How to use Bank Feeds in QBO - 2022

all right who wants to know how to do more stuff in quickbooks online anybody hopefully you do today we're going to talk about the bank feeds bank feeds how to handle the banking and the transactions tabs that quickbooks online has what do we do with it how do we use it what does it really mean and how do we make sure we use it properly in order to not create errors in our accounting system that is what this video is about this is a continuation of our how to do things how to do stuff in quickbooks online this is another video that i thought you know what i know a lot of people need this information because i have walked even clients or accountants of my clients basically how to do this stuff this is really really kind of fundamental for using the accounting system correctly so this is pivotal it is a you know where we're starting with this we are going to get into more videos on how to use rules how to get a little bit more into some of the nuances when you see something kind of strange come in but right now it's really the basic function of the bank feeds so we're going to get into what a bank feed is and you know how transactions show up there and everything but that is what this video is about so if you have ever heard the term bank feeds or in quickbooks online it might be called banking or it might also be called transactions that's the section that we're in today all right so if this kind of information is helpful to you please make sure you're subscribed to the channel please please please did you know that only about 20 of the people who watch my videos are actually subscribed that's like a pretty bad ratio i know that you don't want a bunch of accounting videos clogging up your feed when you're probably trying to watch like snl skits or other fun stuff on the internet but this kind of stuff will actually make you more money and it will help you in your business and it'll help you be more successful and i guarantee you not all of those other videos are have the same aim let's just say that so please go ahead and subscribe to the channel because i really do want to help you and this kind of information is all for you the small business owner all right so let's go ahead and get into quickbooks online where we're going to talk through how to use bank feeds all right here we are again in the sample company of quickbooks online and i wanted to show you guys the bank feeds today so the last time we had talked about quickbooks online i said yeah we're not going to get into the nitty gritty of bank beads we're going to do that in another video well this is that video we are going to get into it today so remember that this is a sample company not everything is perfect in this but we do have lots of transactions here the downside of using this information is that you know i don't have any context since these are all basically fake transactions you know i can't tell you exactly what you know this tran this incoming item was for but we're going to use the information in the system and kind of show you what you need to do as you're looking at bank feeds and your options as you're trying to bring things into the system so just to kind of talk about this conceptually first think about the bank feeds as sort of a holding place until it gets into your accounting system okay so it's sort of a place for you to sort and categorize and clean up a little bit make a little bit pretty before you add it into your accounting system so anything that's here in this checking so we're in the checking card right here and all of these transactions are coming and being pulled from the online banking of this checking account okay so but what quickbooks is saying is hey these have not yet been added into the accounting system they haven't been added into the register that's the you know official list of all the transactions so they have not yet been added because we haven't told them where to go and this is the job of a bookkeeper or an accountant or if you're the business owner and you're doing this yourself this is your job you have to tell these transactions where to go this is where we do our you know digital organizing so that we don't just add things willy-nilly and let the computer do the categorizing and we are going to do another video on using rules and things that can help our bookkeeping be much easier going forward but i would say you know it makes sense to kind of understand how to add things into the accounting system this way and understand what your options are so when we look at this we're going to see a couple things so typically it's going to be newest transaction to oldest transaction you can change that if you don't like that if you want to start with the oldest first you can change that and then you're going to see description payee category and then if it was money spent or money coming in and then the critical thing is over here you can click on any of the line items and it will expand out so you can add more detail but this is where you take an action so we will have to take an action for every single line item all right so we need to tell the system what to do are we going to categorize are we going to find a match if something else is already in the system like let's say a bill payment or maybe a a bank deposit are we going to record it as a transfer is it just transferring between two accounts maybe a transfer from checking to savings or is it recording as a credit card payment all right so we will tell the system these are the actions that we can take up here and then we will also tell the system where did the money come from or who who did we spend the money with and then what category this category are the accounts so when you click on this this shows your chart of accounts so you can type in a letter or you can type in you know if you're not sure what the account number is or if you are if you're using account numbers or if you're not exactly sure what it should be you can type in here maybe this is office supplies maybe okay and you can kind of figure out which category this item should be in all right and if you are associating this to a customer or project and it's billable you have the option to do that we're not going to get into tags today but this is something that's relatively new for quickbooks online you can type in a memo and very very importantly you can add an attachment you can attach a file so if you have a receipt you can attach it here or if you have some sort of documentation which is really great to help protect you if you are to be audited by the irs you can also create a rule so if you have a recurring transaction or something that shows up like every time books by bessie comes in if you want it to be created as a rule you can do that we're gonna have a separate video for that and then you can also see categorization history all right so here we are in books by bessie and we're gonna try to understand what action we need to take for this one so um one thing that i did notice is that this system is already pre-loaded with some checks that have been written so in that situation i'm actually going to go here and go to find match and see if there's anything from this payee that's sort of open in the system and look at this they did find one check that is for a transaction amount of 55 which is what our transaction was and the date range seems to match up so i do believe that the transaction that came through is related to this check that was written so in that situation i'm going to match it which is this checking the box oops we got to check the right thing we are going to check that 55 and we're going to click save so in that situation now that transaction is gone it's now sitting in our bank register and we're going to look at that real quick and we're going to go down to that date i believe it was 11 28. there it is okay and then this was that it had a check and then here it's been matched up this little green sign means it's coming from the bank feeds and it's been initially cleared all right so that means that it's now in the accounting system let's get back to our banking feeds and let's look and see what else we've got okay i'm going to go and do what we were doing before we're actually going to be looking at older transactions first so here's a situation that the system has already found a match for us we didn't have to go and search for one i like this match the date range seems to match up this looks like it's the right expense i've got the payee is already listed there and the description so this transaction looks really great to me i'm going to go ahead and click match picks hardware here this one doesn't look like it has a match we could go and look and see if it has one i don't see any really clear oh look at there 12 21 is that the right one so this is interesting because it's actually showing that this fine match it didn't find this match and this could be the same transaction here but this says 2436 so it actually is not the exact same as the amount that we're looking for so this could be one of those situations where maybe it's some place somebody that goes to this hardware store a lot and that just happens to be very close to the same amount this is where you really need receipts to understand if this is the same transaction and maybe this was just a bookkeeping era that the expense was entered in at the wrong amount so this would be a question i would want to see the receipt to get that resolved i can't say that i'm ready to match it right right yet so i actually will just skip over that one until i can look at the receipt so tim philip masonry this is our next one i love that the vendor is already pre-populated in here let's see here if i go to here can we find any matches i'm not seeing any matches quickbooks is not finding any matches for us for the same amount so i'm going to think this is something that we need to add i will categorize it as a it looks like a maybe a labor cost cost of labor let's go ahead and put that under installation and i'm going to go ahead and say this is probably billable and i'm just going to make up a complete random project put it in there just so you can guys can see what that might look like obviously i don't know that without kind of having a little bit more detail from this client but you would add an attachment and then you would go ahead and click add all right now the next one another uncategorized expense this time they didn't give us any vendor name but it looks like we've got a name of a chins gas and oil so i'm going to go ahead and add that oh look our vendor is already there we can select that and it looks like this is probably an automobile expense for fuel look at that that looks great since there's no matching transaction let's go ahead i don't think there was a matching transaction here so it doesn't look like there was any matching transactions here let's go ahead and refill that and we're going to go fuel and then we are going to click add all right here is a bill pay that's actually been matched so this company was using quickbooks online to pay their bills and this looks pretty appropriate the bill payment was on 1-1 and then we had this transaction come in on 1-1 for the exact same amount to the right people we're going to go ahead and click match on that and then we have a payment received so this payment was actually for an invoice so that when our invoices are paid in quickbooks online the payment will show up and it will automatically match the payment to the incoming money coming from the system so that's pretty great so we will see that which is nice we will just go ahead and click match okay mahoney mugs i'm not really sure what mahoney mugs is maybe it's a coffee shop i'm gonna say let's call this meals let's see if they have a meals and entertainment there they do not seeing a match for this one oh look there's a check interesting okay they're using a check at a coffee shop well i just made up the fact that it's a coffee shop so if that's the situation this looks like it's the right amount 1808 1808 let's go ahead and click save all right and then we have another sales receipt that's nice and matching because it came from the system here's a bill payment came from the system all looking good here's another books that's looking good as well although i i would want to make sure that this person pam seats is that this is properly being recorded to books by bessie because is that the same person this says legal and professional fees for some council okay remember i don't have all the context of this business and we're just using this as an example but i would want to make sure that that is the same person that this didn't accidentally get recorded in here because you do have to watch out for quickbooks online sometimes thinking that it's smart enough to know when it's not smart enough to know so sometimes they will pre-populate something here or find a match but then it might not be the correct match so you always have to verify what quickbooks has kind of come up with because you know 90 of the time it's going to be correct but then the other 10 of the time you're going to have to change it okay and 10 is enough to kind of screw up your books so do not just rely on what quickbooks tells you is the right match or the right transaction category all right so i think you guys get the idea now you can also i want to see if there's a transfer here i don't see any transfers as an option this one might actually be a transfer but i don't it doesn't look like it if we go over to the credit card again there's not really a payment over here but that would be the other thing that you would be looking out for is either a transfer between accounts it usually recognizes it but let's say that it isn't recognized and you were trying to transfer 2438 from this account to let's say the savings you would just type in the savings account here and then record your transfer like that okay but that's not what this is so i'm not going to record that that is a we believe that to be a uh something that needs to be cleaned up all right well hopefully that gives you an idea of how to use the bank feeds a little bit better in quickbooks online remember that if you're using the system for your invoices or you're using the system for bill pay that the system will recognize when the money is going out or coming in based on those other records that you have in the system so like i said quickbooks is pretty darn smart so work with the system trying to understand you can get into some serious trouble if it's recognizing a match but then you add it instead you could start to have two of the you could basically get duplicates in your bank register which is gonna throw off your bank balances so be really careful about that you don't want to get duplicates in here thank you so much for watching today i know that this can get kind of nitty-gritty and you know each transaction is different so what i really just want to remind you guys is to take your time really think about this stuff as it's coming in ask yourself the question what is this really and make sure that you get it into the right account all right all right well i hope that this walkthrough of the bank feeds has been really helpful to you and that you will be able to take it and go and you feel empowered to go and either do your own bookkeeping or if you are a bookkeeper or maybe an internal accountant or just an administrative assistant that's trying to help out the business owner with their quickbooks online i hope that this is helping you that much more and so please put any questions in the comment section below please also let us know if there's any other videos that you would like to see on quickbooks online what do you want to know how to do we are here to help you all right thanks so much see you guys later bye

Channel: Clara CFO Group

Views: 61,176

Keywords: how to use QBO, how to use quickbooks online, bank feeds in quickbooks online, bank feeds, bank feeds quickbooks, banking in qbo, bank accounts in qbo, classify in qbo, transactions in quickbooks, how to do bookkeeping in qbo, bookkeeping in qbo, qbo best practice, qbo best practices, qbo tips, tips on QBO, using quickbooks online, How to use Bank Feeds in QBO, demo qbo, 2022 demo qbo, demo of bank feeds, bookkeeping basics, quickbooks online credit card transactions

Id: cZH4Vx3BsAE

Length: 16min 21sec (981 seconds)

Published: Fri Mar 11 2022