 QuickBooks Online 2022 OneNote Presentation. Bank feeds. Let's get into it within to it. QuickBooks Online 2022. If you have access to OneNote, would like to follow along icon left-hand side. Topic introduction 1017. Bank feeds. Also take a look at the immersive reader tool. The topic introduction is in the text area too with the same name, same number, but with transcripts. Transcripts can be translated into multiple different languages and either listened to or read in them. Same name and number as presentations as well. The topic introduction is designed to give an introduction to the topic, provide screenshots, links where applicable, give a counting background to complement the presentations and can be used to follow along with them if you don't have access to the software at that time. Bank feeds are a great tool. They can save a lot of time, but I just want to note that it's often kind of marketed as a type of thing where you could just set up your accounting software, connect to the bank feeds, and then your financial statements will just be automatically created from that point forward. That's not generally the case. The bank feeds can create the financial statements in more of an automated type of system in some businesses, more than other businesses, and we will talk about bank feeds. We do have a section or a course just on bank feeds in and of itself, but we want to start off by thinking about the accounting system without the bank feeds so we can look at what the forms are doing so that when we add the bank feeds, we know how the bank feeds are going to fit in and how to add those transactions into the system. The major problem people have with bank feeds is that you connect to the bank, you pull in all the financial transactions, but the software doesn't automatically know where those financial transactions should go with regards to the construction of the financial statements, the balance sheet, and the income statement because the bank fee transactions from your institution really only have a couple things. They know that it's a deposit, an increase to the checking account. They know whether something's a decrease to the checking account, and they might have some information with regards to the memo and so on, depending on the type of transaction, whether it be an electronic transaction, typically having more data involved in it or whether it be a check. But even if it has that information, it doesn't know to create basically a customer or vendor related to that information. And what you got to do is go in there and set up bank rules and enter the transactions or the missing data in order to allow the system to pull that information out of what I would call bank feed limbo and bring it into the accounting system to either create the financial statements, balance sheet and income statement, or to support the data that you have already put in in essence, helping you out with the bank reconciliation process. But before you can know how to do that, you got to think about where the bank feeds are going to fit into your process. Before you can do that, you need to know what kind of accounting system do you have. Is it a cash basis? Can you be dependent on the bank? Or is it more of an accrual type of basis system, which could be a little bit more complex to add the bank feeds into? So we have a whole course or whole section that kind of devoted to the bank feeds. So here's where the bank feeds are located. So the banking is here. Note that if you look up bank feeds, how to do bank feeds, you'll typically get some information on how to set up bank feeds. That's the easy thing. It's not too difficult to connect to the bank. You have to go through whatever process is required by the bank to do so. The difficult thing is once you get the information in here, these are the transactions in what I would call bank feed limbo, meaning you got the information from the bank, but it's not being used to create the actual financial statements or to support the financial statement data that has been used to do so. And you got to figure out how to add that information into the system. Here we are in our information with regards to the normal financial transactions. Note that when you enter the information from the bank feeds, you're typically talking about the cash type of transactions. So those would be like expense forms or check forms for the decreases and for the increases, you're talking about deposits. Note what you're missing here. You're not using the invoice or the sales receipts, typically the forms that are going to be used when you make a sale, whether you're on a cruel basis invoice or a cash basis, the sales receipt, meaning if you're dependent on the bank feeds to do everything, you're saying the deposits are the forms that you're using in order to increase your sales, which isn't really what you want to do in a full service accounting system, although it might be useful in some types of industries to do that with regards to the bank feed. So you've got to say, can I do that? Am I in a situation where I can do that? Can I be on a cash basis, not only on a cash basis, but dependent on something clearing the bank before I record it into sales? Am I okay with losing a little bit of the data when I use a deposit as opposed to entering, say, a sales receipt, which typically will have an item, a service item, inventory item, and provide or supporting data related to it. We'll talk about that by talking about the forms that are used to create the financial statements, and then we'll talk about basically the accrual process versus a cash basis process. I won't go into it in detail here because you can look at the presentation for it, but that's what you really want to think about in my own accrual basis. Am I on a cash basis? Can I be completely dependent on the bank feeds, and then how will the bank feeds fit into the process? Best way to do that is practice without the bank feeds, full service accounting system, then decide how the bank feeds fit.