One of the best things about QuickBooks is that you have the ability to import transactions from your financial institutions. You may have already set up a connection but, are you using all the account tools? Once you’ve imported data from your credit card provider or your banks, there are a lot of things you can do. Let’s get started exploring the features in account tools.
Have you established the critical links you need yet? If you haven’t, start by clicking on the Banking link in the vertical navigation pane on the left. Click Add Account in the right upper corner. Next enter the name of your financial institution if it’s not pictured. Then, follow the instructions on the screen. Depending on the bank or credit card provider you will be asked to enter the username and password you use to log into each account online.
View your transactions.
After you have made a successful connection, return to the Bank and Credit Cards page. At the top of the screen you should see a card shaped graphic for each account you have linked. Next, click on one. The table that opens is not your account register. This view will default to For Review, which will refer to your downloaded transactions. The All tab should be highlighted too. Later we will get to Recognized transactions.
Before you’ve done anything with them, when you first download transactions into QuickBooks, many will appear under For Review.
You can review each transaction by clicking on it. QuickBooks will guess how it should be categorized, however, you can change this by opening the list in the category field and selecting the correct category. It's essential that you get this right because it will have an impact on reports and income taxes. If necessary, you can Split it between multiple categories by clicking on that button found on the right.
If it’s a Billable transaction, check that box and select a customer from the drop down list. If this box is not visible, click the gear icon in the upper right and select Account and Settings | Expenses. Make sure the Make Expenses and Items Billable is turned On (click on Off, then check the appropriate box to turn it on).
For the next step, you will determine how you want to process the transaction by clicking on one of 3 buttons at the top of the transaction box. Do you want to accept it and Add it to that account register? Do you want QuickBooks to Find (a) Match for it (like a payment that matches an invoice, for example)? Or, do you want to Transfer it to another account? Once you’ve made one of these three selections, the transactions that you’ve added or matched will move under the In QuickBooks tab (where you can still Undo them) and will be available in the account’s register.
You can save time by using QuickBooks Batch Actions tool.
What if you run across a duplicate or personal transaction that you don’t want to appear in the current account register? Check the box in front of each, click the arrow in the Batch Actions box then select Exclude Selected. These transactions will then be available under the Excluded tab. By using this tool you can also Accept or Modify multiple transactions simultaneously.
Thus far, you’ve been viewing All your transactions. To the right of it, click on Recognized. These are transactions that are already familiar to QuickBooks because they’ve appeared before and/or have been matched, or because you’ve created Bank Rules for them (we’ll address that concept next month). You’ll need to address these the same way you did the transactions in the For Review section; you can either Add or Transfer them.
This may sound complicated or confusing if you’re new to QuickBooks, but with a little practice downloading transactions, it will become easier. At Summit CPA we offer QuickBooks consultation. If you would like further information on how we can assist you with your bookkeeping needs, contact our office at 866-497-9761 to schedule an appointment with our Virtual CFO.