Welcome to the Fit Small Business QuickBooks Online training course. In this lesson, we’re going to cover how to manage QuickBooks bank feeds. After connecting your bank accounts to QuickBooks, you will need to review each transaction to ensure the date, amount, and account are correct before adding them to the QuickBooks check register.
You can follow along on your own QuickBooks Online account. If you don’t have one already, click here to sign up for a free 30-day trial and follow along below.
To complete this lesson, you can either watch the QuickBooks bank feeds tutorial video below, read through the step-by-step instructions, or do both. Let’s begin.
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Why It’s Important to Manage QuickBooks Online Bank Feeds
When you import bank transactions into any version of QuickBooks Online, they are unposted. This simply means you need to review them and provide some additional information before they can be added to the register in QuickBooks. In this lesson, we will show you how to review and categorize your transactions so they can be added to the register and your financial statements.
QuickBooks Bank Feeds Banking Center Layout
The QuickBooks bank feeds banking center includes a tile for each bank and credit card account that is connected to QuickBooks. Each tile includes the name of the financial institution, the current bank balance and the current balance in QuickBooks.
As indicated below, each bank and credit card account is located at the top of the page:
QuickBooks Bank Feeds Banking Center Layout
A brief description of the information you will find in the banking center is below:
- Bank balance of accounts connected to QuickBooks: If the bank account is connected to QuickBooks, the top portion of the tile will show the bank balance as of the date of the last sync. If your bank or credit card account is not connected, the bank balance will be zero.
- QuickBooks balance: The bottom portion of each tile displays the current balance in the QuickBooks register and the number of transactions in the For Review tab for each bank and credit card account.
- Bank balance of accounts not connected to QuickBooks: If the bank or credit card account is not connected to QuickBooks, the bank balance will show a $0.00 balance in the top portion of the tile.
- QuickBooks balance for accounts not connected to QuickBooks: Similar to the linked account, the bottom portion of the account box displays the current balance in the QuickBooks register and the number of transactions in the For Review tab below.
- Bank feed transactions are organized into the following three tabs:
- For review: This tab will show all of the unposted transactions. For example, when you import transactions into QuickBooks, this is where they will appear until you review them and take action.
- In QuickBooks: This tab will show all of the transactions that have been matched or added to the register in QuickBooks.
- Excluded: This tab will show the transactions that have been removed from the For Review tab by you.
How to Manage QuickBooks Online Bank Feeds
Once transactions have been downloaded into the banking center, you will need to review them for accuracy before adding them to the QuickBooks check register. First, head over to the banking center. Next, review the transactions listed on the review tab. Confirm the transactions that QuickBooks has recognized and matched first. Review the remaining transactions to ensure the information is correct before adding it to check register.
The steps to manage QuickBooks Online bank feeds are:
1. Navigate to the Banking Center
To review and manage downloaded transactions, select Transactions and then Banking. The Banking Center should display on your screen so that you can review and take action on transactions that have been downloaded.
From the Homepage, click on Transactions located on the left-hand menu bar and select Banking as indicated below:
Navigate to the Banking Center in QuickBooks Online
2. Review the Transactions Tab
Once a transaction is downloaded into QuickBooks, it is listed in the review transactions tab.
You should begin to review transactions in the review tab. Within the review tab, transactions are listed in the all tab and if it is a transaction recognized by QuickBooks, it will also appear on the Recognized tab.
Downloaded transactions are categorized in one or both of the following tabs:
- All: This tab will list all transactions (including those on the recognized tab)
- Recognized: If QuickBooks recognizes a transaction that is already recorded in your register, it will display a green Match tag next to the transaction and add it to the Recognized tab as indicated below.
To add the transaction to the register, just click the Match link located in the Action column. QuickBooks will add the transaction to the QuickBooks register and include it in your financial statements.
As indicated below, QuickBooks will attempt to match downloaded transactions by tagging them with “Match.”
Review the Transactions Tab in QuickBooks Online
TIP: QuickBooks can also recognize common vendor names and will make suggestions as to which account it should be coded to. If you accept the suggested account, QuickBooks will change the account for all transactions of that same name.
For example, if you have previously coded Bluehost.com transactions to Advertising (as indicated below) then the next time a Bluehost.com transaction is downloaded QuickBooks will suggest coding it to the Advertising account. If you accept the suggestion then QuickBooks will categorize all transactions with the Bluehost.com description to the Advertising account.
In the screenshot below, QuickBooks has automatically populated the category based on how the transaction was previously coded:
Review Transactions Tab in QBO Banking Center
3. Add a New Transaction
Click on the transaction that you want to add in the Banking Center and complete the fields as indicated below:
A brief description of the information to include in the add new transaction window is below:
Add a New Transaction in the QBO Banking Center
- Vendor or payee: Select the vendor from the drop down. If you have not set up the vendor yet, you can do so by selecting Add New from the drop down. Be sure to watch our video tutorial on Setting up Vendors.
- Account or category: Select the account that you want to code the transaction to.
- Description: Put a brief description in this field of what the expense is for.
- Add: Click the “Add” button to add this transaction to QuickBooks.
Troubleshooting QuickBooks Bank Feeds
When managing downloaded banking transactions you may encounter a few errors that you will need to troubleshoot. A couple of the most common errors that occur are transactions that have already been matched and an issue with the ability for QBO to download transactions due to a sign in error.
The two most common issues with QuickBooks bank feeds and how to troubleshoot them are:
Transactions Already Matched
Sometimes a transaction has been matched to the wrong transaction in the register. This can happen for a number of reasons, but usually because the register transactions are for the same amount and fall within the same date range. You can easily fix this issue by undoing it. This will return the transaction to the For Review tab where you can match it to the correct transaction.
Click the In QuickBooks tab and click Undo next to the transaction as indicated below:
Transactions Already Matched in QuickBooks Online
QuickBooks Bank Feeds Error Sign-in
If you see a red error message in the Banking Center indicating an error has occurred, more than likely your user id or password for your bank account has changed. In order to reconnect your bank account to QuickBooks, you need to update QuickBooks with the new sign-on information.
Click on the Fix It link as indicated below, and follow the on-screen instructions to update your user id and password:
QuickBooks Bank Feeds Error Signing In
How to Create Bank Rules to Streamline QuickBooks Online Bank Feeds
You can reduce the amount of time it takes to code and record transactions in the Banking Center by setting up bank rules. First, you will navigate to manage rules. Second, you will create the new rule. Third, you will set the conditions of the rule. QuickBooks will use these bank rules to automatically code transactions to the right account for you.
Follow the three steps below to create bank rules:
1. Navigate to Manage Rules
Click on the drop-down arrow to the right of the Update button and select Manage rules as indicated below:
Navigate to Manage Rules in QuickBooks Online
2. Click New Rule
Click the New rule button in the upper right-hand corner of the screen as indicated below:
Click New Rule Button in QuickBooks Online
3. Set Up Conditions for New Rule
Part of creating a new rule involves setting the conditions of the rule. This involves completing several fields of information such as the name of the rule, the bank account it applies to and the action you would like the program to take such as assigning a payee and category.
Create Conditions for New Bank Rule in QuickBooks Online
Complete the following fields to set up the conditions for bank rules:
A brief description of the information required to set up bank rules is below:
- Rule name: Give each rule a name so that you can easily identify it.
- For: Select the type of transactions the rule applies to. For example, money in (deposits) or money out (withdrawals).
- In: From the drop down, you can select which bank accounts this rule applies to. The default is All bank accounts.
- Conditions: You have the option to set the conditions that the transaction must meet for this rule to apply:
- From the drop down, select all or any
- From the drop down, you can select bank text, description or amount.
- From the drop down, you can select contains, is exactly, or doesn’t contain.
- In this field, you can enter the bank text, description or amount.
- Transaction type: Select whether the transaction is an expense, transfer, or check.
- Payee: Select the payee (if applicable).
- Category: Select the account the transaction should be categorized to.
Frequently Asked Questions (FAQs) About QuickBooks Bank Feeds
The most frequently asked questions about QuickBooks bank feeds have been included in this section. If you don’t see your question, visit the Fit Small Business Forum and post your question there. One of our industry experts will be happy to answer your question.
The most frequently asked questions about QuickBooks Bank Feeds are:
How do I enter bank feeds in QuickBooks?
You can establish a bank feed in QuickBooks Online by following these five steps:
- Navigate to the Banking center by clicking on Banking located on the left menu bar
- Click the Add Account button which is located in the upper right corner of the screen
- Type the name of your bank in the search box
- Sign into your bank account using the online user id and password you use to sign into your bank account
- Select the date range you would like to start downloading transactions
How do I connect my bank feed in QuickBooks Online?
To connect your bank feed in QuickBooks, log in to your QuickBooks Online account. Navigate to the Banking Center and click the Add Account button. Type the name of your bank in the search box and follow the on-screen instructions. You can watch our QuickBooks bank feeds tutorial to see how this is done.
Does QuickBooks Sync with a Bank Account?
Many financial institutions allow account holders to connect their bank accounts to QuickBooks. If it’s supported by your bank, connecting your bank account to QuickBooks allows your bank transactions to be automatically downloaded into the software program.
Wrap Up
That wraps up the how to manage QuickBooks bank feeds tutorial. The next lesson in our QuickBooks Online Training Course will be how to make deposits. In this lesson, we will walk you through how and when to enter bank deposits in QuickBooks Online. To access this lesson or any of the others in the series, click the buttons below. Be sure to sign up for a free 30-day trial of QuickBooks Online.
To access this lesson or any of the others in the series, click here.
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Angela Gallegos
February 11, 2019 at 11:27 pmHello Crystalynn:
I hope I can craft my question effectively (first time jumping in). I’ve got a question re matching a Customer Refund Receipt to a bundled transaction of credit card payments received in my bank account (refunded customer for returned product). In Banking, For Review, I click to “Find Match” I can see the various Payments received, but don’t know how to locate and Match the Refunded amount credited back to the customer. (Backstory: The actual crediting back to the customer’s card was not done through QBO but a standalone credit card machine. I don’t know if I did the return transaction incorrectly to start with. I did not create a Credit Memo for the return, simply did a Refund Receipt. On the Customer’s Account the Refund shows as “paid.” Thanks for any assistance!
Crystalynn Shelton
February 14, 2019 at 4:28 pmHi Angela, thanks for posting your question regarding how to match downloaded banking transactions. Based on the info you provided, it sounds like you took care of the credit back to the customer but your books have not been adjusted because you did not create a credit memo. In QBO, if you created an invoice for your customer for the original order, you should create a credit memo against that invoice. If you never created an invoice then just create a credit memo and indicate that you want to refund the customer. Once the credit memo is saved, it should show up as an item that you can match to the actual credit out of your bank account in the banking center. I hope this helps but if I am missing something it’s probably best to contact the Intuit Support team. They can actually take a look at your QBO and help you get this fixed. It’s a bit difficult for me to do since I can’t look at your data but I think I’m on the right track.
Best of luck,
Crystalynn Shelton, CPA
Jean Cell
October 3, 2018 at 4:46 pmI do bookkeeping for a restaurant. The sales are reported form a POS system manually yet money is deposited to the bank account by credit card processing centers. Also checks are written in the month and recorded on monthly statement in the month written. When the checks clear, they show up on bank statement.
The bank downloads include transactions from credit card purchases and automatic payments from the bank which can be recorded monthly in quickbooks from the download. However, the money deposited from credit cars processing centers, also included in bank download, are not what we use. Also checks written are entered to our accounting from check stubs. The cleared checks are included in the bank download which would make sense if we are going to reconcile them in quickbooks.
So the bank downloads are coming across just as a dump of everything hitting the bank statement.
1. I do not know how to exclude the transactions we record from other sources.
2. The items we are including, I understand need to be reviewed and added each time. Does this add need to be done on each individual item or is there a way to do a batch add?
3. Since we do monthly statements, I would like to deal with transactions for the month. If the bank downloads are for 90 days, are items previously downloaded not downloaded again?
4. I am not sure how to reconcile the bank balance shown on the statement with the bank balance shown in quickbooks.
5. The bank downloads are in a different format than the download showing up in quickbooks making matching of transaction difficult.
6. The menu format in your videos is not the same as my quickbooks online menu format. Were you working with an earlier version?
Crystalynn Shelton
October 5, 2018 at 5:05 pmHi Jean,
Thanks for your detailed questions regarding how to best manage downloads from multiple sources into QuickBooks. In a nutshell, you will need to pick one source to connect to QuickBooks and download your sales and once source to connect and download your payments. By having all sources connected to QBO, you run the risk of double counting which will produce inaccurate financial statements.
The 90 days that you are referring to is just your initial connection of a bank or credit card account to QuickBooks. For example, if you decided to connect a bank/credit card account to QuickBooks today (10/5) then following the instructions in our video tutorial, you bank will allow you to download the first 5 days of October, all of September, all of August and most of July. However, you can go back further by obtaining the CVS file from your bank and importing that into QuickBooks. The instructions on how to do this are also in the same Bank Feeds video tutorial.
Finally, yes when I recorded our video tutorials it was back in 2016. Some of the screens have definitely changed since then but the good news is that the mechanics are pretty much the same for most of the videos.
I hope this helps. If you need to find a local QuickBooks ProAdvisor to help you sort out the banking downloads, check out my article below or contact me directly at cshelton@fitsmallbusiness.com
How To Find A QuickBooks ProAdvisor: https://fitsmallbusiness.com/how-to-find-a-quickbooks-proadvisor/
Best of luck,
Crystalynn Shelton, CPA
Nicholas S Muller
February 22, 2018 at 9:05 pmWe are a small company and we purchase supplies (lots of transactions each month) on our credit card. How can I choose the line of service and customer from the credit card feed?
Crystalynn Shelton
February 23, 2018 at 4:50 pmHi Nicholas,
I’m not quite sure I understand your question. When you say line of service and customer are the charges that come through on your credit card statement items that you bill back to your customer? If so, you must turn on the billable feature in QuickBooks Online. Follow these steps to turn this feature on:
1. Go to Account Settings
2. Click on the Expenses Tab
3. Click the pencil in the upper right corner
4. Put a checkmark in the box that says “Track expenses and items by customer”.
5. Put a checkmark in the box that says “Make expenses and items billable”
6. Click save and close out of that screen.
Now when you go into bills and expenses you will see a field to make an item billable and then you can also select which customer that item needs to be billed to. The next time you create an invoice for the customer, you will see a notification asking you if you want to include the billable items on the invoice. QuickBooks will allow you to pick and choose what to include or you can include everything.
All the Best-
Crystalynn Shelton
Serena Croft
January 21, 2017 at 5:34 amI have a question. When reviewing bank transactions, what if a transaction is for more than one type of expense? For example:
Amazon $53.99 total spent
$25 Office Supplies cost
$25 Materials cost
$3.99 Shipping costs
Can 1 transaction be coded to more than one expense account? How is that done?
Thank you in advance for helping me!
Crystalynn Shelton
January 23, 2017 at 6:39 pmHi Serena, that’s a good question. Yes, you can definitely split a transaction across multiple accounts. To do so, you can go directly to the check register and click on the transaction that you want to do this for. There should be a split button. Once you click on that button there should be multiple lines that you can now use to select the account and the amount that should be allocated to that account.
All the Best-
Crystalynn Shelton