Tips for BANK FEEDS in QuickBooks Online

hey guys in this video I'm going to take you along with me while I sort Bank feeds in QuickBooks online so I feel like as a bookkeeper a lot of times I'm just going along doing my process and I'm kind of curious what other bookkeepers do or like how they do it or in what order so I thought you guys might like to see that as well let me know in the comments kind of what your process is do you think there's anything I should be doing more efficiently do you do it similar to how I do it or do you have kind of a different system and I do have an older video the thumbnail looks like this all about kind of like the basics of Bank feeds what they are kind of how to get the information so you can check out that video if you want more of like an overview but this is more like a work with me video so I am going to pop over to my computer screen and I'll come back here to this screen to let you know a couple of things like what are some of the problems that can make like duplicate things in Bank feeds as well as what to do if you need to categorize income into different like streams of income within QuickBooks all right so here I am in the sample company today you go to Banking and this is the bank feeds area you can see all the different accounts in the sample company they have a checking a savings and a credit card um so what I do personally so I'm going to start with the checking and I go to all of the recognized transactions first because of course QuickBooks is making a bunch of rules all the time they're suggesting a lot of rules I have already approved so you know every time we get a water bill I know it goes to utilities stuff like that so I think it saves time if I go to the recognized transactions first and I think most of these are usually correct um this has bothering me how it's not compact I I can't figure out where to change it but mine is always compact so it's just one line per um per you know it's not so thick um but anyways I think copy it Bank detail to memo is really helpful because the bank details often have a lot of information in there um and it looks kind of weird but sometimes you can get a lot of Clues from that so I think that's a great thing I thought that was automatically automatically set to being on but it's not in this one and on this one I am going to show Bank details because that is usually what I sort by usually in the next step but this one hopefully should go fast because hopefully QuickBooks is doing its job and all these are mostly correct so what I do is I click all of them to start and then I'll just unclick any that are incorrect that I can see I'm usually out of like maybe 100 or more transactions that's only like two or three usually and if you guys don't know me my name is Morgan from fine points.biz I love to help you guys out with your bookkeeping businesses definitely check out my free master class and checklist as well as subscribe if you think this would be helpful to you and a thumbs up is always a huge compliment for me so sometimes it has a problem with checks I have found and then like I said I like to sort by the bank description in the sample company we're not getting very good descriptions so then I just go through all of these and like okay that one looks right all these look correct then maybe I come across one maybe it's like a tax payment and it thinks it went to one tax you know bracket but actually it should have been an owner's job because it was their quarterly taxes that just happened to me the IRS was you know some vendors can be in different categories um it is not always the case but you know if you're buying from Amazon maybe you could buy like you know office furniture as well as office supplies as well as maybe staff gifts stuff like that so sometimes QuickBooks is not perfect at categories and everything so maybe there's two of these that I think are not correct and the rest of them I can accept Okay so these are the two that are now not in QuickBooks I'm gonna take off this recognized um filter I guess you'd call it and then it's going to show me everything so this is all transactions and maybe these ones need a little bit more information again I like sorting by the bank detail just because that groups things together so it groups you know all these books by Bessie are together and I can be like okay that's correct so then I can add this one and then maybe there's a problem this one says two matches found and what I come across the most with this is if there's like checks maybe you wrote like three fifty dollar checks and QuickBooks maybe you had a hard time figuring out which check with to which um check entry that you had made and so you you see it can give you the two options I'm trying to figure if I can tell from this but um oh yeah so you can see it's the bill payment books by Bessie so this is probably the correct one so then I will match this and then hopefully the other one will be fixed because one of the problem areas was taken away and then of course when you have something that maybe QuickBooks have never seen before like a new vendor um you might need to create a vendor so then you can add that and then save the vendor and then this was income so it was a refund let's see if there's one that is for refunds I think that should be fine so then I set up like this new vendor and put it all in there correctly and then oftentimes QuickBooks will ask you if you want to create a rule I don't know if it does it automatically in the sample company um but one tip that I personally do not use automatic rules so let's look at this so it says under here you can create a rule and then so you would call it um Hicks Maybe all right so it comes from Hicks Hardware let's put it under supplies Maybe um so every time we get one from this vendor it's going to categorize it as supplies and then I do want to keep the existing Bank memo personally and then I do not like to this is what I was talking about I do not like to Auto add the rules so that means you don't even see it in the bank feeds it just automatically goes straight into QuickBooks and so I like to see what QuickBooks is doing I don't 100 trust all of their categorization to be perfect and yes there's probably a couple there's probably like a handful of vendors that it would be fine if I auto add that it's very very accurate but personally I don't really use this except for in a couple cases so let me know in the comments if you guys are doing more of the auto ad or if you like to see all of them or not so this creates a rule so next time we see that vendor it is going to populate correctly and it's going to remember it and just a quick note if you have categorized all your transactions and you have an app connected to QuickBooks so I have a video all about this I use Amazon business and I connect it to my Quickbooks so every Amazon purchase feeds into QuickBooks so it has a really good description then otherwise your client can be buying tons of stuff on Amazon all the time and you won't know what it is so I have a video the thumbnail looks like this if you want to check out how to do that process but basically now is the time you do that after you put all the stuff in categorize everything but before you reconcile you want to open that other tab the apps Tab and then match those transactions all right so let's say all the rest of these look good and then you're done with this account when you finish all your accounts or however you want to do it um you can reconcile so I go to Bank register and then reconcile and then you just need to go onto the bank website and get the statement sometimes they will import them into QuickBooks but the ending balance and the date and then that start reconciling okay I was trying to think of some examples of when QuickBooks might mess up or when there might be like duplicate transactions that get into QuickBooks because someone wrote to me and they asked me a question about big feeds they're like they wanted to see like this video they phrased it like how do I check each transaction to make sure it's not already in the bank account and I don't really I was struggling with how to answer this because I think once you do it you'll just kind of catch on but basically I'm not checking every transaction that is not in the bank account but how do I know if something is duplicated well first of all you're definitely going to find it when you reconcile but hopefully you can maybe catch it before that so you don't even put it into QuickBooks I would say the biggest clue that I get is that I'm doing something kind of funky so maybe there was like a transaction I was trying to split or I deleted something because it was void or something weird was happening then it causes the wrong thing to be waiting for you in the bank feeds one example that hopefully will be the most clear to you is this so my client gave a handwritten check to uh employee and when the employee cashed it at the bank the bank misread it so it was a thousand dollars different than what the check should have been so then of course QuickBooks did not match it because usually I put the check in QuickBooks and then when the person caches it QuickBooks knows those are the same checks and it matches but in theory what could have happened in this case was the check could have been cached through the bank feeds so say the check was supposed to be four thousand dollars but the bank actually read it as three thousand dollars so essentially that was kind of in QuickBooks twice at that point because once was the correct check amount and then the second one was the was the incorrect number that was came in from Bank feeds and they're not attached together at this point so I think the point that when I'm able to catch that is in the bank feeds because there's going to be a transaction in there that's just hanging out that I can see as a check but it doesn't have a match I don't know what the check is so at that point it's my job to do some investigation so I think I had to log into the bank to look at an image of the check figure out what went wrong and in that case it was a little more complicated because they actually had had to contact the bank tell them they owed us money owed us that thousand dollars and then eventually that was reimbursed so I guess kind of my point is yes it seems like so straightforward when it's a really simple business like every single transaction some when I spend money with my debit card it feeds into the bank feeds the next day I spend a different amount it feeds into the bank feeds I get one check it feeds like it should be very linear and very easy um but just as businesses get more complex there's just more moving Parts more things that can go wrong maybe you're doing invoicing that could be a little tricky to make sure you match the payment with the invoice like match the right amount that the customer owes you so I think it's really great if you're just starting out just to start with simple businesses I have a video the thumbnail looks like this about the 30 best businesses to start out with as a bookkeeper because they're a little bit more simple so hopefully you're going along you're learning your clients business you don't have any problems for a month or two and then maybe you have one problem and then maybe you have two problems so little by little you're gonna figure out how to deal with these little things you might need to tweak within the bank feeds just a quick tip I do often categorize income into different buckets it depends on your client and what they prefer and how complex their business is so if you want to do that you'll need some kind of system where they can communicate to you uh where the money's coming from so it might be clear if it's like certain vendors go to certain in certain buckets in QuickBooks or maybe it's you're invoicing clients and you can tell that way for me we kind of use like an outside like spreadsheet thing so they can tell me this is where to categorize these deposits so sometimes if I just want to get everything in QuickBooks to start pulling reports and I don't have time to categorize that income right at that minute I will just put it in one bucket called like uncategorized income or you can really make it up anything you want so that is a tip for categorizing if you need to come back to things you can use the ask my accountant bucket or you can create your own bucket sometimes I'll like have questions about certain checks so I'll be like this is a little category that I made that I know I need to check those checks so let me know in the comments if that's helpful and if you do something similar thank you guys so much for watching this video I really appreciate you staying till the end don't forget to give it a thumbs up if you liked it alright I will talk to you next week take care

Channel: FinePoints

Views: 5,336

Keywords: start bookkeeping, bookkeeping for small business, bookkeeping businesses, cheap side hustle, work from home for cheap, work from home, free training for bookkeepers, bookkeeping study, bookkeeper tips

Id: frjd-qaHliI

Length: 12min 19sec (739 seconds)

Published: Wed Oct 19 2022