Understanding the Basics of QuickBooks Online Bank Feed
Along with a whole list of benefits, QuickBooks Online also has the option to use online banking. This allows users to complete transactions and other services while staying connected to their banking and financial institution. It is called the QuickBooks Online bank feed feature and is a great help to people who would prefer to save time and gain more efficiency while processing various bank-related transactions such as debit card or credit card payments.
This is one of the main aspects of QuickBooks Online that gives it a major advantage over its Desktop counterpart. It has provided plenty of influence over the people to choose the Online version instead of QuickBooks Desktop. There have also been many modifications to it over the years which have further reduced the time constraints that come with due payments. This has helped professional bookkeepers to complete their cash-based bookkeeping at a much rapid rate than they could at the desktop edition of QB.
Know the Basics of QuickBooks Online Bank Feed
There are a few things to learn, as well as a couple of requirements before you get started with using the QuickBooks Online bank feed feature. Here’s what you need- a stable internet connection and a bank account at a bank that supports QB transactions to be conducted directly.
Adding your bank account- things to note
- In case you do not know whether your bank offers such banking services, you can find out about it in the banking menu by opening the list of all the banks and financial institutions that participate in this service.
- It is a pretty long list as currently, more than fourteen hundred banking and financial institutions offer this type of assistance for QuickBooks Online users.
- You can also make a suggestion to your FI or financial institution to start offering such online banking transactional services if it doesn’t already.
- Part of the tasks which your bank performs includes controlling the amount and the nature of the information that QuickBooks Online can receive from the user.
Experts advise communicating with the bank whose account you are about to connect to use QuickBooks Online bank feed. This way you can effectively coordinate any details that may be required in order to set up your account for online banking in QuickBooks Online and QuickBooks Online plus, such as
- Any charges that are applied to such transactions
- The mode of connection supported by the bank
- The data necessary to enable this particular function
It is very important to have all the necessary specifics given to you by your financial institution because you will not have any access to this feature without these. You can read more about these three requirements below.
Charges that may be applied
QuickBooks Online bank feed does not have any extra costs linked to it, but there may be other fees which can be associated with-
- Certain bank services which you can ask your particular bank about
- Any specialist support that you might need if you encounter a problem or get confused anywhere during the setup.
The method for connecting to bank feeds
There are two ways through which you can link your bank account to this feature, known as-
- Web Connect- This type of connection involves getting data through a web browsing application once you download a file.
If you choose this option to complete online transactions, you cannot use another account to send money to your suppliers or a different account that you may have also saved here.
- Direct Connect- In this option, your QuickBooks Online plus or QBO can communicate expressly with your financial institution and complete tasks.
What you will need from your bank, in this case, is a password or a PIN that you will enter every time you have to download a statement or complete another transaction.
With the Direct Connect method of setup, you can also use a variety of banking services like paying your supplier or distributor online. In addition, you may transfer money from one account to another in the same program, provided that your banking institution allows it. Keep in mind that not all banks offer both Web Connect and Direct Connect, so don’t forget to ask your bank about it before making your choice.
Information provided by your bank for completion
The following are the various credentials that are mandatory for you to fill before completing the QuickBooks Online bank feed setup-
- ID and PIN or Password- The customer ID is unique for every bank account holder in order to properly identify the user who logs into their account. It may be numeric or alpha-numeric depending on the bank itself, such as your account number or name, and can be called in terms similar to Customer ids like Online ID or Login Name.
However, there are a few things to be noted here-
- You cannot have more than one Customer ID for one bank in QB.
- You can online set up one Customer ID for one company file as well.
For the Direct Connect method of connection, there can be an additional requirement of the following data-
- Account number- This is quite an important detail that is related to your bank account and is assigned to you when it is created. You can find it printed on your checks and statements but if are having difficulty in locating it, then simply speak to your bank about it.
- Account type- There are certain categories of the accounts that are created at financial institutions. You need to be aware of the one that your account falls in so that you can enter this important detail whenever it is asked.
- Routing number- This is a nine-digit number that is responsible for ensuring that all the transactions are directed to the correct place in order for them to be processed. This number is also usually present on checks or you can ask the concerned bank representative for more information about it.