Setting up a data interface between your QuickBooks file and your bank can dramatically reduce the time burden created by the manual data entry of transactional activity. Downloading bank feeds directly into QuickBooks eliminates the need to post transactions individually, keeps records current, and allows more time to address more pertinent business needs.
Initiating online banking service through QuickBooks is the first step in setting up a bank feed. Depending on the bank, you may be required to download a bank statement through their online portal for security purposes. You can specify the date range on your bank’s website to be downloaded into QuickBooks, of which a maximum of 90 transaction days is available to download when you first link an account. In cases where there are more than 90 days of transactions, you may upload the files to QuickBooks online via WebConnect if your bank supports QuickBooks Online (QBO), Quicken (QFX), Comma-Separated Values (CSV), or Microsoft Money (OFX).
Transactions are added either in batch form or individually, and users have the opportunity to review all operations before the download is accepted and applied in QuickBooks. Subsequent transaction downloads will be automatically matched and posted consistently with prior postings. The risk of posting duplicate transactions is eliminated because QuickBooks only accepts transactions that were not previously downloaded. Unmatched transactions are classified as an uncategorized income or expense, at which point you can assign and approve the appropriate category before allowing them.
For more information on whether your business is a candidate for this feature and how it could be beneficial, please contact our DiSanto Priest & Co.’s Business Resource Center.