, it doesn’t happen too often. But a rule could be applicable. Let’s go ahead and set the rule up, set the rule up. And we’re going to say we want this to be I’ll pick up the Franchise Tax Board again, I should have it already copied paste that there.



And all I want to make this a text rule contains California state tax contains our think I would want it to contain this franchise tax. And then expense is going to go to state tax and the payee should be including I haven’t always done so franchise tax. So let’s save that. We’re gonna save that and then that one, let’s apply it out. So we’re gonna say let’s apply that one. That’s going to go to decreasing the cash, other side income statement. And we’ve got the tax item down here with so here’s the state tax right there. Back to the first tab.



Now the tax is something that you might want to put actually at the bottom of the income statement. So you might want it like in other income so that you could see your you know, your pre tax net income and then your taxes. If you wanted to do that, I can right click on this tab to the right, duplicate it. And then I’ll put it into my chart of accounts. It’s like an other expense. And let’s see what that would look like. If we go to the accounting down below. Accounting down below, we’re going to be looking at the the chart of the accounts Chart of Accounts. gonna scroll down to that account we just set up which is in the expenses area.



So we’re going to go on down to this tax, and then I’m going to edit it. Let’s edit that account. And instead of making it an expense, let’s make it an other expense. And then save it and close it and say yes, back to the income statement, refreshing the tab. Now you got it down below here, which sometimes is nice to have for projection purposes, because taxes are kind of funny on on your projections of income and whatnot. So if I go back then to the first tab, this one, the rule has been applied, a rule has been applied here, it’s going to be increasing AdSense looks like a revenue account looks right, I believe. So I’m going to confirm that.



Check it out, that should increase basically a revenue account, let’s run it and check it. So that went into here, I believe. So we’re gonna say, there’s that that looks good, looks good. Go back to the first tab. Now we’ve got interest income. So let’s set this one up. This should be a somewhat standard type of transaction, interest on the bank. So let’s say this comes from the vendor, let’s just call it bank. The bank is a vendor about what the name of the bank but I’ll just call it bank, and it’s not going to go into the owner investment, this one is going to be interest income.



So interest income, we don’t have an account for it, I don’t think I’m going to add it, it’s going to be an income account. Now, again, this is something that’s not normal business operations. So you might want it into other income, showing it on the bottom of the income statement. And I’m going to call it interest earned our interest earned. I just I like interest income, I don’t know why income interest earned. And then I’m going to save it and close it. And then we should have the vendor here that looks good. Let’s go ahead then and create the rule.



The rule is not friend, it’s bank rule, money in it has a description of so we want the description but actually want the bank text here contains interest payment is that the one that should be good. And then category interest income and the payee bank. All right, that looks good, save it. And there we have it. So now these three have been going to the right place, I’m going to click the first one hold down Control, going down to the last one. And then then it does all those at one time, and then confirm roger that Roger out.



And then I’ll go back to the income statement, refresh it, running that report, notice it’s back on the bottom again. So it’s down here in other income because and once again, interest is not kind of part of our normal operations. So it might be useful to have it below. You’re kind of subcategory of net operating income. And then you’re like this is other stuff that’s not really part of my normal operating activities, which could include the income and the tax could be nice to have down there. And then we have the another tax item. So here’s a tax, this is the IRS This time though, so I’m going to say all right, the IRS, let’s just call it IRS, we’ll do that. Copy that.



And then it’s not this isn’t state tax, but this is the Fed tax, the Fed, we got to pay the Fed, this is going to be an other expense, I’ll put it on the bottom again. And we’re going to say this is an other other income of some kind. Say, it’s gonna be other miscellaneous expense, I’ll keep it here. Again, this isn’t a really important category, the category of importance is here, the name, tax and the Fed or IRS.



And then I’m going to say save it. And that looks good. So then let’s make a rule. And I’m going to make this IR s as the name money out, contains we’ll have the bank text and then Internal Revenue Service that what I thought it contained IRS, let’s say it contains IRS, because that’s what’s in the description or the contents and then expense IRS. That looks good. Let’s save it. And then I’ll confirm Roger that. Roger out. And then we’ll go to the income statement and we’ll run that again. And once again, that should show up kind of at the bottom here.



So because it’s a tax item, so we got the Fed and the state taxes down at the bottom, back to the bank rules, we got the online transfer, this is going to be a transfer, and it says this is going to owner’s equity. Let’s go ahead and keep that as now. So that we’re gonna imagine this is money going to the owner a draw. So this would be a draw, go into the equity type of account. And we might want to change it from equity, owner’s equity to pay and personal expenses. And I might, I might like, categorize it over here and call it owner. And that’s gonna be like a vendor.



And then I would like it to go to the personal, the personal, and I ended the transfers the same all the time, I might be able to keep that, I’m going to confirm that. And then I’ll go back to the balance sheet, this one’s just going to be a balance sheet type of item, running the report, it’s going to be a decrease to the checking account the other side than not hitting the income statement, because we’re imagining the money went from the business account to the personal account.



Therefore, on the business side, it should be reducing the equity directly. So here it is reducing the equity. Scrolling back up top, then we’re gonna say next item. PayPal transfer. Now PayPal is another thing that you could link with the bank rules, you could link your PayPal account, which is an intermediary account. So sometimes you might get paid by certain platforms, if you have gig work once again through PayPal.



So it would be nice if you were to link PayPal with the bank statements, and then you would have an intercompany transaction in a similar way as we had with like the credit cards, you would have like to check, it’d be like having two checking accounts here. And then when you take money out of PayPal to your personal checking account, it would be a transfer going from one to the other. And then if you have other type of transaction like expenses in a PayPal account, just like a checking account, you could track that information.



So that’ll be somewhat repetitive. So the other way you could do it is you could just if you just use PayPal to transfer your income to collect, for example, from some kind of platform, and then you’re bringing it in to to the checking account, you could just simply record it as income when you bring it into the checking account. Although the timing difference will be a little bit funny, because when you bring it into the checking account, how you want it, you want to make sure it’s close to the time period that you earned it, right.



So if it’s sitting in PayPal a long time before you transfer it to the checking account, that’s a problem, you know, but if you’re transferring it over all the time, really quickly, and you only use the PayPal account for increases, then then maybe you can you can use that system, right and just transfer it into your checking account and then add it as income to whatever source you’re getting paid from PayPal. And obviously, the more complex your PayPal account is, meaning if you’re paying a lot of stuff out of PayPal, and you’re getting a lot of different sources of income through PayPal, then you probably want of course to link PayPal, because you’re using that a lot.



If you get paid by like one source through PayPal, and then you transfer it directly to your checking account like pretty quickly, then possibly you don’t, you know, possibly you don’t need the extra the extra step, maybe you could just transfer it in and call it income from that one source. By the time it comes in here. So I’m going to call it I’m gonna call it income, I’ll hit the drop down. And we’re gonna say, let’s just call this platform income.



Assuming you know, we’re getting paid by some kind of platform that we’re doing work on, they’re paying us through PayPal, and we’re just transferring it over into our account. And so I’ll put that here too. I’m going to say this is going to be I’ll just call it platform income, new account, income account. And we’re going to call it other primary income platform income, save it, close it, then of course, we can make a rule for that. We’re gonna make a rule, and we’re gonna call it I’ll call it Hey, how rule. And then it’s going to contain the bank text that contains PayPal. And that’s it, I probably don’t need transfer or any numbers for sure.



So I’ll just say PayPal, if it contains that, apply the rule, please, for five or and then I’m going to save it. And then let’s confirm, confirm. And then if we check it out then on the checking account, hopefully we have positive note money in the checking account after that. That’s nice. And then on the income statement, we should see that popping in populate into the income statement in this new income account that we simply called platform income platform income. So there is that?



Okay, so then let’s go back on over and say what else do we have here? So the primary because these ones are being applied out with a rule, so I’m going to select this item, hold down Shift, and the next item or control, and then I’m going to confirm those two. And those are going to go into insurance. So if I go back onto my income statement, run it, check out the insurance down here, then it should be in the insurance right there, I think, right? I think it went in there.



And then go back and then back to our items. Then we’ve got the the primary another primary key item here. So let’s go into this one. And let’s say that this is like an investment let’s say this one. So I’m going to say this is an investment and so I’ll call it just primerica let’s call it primerica oh one I’m going to copy that tab new vendor save it and I’m going to put it into an asset account this time. I’m going to say this is going to be an investment in men’s so investments primerica sub account I have that there a primerica investment and then let’s set a rule for that one. Set a rule up primerica contains text just primerica and let’s keep it primerica oh one because I think we might have a couple of those.



And there it is. Let’s save it. And then and now we’ve got this rule applied. So I’m going to say those look good. holding down Shift confirm, that’s going to the balance sheet now. So just balance sheet items checking account going down the other side went into the investments here for primerica assuming it’s like stocks and bonds or something like that. And then going back up top, back to our balance sheet. And then and then we have this one, which was equipment that looks good. And these were our stripe account income that are going to our website income.



So I’m going to hit this one, and hold down shift and all the way at the bottom and confirm those. So the first one went to the expense equipment account. So we had to capitalize that because it was over $1 amount. So we capitalize that one here. The other one went to the stripe income on the income statement, I believe, some kind of income account, and we just called it like website income or something right there, I think it went into that item. So you can see we basically constructed kind of our financial statements, you know, fairly quickly with the bank feeds.



And you could see after you do this a couple times for a month or two, you could start to make good bank rules, it becomes a whole lot easier to to do this in the following months, and create your financial statements with it. Now, although you got this information, or we got it directly from the bank, we still want to do the reconciliation. So we’ll take a look at that process. Next. And the fact that we did the bank information and did the bank feeds helps us to reconcile, but the reconciliation is going to be actually the report reconciling our books to the bank. So we’ll take a look at that next time.

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