QuickBooks Online 2020 to setting up bank feeds, get ready because it’s go time with QuickBooks Online 2022. Here we are in our bank feed practice file, we set up with a 30 day free trial holding down control scrolling up a bit to get to the one to 5%.
We’re currently in the homepage otherwise known as they get things done page. In the business view, as compared to the accounting view,
if you want to change to the accounting view, it’s something you can do by going to the cog up top switch to accounting view down below, we will be toggling back and forth between the two views,
either here or by jumping over to the sample company file currently in the accounting view, back to the bank feed practice file, we’re going to be looking into setting up the bank feeds. So there’s a couple ways that you can do it.
No, you might think that the first thing you would do is go into the banking section in this business view here. But this is where they have some other stuff that they’re mainly looking at,
that are related to the bank, including meet your money, goals, pay and get paid your way, and so on and so forth, some of which would be added on type of features, like upselling, some kind of things within QuickBooks, which would be related to the banking.
So we’re going to go down to here, you could go down to the bookkeeping area and set up the bank feeds by going to the transactions up top and then go into your banking section.
And then down below, you got to connect the account, that’s one way you can do it. Another way you might think about it is to say let’s go into the Chart of Accounts, and then possibly add a new account, which would be an account that typically has the type related to our bank feed.
So that would be a checking type of account, or a credit card type of account, because those are the types of accounts that typically have financial financial institutions related to them.
So if you were to make a new account, you could, you would make sure to set them up as an account that has a financial statement related to it like like a type of account, which would be the cash account, or the credit card account.
Now as you do that, I would not be in the account the business view, but rather the accounting view, because it’s a little bit easier to add accounts in that way on the accounting view. Now, if you were in the accounting view,
you could then go down to the same areas would be in in other words, the the banking section on the left hand side, that’s where you’d be actually looking into your bank transactions in the banking information up top in the sample company, the account has already been set up.
So you’ve got some bank fee transactions that are in place, we haven’t set them up, so they’re not in place at this point in time.
Or you could go down to your Accounting tab below, where you would then have your chart of accounts. And you could possibly set up a chart of accounts, this being the type of account that would typically be linked to the bank feeds. So you might set up the account first.
So we’re going to go back on over to this side, open up the left hand side on the hamburger, let’s go to the transactions up top. Now we’re not going to actually fully connect this time,
we’re just going to give an example of how to connect this time. Usually the connection itself is actually the easiest component of the bank feeds process connecting the account can take a little bit of work in terms of the financial institution can be a little bit different from institution to institution.
But the actual connection is usually not that difficult to set up. What you want to consider with the connection is how much data do I want to be pulling in? Do I want to be pulling in, say one month worth of data, one year’s worth of data? What’s my cut off?
Do I already have data in the system so that you can make sure that you got the right cut off to get the amount of transactions that you want to be pulling in from the bank feeds.
Also note, there are in essence, two ways that you can set up bank feeds or get information from the bank that’s going to go into your accounting system. One is to connect directly to the bank, which is a little bit easier typically, but you might not be able to go as far back in time.
And the second is to go into your financial institution, download the financial transactions, and then upload them into QuickBooks, which is an option that might be useful,
especially for the first time that you’re setting up the bank feeds because you may not be able to go as far back in time if you need like a whole year’s worth of data or multiple years worth of data. And then it might be easier, you might be able to get more of that data from the financial institution directly.
So those are the things to keep in mind. We have to connect account or upload transactions here so the connecting to the account obviously would be the physical connection that would allow us to connect and pull the information.
Let’s take a look at the upload transactions first just to consider it says here manually upload your transactions, open a new tab and sign into your online bank account. Export your bank statement in as dot c sv.qf X or QB O dot o f x or TXT format. Now, these are common types of formats and possibly not common types for, but for uploading their common types of format.
Normally, the easiest one would possibly be a.qb. Oh, that’s not a cubio data file, QuickBooks Online, in other words, but rather it’s a data file, very common in most financial institutions.
Now, if you don’t have that one, then oftentimes, you’ll be using a dot CSV, which is kind of like an Excel document with stripped of all the Excel formatting within it. So you can use those basically to upload, upload your bank statement, here.
So number three, upload your bank statement, drag and drop or select files. And then on the right hand side, bring in transactions automatically.
This is where you have direct linking of the accounts to save time on entering bank transactions.
This is trying to get you back into that automatic link process. Instead of using the upload manual upload process,
let’s close this back out, and then go into the tab to the left, which is the connecting to the bank, which would be the direct connect to the bank. So linking to your bank account would go through this process.
Now note the accounts down below that have some common financial institutions, these would be financial institutions we would have our banking with or possibly our credit card, as well, that we can do our connection with, you can also then show more down below here.
And we can basically also just type in the financial institution, so bank, something, and you can have a whole bunch of other banks,
a lot of different banks there, the number of banks that they’re being able to pull in even banks that aren’t the most, the largest banks are still in here. So they’re getting a pretty large bank of banks in their system, a big bank of financial institutions,
credit cards, also like American Express, American Express, you can connect the credit cards, we’ll talk more about the credit cards as well, I think it’s easiest to think first about transactions related to the checking accounts.
Once we have that down, we’ll go on to the credit card types of transactions. And you also have some accounts like a PayPal account, which is really, really nice that they have PayPal,
because I don’t think that the the the version on the desktop version has the same capabilities for the connection of the Pay Pal. So we might explore that in a little bit more detail as well.
If your financial institution isn’t here, then it’s likely that you still might be able to use the process of uploading the transactions by going to your financial institutions, downloading the cubio, typically a cubio file or the CSV, the basically Excel spreadsheet file, and then uploading them to the system. So let’s just pick an account, let’s pick like Bank of America here.
Now, here’s the signup process, sign into the account Bank of America, start by selecting the Bank of America accounts you want to connect with Intuit, the makers or QuickBooks Online education, go to the bank site to sign in and choose which accounts to connect, then we’ll return here, you here and bring you to your transactions.
So you can go to you go directly to the bank account, there’s going to be some difference possibly from financial institution to institution as to what how much security or what the different types of security measures, you’re going to need to connect, because you clearly need to have access to the bank data to get access, that’s the most confusing step which could still differ from financial institution to financial institution.
However, it’s usually fairly straightforward. Once you get the details of it, if you have problems with it, you may have to contact your financial institution in some instances, but usually it goes fairly straightforward.
So what we’re going to do is we’re basically going to stop here, and then we’re going to go, we’re going to actually enter the data into the system. And we’ll do that on more of a manual type of basis. Note no to that either basis that you use.
Once the data is in the system, then you’re in the same kind of limbo area, you’ve got the bank feeds directly from the bank into your system, either because you uploaded them, or because you downloaded them from the bank, then put them into the system, either method will get you in to the same spot in general,
having all that information in what I would call bank feed limbo, transactions that have been input into the system, but for which they have not been approved, have not been finalized.
The last pieces of information, such as the account, the vendor, the customers have not been entered. And that’s what we would need to do.
And then we’ll get into doing that part of the process. So of course, then you’ve got the login information on the right hand side. So we’re going to basically we’re going to stop it here.
And then in future presentations, we’ll get into a bit more detail on on the uploading the data and then working with a data that’s in what I would call bank feed limbo.
Just note that as you To create the data, before we finish this off in your chart of accounts, if you did not already have an account set up for that particular checking account,
it would then of course, add an account, which would be a cash type of account, a checking account type of account, which would then be linked to the bank feed data that it would be pulling in the data,
however, would not be in the system yet. It’s something that we’re gonna have to approve and pull into the system, something that we can further automate in the future with bank feed rules.
But no matter what kind of system you’re in, even if you’re completely dependent on the bank, the first month, the first few months, possibly,
you will need to do substantial work to make sure to pull that information in the proper way set up the proper rules to make the automation of the bank feeds. better, more automated, save more time, as time passes.