Introduction

Processing bank and credit card accounts are a critical activity for small businesses. Not only must you follow practices that protect the company’s cash from misuse, but you must process it efficiently and productively to manage the company’s cash flow and maintain good customer and banking relations.

This chapter provides step-by-step guidance for processing bank and credit card accounts.

The guidance in the chapter is useful to bookkeepers as well as personnel involved in bank and credit card account activities. The chapter helps bank and credit card account personnel fine-tune their processing activities and provides newly hired or cross-trained employees with a foundation for processing bank and credit card accounts.

Accounting Process Automation

Accounting process automation (APA) automates routine bank and credit card account processes.

Automation improves the speed, accuracy, and reliability of processing bank and credit card transaction documents such as deposits, checks, transfers, charges, payments, and credits.

Our Accounting System uses accounting process automation to process bank and credit card accounts with QuickBooks.

Important: In this chapter, we address processing bank and credit card accounts. To automate routine bank and credit card account transactions, we utilize online bank and credit card connection setups. This feature allows QuickBooks to automatically import your company’s bank and credit card transactions directly from your company’s online bank and credit card accounts. This feature improves the speed, accuracy, and reliability of recording bank and credit card transactions because you’re no longer required to manually record or create these transactions.

Hypothetically, if all your company’s financial transactions flow through your QuickBooks-connected bank and credit card accounts, you wouldn’t need to manually record any transactions. Processing bank and credit card account transactions would be as easy as importing and reviewing the transactions and reconciling the bank and credit card accounts. However, not all company financial transactions flow through your bank and credit card accounts, and not all your company financial transactions that do flow through your bank and credit card accounts provide you with the information you may need or want.

An example of a financial transaction that doesn’t flow through your bank or credit card accounts is a non-cash transaction. A non-cash transaction is a transaction that doesn’t involve a cash receipt or payment such as asset depreciation or gains and losses on the sale of assets.

An example of a financial transaction that does flow through your bank and credit card accounts but doesn’t provide you the information you may need or want is a QuickBooks Online Payments deposit. Your QuickBooks integrated QuickBooks Online Payments automatically gathers and records your credit card, debit card, or ACH bank transfer (eCheck) online invoice, phone, mobile, and recurring payments. Each payment transaction is listed and summarized into a sales deposit and deposited into your account. When you import and review your QuickBooks connected bank account transactions, the total sales deposit and merchant fee are recorded to the sales and merchant fee accounts you designated when setting up your QuickBooks Online Payments subscription. Therefore, the sales and merchant account fees are recorded, and the amounts display in your profit and loss report. However, the sales amount doesn’t display on your homepage Dashboard Sales tile overview. If the Sales overview is helpful to you, you’ll need to manually record each payment transaction in the sales deposit and create a Deposit.

The important thing to remember is that most of your financial transactions do flow through your bank and credit card accounts and most of your time could be spent importing and reviewing the transactions and reconciling the bank and credit card accounts. However, the purpose of accounting is to communicate a business’s financial position, profit, and cash flow and there are times when just importing and reviewing the transactions and reconciling the bank and credit card accounts don’t achieve that purpose.

Throughout this Guide, we provide instructions and step-by-step procedures to enable you to manually record and create financial transactions for those times when you need or want to.

When we work with new clients, we set up their accounting system using QuickBooks-connected bank and credit card automation. We monitor the financial information the system is communicating and add manual procedures as necessary to communicate the client’s financial position, profit, and cash flow.

Bank and Credit Card Account Tools

The following tools are needed to process bank and credit card accounts:

• QuickBooks
• Company online bank account(s) compatible with QuickBooks
• Company credit card(s) (business credit card or personal credit card used only for business) compatible with QuickBooks

Bookkeeper Tasks

Your bank and credit card account tasks include:

1. Import and review bank and credit card transactions
2. Create banking Rules
3. Create Receipts
4. Create Bank Deposits and Transfers
5. Reconcile bank and credit card accounts
6. Email bank and credit card account reports

Accountant Tasks

Your accountant’s bank and credit card account tasks include:

1. Connect your bank and credit card accounts
2. Provide bank and credit card account training
3. Support bank and credit card account questions or problems
4. Review your monthly bank and credit card transactions and balances
5. Customize, group, and schedule your daily, weekly, monthly, quarterly, and annual bank andcredit card reports

Bank and Credit Card Account Bank Feeds

Online banking is a method of banking in which bank transactions such as deposits, transfers, and bill payments are performed electronically via the Internet on your bank or financial institution's website. The primary benefit of online banking is your ability to access accounts, review balances, and perform transactions at any time and from anywhere with an Internet-connected computer or mobile device.

QuickBooks allows you to connect QuickBooks to your bank and credit card accounts to automatically import transactions. This connection is referred to as “Bank Feeds” because your online accounts “feed” or import transaction information to your QuickBooks-connected online bank and credit card accounts.

Connecting your accounts saves you time, reduces manual entry and entry errors, and ensures your information in QuickBooks is current.

Your bank and credit card companies store your account transaction information. You want that same information in QuickBooks because it’s part of your company’s finances. Instead of manually creating or recording bank and credit card transactions, QuickBooks creates or records the transactions for you.

You can choose whether to add transactions as new transactions or match them with transactions you manually created in QuickBooks.

After your bank and credit cards are connected to QuickBooks, QuickBooks imports your bank and credit card transaction information automatically, which typically takes place each evening.

This chapter provides bookkeepers with the knowledge and understanding of QuickBooks banking, as well as guidance for importing transactions, reviewing transactions, and performing reconciliations

Import and Review Bank and Credit Card Transactions

Frequency

Import (Update) and review your QuickBooks-connected online bank and credit card accounts daily.

Banking Page

After your online bank and credit card accounts are connected to QuickBooks, you can import your bank and credit card account transactions. The Banking page, accessed from the left menu, displays your QuickBooks-connected bank and credit card accounts. Each account displays your Bank and QuickBooks balances. When you select an account, the Banking page displays the account’s For Review, Categorized, and Excluded transaction tabs. For Review, transactions are imported transactions you need to Add or Match. When you Add or Match transactions, they’re transferred to the Categorized tab. Categorized transactions are transactions you have reviewed, and they’re added to the specific account Register. Excluded transactions are transactions you have reviewed and excluded from the account Register.

When a bank or credit card account is updated, the number of imported transactions that haven’t yet been categorized shows in the account tile, and the imported transactions are listed in the For Review tab. The transactions need to be reviewed and assigned as Categorized or Excluded. During the import process, QuickBooks analyzes the transactions and auto-populates the Date, Description, Payee, Category or Match, Spent, Received, and Action transaction fields. If it can’t populate the Category (account) it will classify it as uncategorized.

You can display only transactions QuickBooks recognizes by opening the All transactions drop down and selecting Recognized. Recognized transactions are transactions QuickBooks has previously analyzed.

If a transaction is not recognized, QuickBooks auto-populates transaction fields to the best of its ability. You should open and review unrecognized transaction fields and enter or change transaction field information. You open an imported transaction by clicking on the transaction line. Once you review, update, and add an unrecognized transaction, QuickBooks retains the information and recognizes and auto-populates similar future imported transactions.

If you manually create a transaction, such as an Invoice, Receive Payment, Sales Receipt, Bank Deposit, Expense, Check, or Bill; QuickBooks matches the manual transaction to the imported transaction and lists the manual transaction in the account Register. QuickBooks will also automatically match any transactions done through QuickBooks Payments by matching their unique transaction IDs. You can view these in the Categorized tab. These transactions will show “Automatically matched” in the Rule column.

Processing QuickBooks Connected Bank and Credit Card Accounts

There are three steps to process QuickBooks-connected bank and credit card accounts:

1. Manually Update Your Accounts
2. Review Your Imported Bank and Credit Card Transactions
3. Review Transactions After You Match or Add Them

Step 1: Manually Update Your Accounts

Manually update your recent QuickBooks-connected online bank and credit card account transactions.

QuickBooks may not import some recent transactions listed on the current day’s online bank or credit card transactions. Generally, these include pending transactions. However, these transactions should import when they transfer to cleared, completed, or posted transactions the following business day.

To manually update your accounts:

1. From the left menu, select Banking
2. On the Banking page, select Update

Note: QuickBooks automatically imports your recent transactions for each QuickBooks-connected account. The imported transactions let you know if they match any transactions that you manually created in QuickBooks or imported from another QuickBooks-connected account. If it can’t find a match, QuickBooks starts a new transaction for you to add.

Step 2: Review Your Imported Bank and Credit Card Transactions

1. Select the account tile for the account you want to review
2. Select the For Review tab to start your review

Note: You can arrange the order of your accounts on the Banking page by selecting the dropdown arrow, then selecting Reorder accounts. In the window that appears, select the Pencil icon, then select and drag the accounts into the desired order, then select Save.

QuickBooks imports any recent bank transactions to the For Review tab that haven’t been automatically matched.

If you’re reviewing many transactions at a time, you can turn on Grouping. Grouping will group transactions together by month, allowing you to collapse months as you work through them.

To turn on grouping, select the small gear icon on the For Review page, the toggle Groups to on.

Review each transaction. For each imported transaction, you can match, add, or view multiple matches.

Match an Existing Transaction

Match means QuickBooks matched the imported transaction with the one you manually created or imported from another QuickBooks-connected account. This links them to prevent any duplicates. These are labeled as Recognized transactions. Occasionally these matches are incorrect, review each match to make sure it’s correct.

To match an imported transaction:

1. Select the transaction to open it
2. Review the “Matching records found.” Records found are transactions you manually created or imported from another QuickBooks-connected account
3. Select the link for the record found to get more details and identify it as the correct match
4. Once you’re sure you have the correct match, review and edit any transaction details as needed, such as the Date, Description, Payee, Category or Match, Spent, and Received fields
5. Select Match

QuickBooks now knows the record from your bank or credit card is the same one you manually created or imported from another QuickBooks-connected account and will not create a duplicate.

View and Review Multiple Matches

View means QuickBooks found more than one potential match. Review the matches and select the correct match, if any.

To view and review multiple matches:

1. Select View from the Action column
2. Review the “Matching records found”
3. Select the links for each record to get more details
4. Compare the potential matches
5. Select the correct match and then select Match

Note: If there’s no match, categorize the transaction.

Find Matches for an Imported Transaction

If an imported transaction should be matched but doesn’t prompt you with records found, you can find correct matches. You can also do this when multiple transactions make up a single deposit.

To find matches for an imported transaction:

1. Select the transaction in the For Review tab to open it
2. Select Find match
3. The Match transactions page opens, which displays a list of transactions you can match.‍
4. (Optional) Filter the transactions by changing the transaction type from the Show drop-down menu, using the search feature, or changing the From and To dates
5. Select the checkbox(es) next to the transaction(s) you want to match
6. For Bills and invoices, you can enter and make a payment in the Payment column
7. Proceed to select the correct transactions, which should make the difference $0.00
8. You can also resolve any difference by selecting Resolve at the bottom of the page and adding a resolving transaction
9. Select Save when finished to match the transaction(s)

Add a New Transaction

Add means QuickBooks didn’t find a matching transaction. Instead of matching, QuickBooks starts a new transaction using the information from your online bank or credit card company.

1. Select the transaction to expand the view
2. Review the recommended Payee and select the correct one if different
3. Review the recommended account category. This is the account QuickBooks wants to categorize the transaction to. For example, you see an expense for supplies for your office. QuickBooks may suggest categorizing it under Office Supplies. You can change the category by entering a different account‍
4. (Optional) Enter the Tag for the transaction (see Create Tags later in the chapter for more information)
5. Select Add to create and categorize the transaction

Add an uncategorized Imported Transaction

During the import process, QuickBooks analyzes the QuickBooks-connected bank and credit card transactions and auto-populates the Date, Description, Payee, Category or Match, Spent, Received, and Action transaction fields. If it can’t populate the Category (account) it will classify it as uncategorized. QuickBooks uses default accounts: Uncategorized Income, Uncategorized Expense, and Uncategorized Asset for transactions that don’t have a clear category. These are temporary accounts. If you know the correct account, categorize the transaction account.

If you need to add a new account or are unsure what account to categorize the transaction to, categorize the transaction to the Ask My Accountant account. When your accountant reviews your bookkeeping, they will communicate the proper category for each Ask My Accountant transaction.

To add an uncategorized imported transaction:

1. Select an unrecognized transaction in the For Review tab to open it. The Description column entry indicates the type of transaction.
2. To group the uncategorized transactions, select the Category or Match column down arrow
3. Select a vendor or customer name from the Payee drop-down menu or type the first letter(s) to retrieve the vendor or customer to assign a vendor or customer to the transaction.
4. Select Add new if the vendor or customer is not set up. Take the time now to set up the vendor or customer information
5. If you know the correct account, categorize the transaction account.
6. If you need to add a new account or are unsure what account to categorize the transaction to, categorize the transaction to the Ask My Accountant account. When your accountant reviews your bookkeeping, they will communicate to you the proper category for each Ask My Accountant account transactions‍
7. (Optional) Enter the Tag for the transaction (see Create Tags later in the chapter for more information)
8. Select Add to create and categorize the transaction

Enter or Edit a Payee or Category to Multiple Transactions

If you need to enter or edit a payee or category (account) to several transactions, you can save time by assigning them all at once.

To assign multiple transactions at once:

1. On the For Review tab, select the checkbox on the left side of the table for each transaction you want to assign the same payee or category
2. From the Batch actions drop-down menu, select Modify Selected
3. Use the fields in the Modify Selected dialog to specify the Payee or Category to assign to all the selected transactions
4. Select Apply

Note: You can select multiple rows by holding down the Shift key, selecting the first checkbox, and selecting the last checkbox.

Assign Multiple Categories to a Single Transaction (Split)

When you import a transaction from your QuickBooks-connected bank and credit card accounts, only one category (account) can be associated with it. However, you can modify the transaction if you need to list multiple categories for that transaction.

To split a transaction:

1. From the For Review tab, find and select the transaction to open it
2. Select Split to open the Split Transaction window
3. Select a Payee from the Received From drop-down menus
4. Select a Category, then enter a Description, Customer (if applicable) and Amount for each line until the Split amount and Original amount agree.
5. You can select Add Lines to add more categories, Reset to start over, or, if necessary, the trash can icon to delete a row.
6. Enter any Memo or Attachments
7. Select Apply and accept

Undo Added Transactions

If you realize you incorrectly added a QuickBooks-connected bank or credit card imported transaction, you can undo the transaction. This transfers the transaction back to the For Review tab.

To undo an added transaction:

1. On the Banking page, select the Categorized tab
2. Locate the transaction and select Undo from the action column, or for multiple transactions, check the box next to each transaction, then select Undo

Exclude a Transaction

If you realize you need to exclude a QuickBooks-connected bank or credit card imported transaction, you can exclude the transaction.

Note: If you have the same imported and manual transaction in the Categorized tab, undo the imported transaction to the For Review tab. The imported transaction should now match the manual transaction. If not, refresh (reload) the page on your web browser.

To exclude a transaction:

1. From the left menu, select Banking
2. On the Banking page, select the Categorized tab
3. Select the checkbox of the transaction to exclude
4. From the Batch actions dropdown menu, choose to Exclude Selected
5. Excluded transactions are transferred to the Excluded tab

Undo Excluded Transactions

If you realize you incorrectly excluded a QuickBooks-connected bank or credit card imported transaction, you can undo the transaction.

To undo an excluded transaction:

1. From the left menu, select Banking
2. On the Banking page, select the Excluded tab
3. Locate the transaction and select Undo from the action column

This transfers the transaction back to the For Review tab.

Create a Transfer

If a QuickBooks-connected bank or credit card imported transaction was a transfer from one bank account to another bank or credit card account, you can create the transfer.

To create a transfer:

1. From the left menu, select Banking
2. On the Banking page, select the account tile, then select the For Review tab
3. Select the transaction in the For Review tab to open it
4. Select Record as a transfer
5. From the Transfer account drop-down menu, select the account the funds were transferred to‍
6. (Optional) Edit or enter a Memo in the appropriate field.
7. By default, the Memo field contains bank detail information from imported transactions.
8. Select Add

Step 3: Review Transactions After You Match or Add Them

After you match or add imported transactions, the transactions are added to the bank or credit card account Register. The categorized transactions transfer from the For Review tab to the Categorized tab.

After you match or add a few transactions, check the transactions in case you need to make changes:

1. From the left menu, select Banking
2. Select the account tile for the account you want to check
3. Select the Categorized tab
4. Select the link in the Added or Matched column to check the transaction. Pay particular attention to the "Added to" or “Matched to” field. These fields show which account QuickBooks categorized the transaction to
5. Enter or change transaction field information as needed

If you need to recategorize a transaction to a different account, select Undo and go back to the For Review tab.

Make any changes before you perform your monthly reconciliations.

Create Banking Rules

To automate banking and save time, you can utilize the Rules feature in QuickBooks. The purpose of banking rules is to automatically categorize and add transactions. The Rules page contains a list of rules QuickBooks suggests or you create for you to view and edit.

Online banking rules go beyond the automatic memorizing and categorizing that QuickBooks does. For frequently downloaded items, rules can save you time by scanning QuickBooks-connected bank or credit card transactions for details you assign for specific payees and categories.

Default accounts are used when it’s unclear how a transaction should be categorized. Because these don’t accurately depict the category, they’re ignored by Banking Rules.

The following default accounts shouldn’t be used when creating a banking rule:

• Uncategorized Asset
• Uncategorized Income
• Uncategorized Expense

Banking rules only apply to imported transactions that are in For Review.

Create a Banking Rule

To create a bank rule:

1. From the left menu, select Banking, then select Rules
2. Select naw rule to open the Rule window
3. Enter a name for the rule in the appropriate field
4. Select Money in or Money out in the first drop-down menu, then select the bank account or credit card account(s) to which the rule will apply by marking the checkbox(es) next to each account in the drop-down menu
5. Set the rule conditions, specifying whether the transaction must meet All or Any of the conditions. You can add up to 5 lines
6. To reduce the need for multiple rules, you can create rules with “Or” so that transactions are edited when they meet any of the outlined conditions. To use the Or function, you must specify “When a transaction meets any of these conditions” and then select, Add line
7. In the “conditions” fields, specify whether the rule applies to Bank text, Description, or Amount, then identify the content the transaction Contains, Does not contain, or Is exactly for the rule to apply and enter the desired text in the blank field
8. Select the Trash bin icon to remove a condition, if needed
9. Select the settings for the rule fields, using the drop-down menus and fields to specify the Transaction type, Category, Payee, and Tags (optional)
10. If you want to apply multiple categories, select Split. Use the drop-down menu to specify if you want to separate the values by Percentage (%) or Amount ($). Then enter the percentages or amounts, along with the corresponding categories. Select Add line to use more than two categories
11. To enter a Memo, select Assign more to display the memo field
12. Select Auto-add, if desired
13. Auto-add automatically adds transactions in the For Review tab that meet the conditions
14. Select Save

Once you have banking rules created, you can see any transactions the rule has recognized by selecting the For Review tab, then selecting the Recognized tab.

Create Receipts and Bills

Important: Do not use Receipts for receipts paid for with QuickBooks-connected bank and credit card accounts. These receipts will have already been created in QuickBooks. Receipts should be used for occasional purchases made with unreimbursed owner or employee personal funds.

If you have owners or employees who regularly make company purchases with personal funds, such as travel, entertainment, or meal receipts, consider providing the owner or employee a business credit card or setting up an expense reimbursement program. Contact your accountant for more information.

Receipts Page

To help you manage physical expense receipts and bills, QuickBooks offers a Receipts and Bills upload feature. The Receipts page allows you to add, track, manage, and match your expense receipts and bills. When adding receipts or bills, QuickBooks extracts the information and automatically creates a transaction for you to review and add or match.

There are three ways to add your receipts/bills to QuickBooks:

• Upload
• Email
• QuickBooks Mobile app capture

When adding receipts/bills, add only one receipt at a time. When uploading or emailing receipts/bills, the file should be formatted as a PDF, JPEG, JPG, GIF, or PNG image file.

Receipts added are displayed on the Receipts page in the For Review tab.

Upload a Receipt or Bill

When you upload a receipt to QuickBooks, you’re adding the receipt image from your computer or portable device to your QuickBooks account.

To upload a receipt/bill:

1. Select Banking from the left menu, then select Receipts
2. Drag and drop the receipt/bill into the upload box or select the box to browse and open the file to upload
3. QuickBooks takes about 15 or more minutes to process the receipt or bill before it’s available to view

Email a Receipt or Bill

Before you can email receipts or bills, you must set up a custom email for your company and select which users will be able to forward receipts and bills. The custom email is the address that you’ll send receipts/bills. This will allow you to forward images of receipts/bills directly to your QuickBooks account via email.

To set up receipt/bill forwarding:

1. Select Banking from the left menu, then select Receipts
2. Select the Forward from the email box
3. In the Setup receipt forwarding window, enter a customized email in the field and selectCustomize email
4. When asked to confirm your customized email, select Confirm
5. In the next window, there will be a list of your existing users. You grant them access by toggling them on or off
6. If you would like to create a new user, you can select Add new user to be taken to the Manage users page
7. Select Done

Note: You can manage and add new email senders by selecting Manage senders on the Receipts page.

To email a receipt:

1. Create a new email using your email provider and insert the receipt/bill image file as an attachment. You can also forward an email that is a receipt or bill
2. Send the email to the custom email address you set up previously (ex. [companyname]@qbodocs.com).
3. QuickBooks takes about 15 or more minutes to process the receipt or bill before it’s available to view.

QuickBooks Mobile App Capture

To add receipts/bills to QuickBooks from your mobile device, you need to install the QuickBooks Mobile app on your mobile device.

To add a receipt/bill using the app:

1. Open the app on your mobile device, then tap the menu button
2. Select Receipt capture
3. Tap the Camera icon to take a photo of your receipt or bill
4. Make sure the receipt/bill is focused and within the green borders
5. Select Use this photo and the image is uploaded to your QuickBooks account
6. Select Done or Capture another receipt
7. The image is automatically listed on your Receipts page under the For Review tab
8. QuickBooks takes about 15 or more minutes to process the receipt or bill before it’s available to view

Review Receipts and Bills

Once receipts and bills have finished processing, it’s important that you review them for accuracy, as QuickBooks doesn’t automatically distinguish the difference between bills and receipts.

To review your receipts in your QuickBooks account:

1. Select Banking, then select Receipts
2. On the Receipts page, select the For Review tab
3. If your receipt/bill is not ready to view the page states “We are processing your receipts. You will see them here soon.” If your receipt is ready to review the receipt is listed
4. To review the receipt, select Review, select the Type (Expense or Bill), then enter or edit the remaining fields as necessary
5. To help you enter or edit the Receipt details, the receipt image appears to the left of the fields. You can zoom in or out and rotate the image
6. Select Save and close, Delete this receipt, or Save and next

Create Tags

QuickBooks has a Tag feature that enables you to give custom labels or tags to your transactions. These tags are placed into color-coordinated groups that you create to group transactions together. These groups can help you locate specific transactions or analyze your business.

Create Tag Groups

To create a tag group:

1. Select Banking from the left menu, then Tags
2. Select the New dropdown arrow and then Tag group
3. Enter a name for the group, then select a color from the dropdown arrow
4. Select Save, then Done

Create Tags

To create a tag:

1. Select Banking from the left menu, then Tags
2. Select the New dropdown arrow and then Tag
3. Enter a name for the tag, then select the group from the dropdown menu
4. Select Save

To create a tag through a group:

1. Select Banking from the left menu, then Tags
2. Locate the group from the Tags list, then select the dropdown arrow and Add tag
3. Enter a name for the tag
4. Select Save

Tag Transactions

To tag a transaction from the transaction screen (invoice, sales receipt, expense, deposit, etc.):

1. On the transaction screen, under Tags, enter the name of the desired tag, then select it from the list
2. If a new tag, select + Add and create the new tag
3. Select Save and close when finished

To tag a transaction from the bank feeds:

1. Select Banking from the left menu
2. Under For review, select a transaction ready to be added
3. You can’t add tags to matched transactions in the bank feeds. To add tags to these transactions, you’ll need to open the original transaction and add any desired tags
4. Under Tags, Enter the name of the desired tag, then select it from the list
5. If a new tag, select + Add and create the new tag
6. Select Save

Manage Tags

To manage your custom tags, navigate to the Tags page by selecting Banking from the left menu, then selecting Tags. From the Tags page, you can view and edit your custom tags.

The Tags page includes:

1. Money In
2. Money Out
3. See all untagged transactions
4. New button
5. Tags and Tag Groups list

Money In

The Money In pane shows a summary of your money in transactions (like invoices) by tag.

The default date range displayed is the last 365 days. This can be changed by selecting the drop-down arrow next to Last 365 days. You can also filter the tags displayed by selecting the drop-down arrow from the upper-right corner of the pane.

Money Out

The Money Out pane shows a summary of your money out transactions (like expenses) by tag.

The date range and filter options are accessed in the same way as the Money In pane.

See All Untagged Transactions

Selecting the See all untagged transactions link takes you to a list of transactions by tag.

By default, the list will show all transactions over the last 365 days that don’t contain a tag. You can add filters and customize the list further by selecting Filters and Tags.

Selecting a transaction from the list will open the transaction, allowing you to add tags or edit the transaction.

You can add tags to multiple transactions by selecting the checkbox next to the appropriate transactions, selecting Update tags, then Add tags.

In the Tags window that appears, enter the name of the tag, then select Apply.

You can remove tags from multiple transactions by selecting the checkbox next to the appropriate transactions, then selecting Update tags, then Remove tags.

New Button

The New button allows you to create new tags and tag groups by selecting New, then selecting the desired option.

Tags List

The Tags list displays a list of all created tags by a group.

The Tags and Tags Groups column contains all tag groups and their tags. Selecting a tag group from the list opens more rows showing the tags belonging to the tag group.

The transactions column indicates the number of transactions using each tag and group. Select the transactions from the Transactions column to be taken to a filtered list, showing all transactions over the last 365 days containing the tag (or, if for a group, tags from the group).

The Action column allows you to open reports for tags and tag groups, add tags to groups, and edit or delete tags and tag groups. When Selecting Run report for a tag group, the Transaction List by Tag Group report opens. Selecting Run report for a tag opens the Profit and Loss by Tag Group report.

By selecting the drop-down arrow for a tag group, you can add a tag and edit or delete the tag group. Selecting the drop-down arrow for a tag allows you to edit or delete the tag.

Create Bank Deposits and Transfers

What is a Bank Deposit?

A bank deposit consists of money deposited into a banking institution for safekeeping. These deposits are made to deposit accounts such as checking accounts, savings accounts, and money market accounts.

What is a Bank Transfer?

A bank transfer is money sent from one bank account to another bank or credit card account. Transferring money from your bank account is usually fast, free, and safe compared to withdrawing and paying by check. Bank transfers should always be created from the imported transaction in your bank feeds.

Bank Deposit Rules

There are three rules to follow when it comes to bank deposits.

QuickBooks Online Payments Transactions

Important: Do not create a manual Bank Deposit for QuickBooks Online Payments’ credit card, debit card, or ACH bank transfer (eCheck) payments. QuickBooks Online Payments automatically creates a Bank Deposit when the deposits are funded to your QuickBooks Online Payments connected bank account.

For paper check payments, create a manual Receive Payment for Invoice payments, Sales Receipt for sales not sold on account, or Bank Deposit for other paper checks such as vendor refunds.

QuickBooks Online Payments automatically creates the Bank Deposit and the Bank Deposit payment transactions.

To view a QuickBooks Online Payments’ Bank Deposit and deposit payment transactions:

1. Select Sales from the left menu, then Deposits
2. The Deposits from QuickBooks Online Payments page lists QuickBooks Online Payments daily deposits
3. Select the deposit line drop-down menu to view the detailed deposit payment transactions. You can’t view the detailed deposit payment transactions until the deposit’s settled

QuickBooks Online Payments Monthly Statements

You can also view QuickBooks Online Payments’ monthly statements. The statements summarize the QuickBooks Online Payments’ Overall Summary (Gross Transaction Amount, Total Fees Charged, and Net Transaction Amount) and Activity Summary (Date, Sales, Returns, Fees Charged, and Net Sales) for the month. The statements are available by the 5th of the following month.

To view the monthly statements:

1. Select the Gear icon on the toolbar, then select Account and Settings
2. Select Payments
3. In the Documents section, select the statement month and year in the Select a month dropdown menu
4. Select View

Manual Bank Deposits

As mentioned before, credit card and online invoice payments are automatically created and deposited with QuickBooks Online Payments, meaning you’ll typically not need to use the Bank Deposit function (through the New + icon). If you need to apply another type of customer payment towards an invoice, you use the Receive Payments screen to create them. An example of when you would create a manual bank deposit’s when a vendor mails you a check for a refund.

With QuickBooks Online Payments, the Bank Deposit screen contains a QuickBooks Online Payments section that has a list of pending payments. This is only shown if there are customer payments that haven’t yet been settled. These can be left alone, as they’re automatically added to a deposit transaction and deposited. To create and record a deposit that is not a payment received online or from a customer, follow the steps below to create a Bank Deposit.

To create a manual Bank Deposit:

1. Select the New Icon (+) from the left menu, then select Bank Deposit
2. The Bank Deposit page opens
3. Select the bank account you want to deposit the funds to from the Account drop-down menu, then verify the deposit date
4. (Optional) Enter any Tags for the transaction
5. Select the checkboxes of the transactions to deposit in the Select the payments included in this deposit or QuickBooks Online Payments sections, then select the Payment Method for each from the drop-down menu and enter any Memo and/or Ref No. desired
6. Transactions will only show up in the Select the payments included in this deposit section if they were deposited to the Undeposited funds/Payments to deposit account
7. In the Add funds to this deposit table, enter information about any additional items to include in this deposit, including who the item was Received From, the Account, Description (optional), Payment Method, Ref No. (optional), and the amount of the item
8. You can also use this section to account for processing fees by adding the fee as a negative amount.
9. If you’ll receive cash back from this deposit, select the account you use to track cash on hand in the Cash back goes to field, enter any Memo, and specify the Cash back amount
10. (Optional) Select Print to print the deposit slip before saving
11. Select Save and close or Save and new

‍Note: If you select an Other Current Assets account with Detail Type Inventory as one of these accounts when entering a vendor refund, you’ll get a Select a non-inventory account for your deposit error message.

Reconcile Bank and Credit Card Accounts

Frequency

You should reconcile your Bank and Credit Card accounts monthly to keep your banking records current.

Although your online bank account’s monthly statement should be available on the first business day of the following month, your QuickBooks-connected bank account typically takes one to two days to import the online bank account’s previous monthly statement transactions. Therefore, don’t reconcile your bank account until the online bank account’s monthly statement transactions are imported.

If your credit card account’s monthly statement does not have a month-end date (last business day of the month), reconcile your credit card account to the credit card account’s month-end date balance. You can and should contact your credit card company and change your month-end date to the last day of the month.

What is a Reconciliation?

You reconcile your bank or credit card account to compare your bank or credit card monthly statement ending balance with your QuickBooks bank or credit card account register ending balance. The previous month's ending balance becomes your current month's beginning balance. You want the difference between your bank or credit card and QuickBooks account register to match with a $0.00 difference.

To reconcile your bank or credit card account with your QuickBooks bank or credit card account register, you need your bank or credit card statement and QuickBooks bank or credit card account register. To perform the reconciliation efficiently, you should have a computer with dual monitors. You display the online monthly statement on the left monitor and the bank or credit card account register on the right monitor. If you don’t have dual monitors, print out the bank or credit card monthly statement.

Performing a Reconciliation

Once you have your bank or credit card statement available, you can reconcile the account.

To set up the Reconciliation:

1. Select the Gear icon on the toolbar, then select Reconcile
2. Select the account you want to reconcile from the Account drop-down menu
3. Depending on the type of account, different statement information fields may show
4. If your bank is supported with the automated statement import feature, select View statements to open the View statements window and download the statement for the period you’re reconciling.
5. If View Statements is not visible, your bank may not yet be supported, and you’ll need to obtain the bank or credit card account statement through their website. The View statements feature allows you to view unreconciled and reconciled statements that have been automatically imported
6. If the account was reconciled before, check the Last statement ending date to be sure you’re reconciling the following month's statement
7. Confirm that the beginning balance on your statement matches the Beginning balance, then enter the bank or credit card statement Ending balance and Ending date
8. Enter any additional information requested
9. If your statement doesn’t have an amount for any of the additional fields, you can leave them blank
10. For QuickBooks-connected online bank or credit card accounts, the Service Charge, Interest Earned, and Finance Charge (credit cards) fields don’t show. These are imported automatically
11. Select Start reconciling to open the Reconcile page

To reconcile the account:

1. On the Reconcile page, compare the total number of transactions listed for each transaction type, Payments, and Deposits for bank accounts, or Charges and Payments for credit card accounts, to the total number of transactions listed for each transaction type listed on your account statement
2. On your account statement, review the first transaction and find the same transaction from the list in the Reconcile window
3. The screen lists All transactions, but if you have a lot of transactions to review, you can use the Payments and Deposits or Charges and Payments tabs to review only Payments and Deposits or Charges and Payments. You can also set filter options by selecting the Filter icon on the left side of the screen
4. If the transaction listed on the screen matches the transaction on your statement, select the checkbox next to the amount for that transaction
5. If the amount in QuickBooks is incorrect, select the transaction to open it and manually adjust the amount, then select the checkbox when corrected
6. Repeat this comparison for each transaction listed on your statement
7. If necessary, select Edit info at the top right of the screen to edit the Ending balance or Ending date from your statement
8. If you need to leave the Reconcile page before finishing your reconciliation and you want to save what you have completed at that time, select Save for later at the top right of the screen
9. After you review all transactions listed, if the amount in the Difference panel is $0.00,select Finish now from the drop-down menu
10. In the Success message, select Done, or select View report to review your Reconciliation report
11. If you want to view or print the reconciliation report, select Reports, then Reconciliation Reports in the For my accountant section.

Bank and Credit Card Account Reconciliation Tips

On the account Reconcile page:

1. Select Payments to filter the list results to show only payments
2. Compare your Payments amount to your bank statement’s Other Withdrawals and Checks Paid amounts
3. If there’s a difference, scroll to the bottom of the screen and unselect any transactions with the next month’s Cleared Date
4. If there’s a difference, calculate the difference between the Payments’ amount and the bank statement’s Other Withdrawals and Checks Paid amounts
5. If there’s a difference, scan the Payment column amounts for the difference
6. If there’s a difference, scan the bank statement Other Withdrawals and Checks Paid amounts for the difference
7. If you don’t see the difference, you need to unselect all the Payment transactions and compare and select each bank statement’s Other Withdrawals and Checks Paid amounts to the Payment transactions. Start at the earliest bank statement Other Withdrawals and Checks Paid amounts and compare and select them in order
8. Select Deposits to filter the list results to show only deposits
9. Compare your Deposits amount to your bank statement’s Deposits amount
10. If there’s a difference, scroll to the bottom of the screen and unselect any transactions with the next month’s Cleared Date
11. If there’s a difference, calculate the difference between the Deposits’ amount and the bank statement’s Deposits amount
12. If there’s a difference, scan the Deposit column amounts for the difference
13. If there’s a difference, scan the bank statement Deposits amount for the difference
14. If you don’t see the difference, you need to unselect all the Deposits transactions and compare and select each bank statement’s Deposit amounts to the QuickBooks Deposits transactions. Start at the earliest bank statement Deposit amounts and compare and select them in order

Bank and Credit Card Information

This section provides bank and credit card account information useful to you, management, and your accountant.

Bookkeeping Information

The following reports provide you with information on your bank and credit card accounts.

For more information on reports, including how to customize them, see Chapter 7: Communicating Business Performance.

The relevant reports to your bank and credit card accounts include:

• Deposit Detail
• This report displays your deposits and their information, including date, customer or vendor, and amount.
• To run the Deposit Detail report:
• From the left menu, select Reports
• Search for Deposit Detail in the search bar and select it
• Customize the report if desired
• Select Run Report
• To print the report, select the printer icon
• Bank and Credit Card Reconciliation Reports
• This report displays a list of your bank and credit card reconciliations, with links to reports for individual reconciliations.
• To run the Reconciliation Reports:
• From the left menu, select Reports
• Search for Reconciliation Reports in the search bar and select it, where you’ll be directed to the History by account page
• The History by account page shows a list of your past reconciliations for the specifiedaccount
• Select the Account and Report period from the drop-down menus
• Locate the reconciliation for which you want to view, then select View report from the action column
• Change the Statement ending date, if desired
• To print the report, select the printer icon

Management Information

The following reports provide management with bank information to help them make good decisions.

The relevant reports for management include:

• Statement of Cash Flows

The Statement of Cash Flows, or Cash Flow Statement, is a financial statement that summarizes the amount and source of the company’s cash inflow and outflow over a period of time.

The Cash Flow Statement (CFS) measures how well a company manages its cash, meaning how well the company generates cash to fund its operating expenses and pay its debt obligations.

The Cash Flow Statement complements the Balance Sheet (financial position as of a certain date) and Income Statement (profit or loss over a period of time). Each financial statement provides a different insight into the financial health of the business. Therefore, it’s essential that all three basic financial statements are analyzed to determine the company’s overall financial health.

To generate the Statement of Cash Flows:

1. From the left menu, select Reports
2. On the Reports page, select the Standard tab
3. In the Favorites section, select Statement of Cash Flows
4. If the Statement of Cash Flows is not in the Favorites section, copy it from the Business overview section to the Favorites section by selecting the star icon. A green star indicates the report is in the Favorites section
5. Select the Report period from the drop-down menu or enter the beginning and ending dates
6. Select Run report
7. Select Add notes and enter any notes that may be helpful to the reader of the report
8. Select the email icon
9. Select the Email button, enter the recipient’s email address, and select Send

Accounting Information

Your accountant will access and review your monthly bank and credit card account statements and reconciliation reports and email you with any questions, concerns, or suggestions. Your accountant will email you a Request through QuickBooks to ensure your correspondence and documents are secure. The email will come from quickbooks@notification.intuit.com.

If the email requires a response from you, select the Respond in QuickBooks button in the body of the email. Do not reply to the email with your program. When you select the Respond in QuickBooks button, you’ll be redirected to your QuickBooks’ My Accountant page. The page will list the Request.

The My Accountant page has a Requests and Shared documents tab. The Request is listed in the Requests tab under Upcoming. Select the right arrow to open the list. The Request lists the date, text, the number of comments and documents, and status (In Progress or Done). Select To Do to open the Respond to the Request panel. You can add a document and/or post a reply in the request panel.

When your accountant determines the Request is complete, he or she will update the status of the Request to Done and the Request will be listed under Done.

The Shared documents tab allows you and your accountant to view, add, and delete documents.

You can sort Requests or Shared documents by Due date or Recently updated.

If you have any bank or credit card account questions or need assistance, contact your accountant.

To contact your accountant:

1. From the left menu, select My Accountant
2. On the My Accountant page, select your accountant’s email link below his or her name

OR

1. Go to your accountant’s website
2. Select Contact Us and complete the Online Form

Email Bank and Credit Card Account Reports

Daily, weekly, monthly, quarterly, and annual bank and credit card account reports should be emailed to personnel who use sales and receipts report information. See QuickBooks Report Email Schedule Chapter 7: Communicating Business Performance.