 QuickBooks Online 2023. Import bank transactions into QuickBooks. Get ready to start moving on up with QuickBooks Online 2023. Here we are in our bank feeds practice file. We started up in a prior presentation using the 30-day free trial. We also have open the free QuickBooks Online sample company. If you want the to open at the same time, we suggest using the incognito window or another browser. You can open the incognito window if using Google Chrome by selecting the three dots in the browser, opening incognito window, typing into the search engine QuickBooks Online Test Drive. We're using the sample company to compare the accounting view, the one the bank feeds practice file is in, and the business view, the one the sample company is in. If you want to toggle between the two views, you can go to the cog up top, switch the view down below. So we're now going to be working in on uploading the bank feed information we got from a financial institution into the quick support accounting instruction by clicking the link below giving you a free month membership to all of the content on our website broken out by category further broken out by course. Each course then organized in a logical reasonable fashion, making it much more easy to find what you need than can be done on a YouTube page. We also include added resources such as Excel practice problems PDF files and more like QuickBooks backup files when applicable. So once again, click the link below for a free month membership to our website and all the content on it books file so that we end up with the information in bank feed limbo. If I look at the practice file just to see where that will end up where we can end after this process within the bookkeeping area. This is under the business view. If I go to the transactions up top, we'll have the banking transactions here and I've got to close up some of their weird stuff in their practice file. And there's the bank feed limbo information the card representing the connection and the information on down below representing the items that have been pulled in from the bank but not yet having been fully used to either verify transactions or to create transactions to create the end result that being the financial statements whether method we use whether that be we we download directly from the bank and then upload it from the file we download from the bank or if we connect to the bank directly will end up in this same location. And this is really where the meat the heart is of us learning the bank feeds and how to properly work them. So we could go down here to the accounting side on the left hand side and this is our chart of accounts. So we saw that one account here happens to be a cash account. If you don't have a cash account, you might start by going here and setting up an account that's going to be a bank type of account. That's the key because if you hit the drop down, that's the one that you can connect to the bank as opposed to another one where you can't connect to the bank. We're going to use this one basically as a as a parent account will do. And then we'll put the subsidiary accounts that we will create as we connect the bank feeds under here. By the way, if you're in the business view to find where that is located, we could go into the bookkeeping and the chart of accounts. That's where the chart of accounts is on the business view. The other way we can go to the bank feeds is hit the plus button and go into the banking up top. This is in the accounting view where it was in the bookkeeping under the business view and we don't have the bank feeds set up. So this is the same if I go to the other view, sorry for switching back and forth all the time. This is like the transactions tab up here where you have the bank feeds. However, the bank feeds have already been set up in the business view. So in the accounting view, it's under the banking. And here's our options that we saw in a prior presentation. We can either connect directly to the bank, pulling the information directly into the bank, but we're going to upload the transactions, which might be useful for a couple reasons. You might be able to get further back in the transactions and in a practice problem, that might be a nice way to go so that you can download the data. And if you wanted to create your own practice file, then you can use this method as well. So we're going to upload transactions that we downloaded from the bank. Notice all the different formats. It's really nice. The QuickBooks Online has all these different formats that can be used, a .csv file. The QBO file will be the default that you're going to want to use that should have the least amount of issues. But if you want to create your own CSV file, possibly from Excel, that you convert to a CSV to practice with, that's a really great tool to be able to do. And you can't do that quite as easily with a QBO file. Last time we downloaded some information from the bank. This is the QBO type of file. It looks kind of like a QuickBooks desktop symbol, but it's actually a data file that we saw last time. If I right-click on it just to check it out one more time and we look at the properties of it, you can see it says it's a .qbo, it's an OFX data file or whatever. And this was the CSV file that opens in Excel, but it's actually a comma-sliced kind of file. So we're going to use this one. That should be the easiest one to do. You're going to have to download your own data or create your own data to follow along with the practice problem. So let's go back on over and say, all right, let's upload this, select the file and then we're going to go to the desktop. Mine is on the desktop with a bunch of junk all over the place. I think that's it. There we go. Let's upload it. So there it is. And continue. So we will continue. Which account are these transactions from? So then it's going to give you the information for the account that it's from on the left-hand side. And then we're going to add QuickBooks account. Now I could select the cash account if I had already set up the cash account. I noticed it's a bank type of account, but I'm going to try to use that as the parent account and see if I can add another account as we go, which will be the checking account. So I'm going to go add. I'm going to say that we have a new account. It's going to be a bank type of account. That's what it has to be or possibly a credit card generally. And then we're going to go say it's going to be cash on hand. I'll say this is a checking account. And then I'll put checking and then you might want to put the last four digits of like the account number or something like that. I'm just making up last four digits because you might want to put the name of the institution possibly and the last four digits of the number because if you have multiple accounts, that will help you to distinguish them. If you don't have multiple accounts, maybe you just call it checking and that's it so that you don't have this other stuff in your financial statements that will kind of make it a little bit more difficult to generate reports. But if you have multiple accounts and it's not as clear as to which account you're dealing with, then you might want to distinguish them by naming the institution. You might have multiple accounts at the same institution, in which case you might want to put the last four digits of the account number, which you don't really want to report externally. But if we put them up as a sub account, then we can collapse the account for external reporting for our financials if we need to do that. So I'm going to hit the sub account and I'm going to put it under the cash account here. So it's going to be under cash in its own kind of checking account area. So then it says, when do you want to start tracking your finances from this account in QuickBooks? Now this is going to be critical when you're setting up your account to try to make sure that you're not duplicating information or that you're not missing information as you pull it in. And there could be some limitations in how far back you can go depending on the institution. But I'm getting this directly from the stuff that I uploaded and I believe it was like for the last three months of last year. So I can hit the drop down and say beginning this year, beginning this month, today or other. I'm going to go other for my selection and I'm going to check off when my data kind of file starts with it, which I think was September, September, October, November. I think it was September that it starts from. So what was your account balance on 831-22? Now note that if you're starting to pull the bank feeds in, then you could set basically what your beginning balance was before that point in time. And that will help you to kind of put in the beginning balance. But note that when you do that, when you put a beginning balance in place, it's going to record a transaction generally, which is which is going to be like cash goes up and the other side goes to like opening balance equity or something. So you got to be careful with that. Oftentimes, like if you're starting a new business from scratch, then you might have already had the checking account in place. You only want to pull in bank feeds to some degree, to some date. And then you want to put the beginning balance from prior to that point in time. Now it's useful. It's nice if you're able to get like a whole years of data in one year, you know, if you could pull it in one way. But so that's like that beginning balance issue that you could have. The other way you can kind of deal with that is when you go into the bank reconciliation, we'll talk a little bit more about it at that point. We have this beginning balance issue and it'll come to light when you try to reconcile. So I'm not going to put a beginning balance here. I'm going to just put it at zero for now. And then we'll talk more about that when we get into like the bank reconciliation type of area. And before I finish this, I think my data actually goes back to August. So I'm going to go August first. So mine's going to go from August first because I think that's just when my data set goes to you can use whatever you know, data set is appropriate for the data set that you are using that you can pull from your financial institution or you can create it if you want using Excel and saving as a CSV file. Alright, so then I'm going to I'm going to save and close that. And then which account are these? So now I've got my account set up. So that looks good. So I'm going to say continue and import complete next step. Accept your transactions. You're in control of how your bank info goes into QuickBooks transactions only show up in your books after review and accept them. In other words, I would interpret that as saying it's going to put the information into what I would call Bank Feed Limbo, which is this information here. So I'm going to close this out. Your bank connection is all set. Let's review and add transactions to your books. Check out these tools to get you off to a great start. So you can take a look at these. If you so choose, get an overview, take a guided tour. So I'm going to close that up. So now we have our tab here. This tab up top represents the connection that has been made. We'll add some other ones. We'll do it like a credit card account as well. And maybe we'll even do a PayPal account. And then we've got the information for review down below. So now we've pulled in our banking information and notice again, all we have from the banking information is similar to what you would expect on a bank statement. You've got the date, you've got the description, you've got the category, and you've got whether it was an increase or decrease. That's it. What are we missing? We're crucially missing the account that we need to apply it to and we should be adding from the memo if we can, the customers and the vendors to pull it into the actual financial transactions. So you can see that the financial transactions are not being made yet. Let's just clarify that or double check that or make that more concrete by right clicking the tab up top, duplicating it. And I'm just going to open the major financial statement reports, the balance sheet and the income statement going down to the reports on the left hand side. And we're going to open up the balance sheet, one of the major financial statements. And I'm going to go from 010123 to 022823 and run it. And so they put in, again, they put in this amount as the beginning balance of the checking account. But that's all we have. We don't have any income statement amounts. If I right click and duplicate it again and take a look at the income statement by going to the reports at the left hand side. And then I go into the profit and loss report. There's nothing on the income statement. If I run this from 010122 to 022822, let's do 123122. So this is the year that I entered the data in. There's nothing in it for that year. And if I go on to the balance sheet, all we have is this 36. Let's run it for the date 010122 to 123122. Run it. And let's see what they did to put that 36 in there in the checking account. And they put the opening balance in place, right? So even though I could, so that I think they pulled this from the opening balance of the of the checking account that I pulled in, because I told it to put 0 in the opening balance. And I think it still pulled this in basically from the balance that was coming from the data file. So you got to be a little bit careful of that when you first set up the bank fees to see what's it going to do with this opening balance. And you'll be able to see that more clearly when you do the bank reconciliation. Because remember what the, there's a difference between, there's two ways like software can show you this information and connect to your financial institutions. If you have financial software, like a, like a, I think personal capital has one or a quick end might do this versus quick books where they can actually pull in the data from the financial institutions, like your checking accounts, your savings accounts, and your, your, your investment accounts, like in stocks and bonds and give you a balance sheet based on the end result on that is there at that point in time. That's not what quick books does. However, quick books pulls in the information because if you, if you pull in just the ending balance, you get a nice snapshot balance sheet, but you don't get the income statement. You don't get the activity reports. So what you want here on the checking account is to pull in the activity. Now the problem of pulling in the activity for any range of time, if it's the first account that you've ever connected to, is that you have that beginning balance before the range of time. And you have to account for how are you going to deal with that beginning balance? Possibly you're going to, you're just going to us, you know, journal entry, the beginning balance or something like that to start at some specific point. Possibly you had an accounting system prior to using quick books and you want to start from the end of the last accounting system and then go forward from the current accounting system. So that's something to keep in mind. Now, if, if something is wrong with this beginning balance, then we'll see that when we do the bank reconciliation, because then, then we'll see a difference of discrepancy. So that first bank reconciliation is often necessary. You still want to do the bank reconciliation, even if you're construction your books from the bank feeds and it usually has like that quirk, that problem of reconciling the first time and then the bank rex will be quite easy from that point forward. So we might have to go in and make an adjustment to this, but we're going to, we're going to keep that here for now. Look what QuickBooks did to the other side. They dumped it into opening balance equity. You'll recall that when we cleared out the bank, the general ledger accounts, that the opening balance equity was one that I said we couldn't delete most likely because QuickBooks use it to force the transactions to be in balance when you're trying to enter something that doesn't have two sides to it, doesn't have the double entry system to it. So they forced the transaction to opening balance equity. It shouldn't be there. QuickBooks is basically telling us, Hey, this is a made up account. We didn't know where to put it. That's where we put it because we didn't know where to put it. Probably it should be somewhere in equity. If it's a sole proprietor, probably it should be in like owner's equity. So we can always do a journal entry, which we'll do later to clean it out, clean anything out of opening balance equity, which looks ugly, which looks not professional, which looks like if you give this to someone, you have something in it, it looks like you might not exactly know what you're doing kind of because, because even though it might not be totally wrong or messing things up too bad because it's still in equity. So what doesn't really matter if it's opening balance or if it's in owner's equity, but again, it looks, it looks like you might not know what you're doing because QuickBooks dumped it into this clearing account, this dumping ground account. So that's something to be aware of. Now just remember on the sample company with the, with the business view, the reports are located in the business overview over here, and then the reports on the right hand side. So you can open up your balance sheet and income statement from those items. So what we'll be doing in future presentations is going back into the bank feed limbo here, adding the information necessary to pull these out of the, the limbo area and pull them into the promised land of making the financial statements or verifying the financial statements transactions that, that we input. And as we do so, we're going to be making rules so that the process can be automated going forward. It will not be automated when you first set it up. You need to know a little bit about what you're doing in order to automate it. Once you do know what you're doing and you have automated it for a few months, then it will become automated going forward because you've taught, you've taught the system what you wanted to do, given it the last few pieces that it needs to actually pull the financial statements in from the bank, use it to construct the financial statements, balance sheet, income statement related reports. We'll get into that in future presentations.