 QuickBooks Online 2024. Bank feeds, credit card set up. Get ready and some coffee because we're moving on up with QuickBooks Online 2024. First a word from our sponsor. 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four so I trimmed it down a bit okay it's an improvement if you would like a commercial free experience consider subscribing to our website at accountinginstruction.com or accountinginstruction.thinkific.com here we are in our quickbooks online bank feed practice file we set up in a prior presentation opening up the major financial statement reports like we do every time the reports on the left hand side within the favorites we're going to be right clicking on that balance sheet to open a link in a new tab right click the profit and loss to open a link in a new tab and doing the same with the trusty trial balance if you don't have the trial balance in the favorites you could search for it let's tab to the right close the hamburger and then we'll change that range going from 010124 tab 033124 tab drop down to select the months and then we'll run it to refresh it let's go on over to the next tab do the same thing close up the hamburger let's change the range 010124 tab 033124 tab selecting the drop down we want the months and then we'll run it to refresh it tapping to the right again closing the hamburger again changing the range one more time 010124 tab 033124 tab drop down months and run it to refresh it let's go back to the balance sheet this time we want to be thinking about connecting the bank feeds not to a checking account but a credit card type of account so oftentimes when we think about the bank feeds we typically just think about the checking account but any the types of accounts that have a financial institution related to them are the ones that we possibly could connect to the bank feeds so that includes a checking account possibly the savings accounts sometimes even if you have your brokerage account to where you invest in stocks and bonds if it's within your bank then you might even be able to connect the brokerage accounts to some degree but also the credit cards now the credit cards are of course going to be a liability instead of an asset but the general functionality of the credit card will be basically the same as with a checking account so what we do with a credit card is we purchase things with the credit card instead of decreasing an asset the cash account as we do so we're going to be increasing the liability and it's going through the financial institution and the financial institution can track those transactions just the same way as though we had money in the financial institution and then we can have payments of the credit card so when we pay the credit card then that will decrease the credit card balance now when we decrease the credit card balance the other side of the transaction will be the checking account typically so we'll pay off the credit card with a payment from the checking account which means that we're going to have a transaction which will have bank accounts connected to both sides of it on the bank side and the credit card side that's when you might actually use a credit card payment form or like a transfer form so you can see we have a transfer form here and then in the credit cards we have the credit card credit and we have a credit card payment which is this one paid down the credit card so we'll talk about when you might use those particular forms and why they differ from when you would use like a deposit form or an expense or check form sometimes there's confusion as to what the purpose is for those forms so that's one of the things that we will be taking a look at with the credit card now also note that unlike when you talk about the checking account sometimes we pay things out of the checking account with something other than electronic transfers meaning we might pay with an actual check and we might have deposits that go into the checking account of actual just simply cash that we're depositing into the bank and it's more likely that we could have intermediary kind of financial institutions in between like a PayPal or a stripe which can muddy up the transactions that comes through to the bank feeds however with the credit card it's usually going to be easier because basically all the transactions are basically going to be electronic transfer type of transactions which means that the date that we record the transaction should be fairly close to the date that that it clears the bank and we're usually going to get that memo information which will help us to create say the vendor we also don't really have deposits on the credit card side of things what's going to happen is we're going to have the liability go up and up and up as we purchase things on the credit card and then we pay down the credit card so we don't have that whole side of the of the bank feed issue of basically the deposit side of things that we have on the checking account therefore the credit card is often one that you can you can do as you rely on the bank in other words when I make a purchase of something on the credit card to do a full service accounting system I would record it on my side with basically an expense form and then double check it to the credit card but because the credit cards are electronic transfers and the date that we make the transaction is close to the date that it will clear and I can verify the transaction quite quickly and I have the memo and everything I'm probably going to wait till it actually clears the bank and then record the transaction as it comes through with the bank feeds so it's it's going to be the easy process similar to the easy process that we saw on the checking account for vendors like the phone bill and the utility bill if you pay those things electronically okay so let's go to the first tab let's go to the transactions and within the transactions we could see that in the bank transactions we currently have one card that being the checking account we're going to add another one now that's going to be the credit card account so a couple different ways we can connect to the credit card within within here if I select the drop down we can we got the uploading or we can just simply link an account so I can go here and say I'm going to link an account and then I can search for the account now if you were first setting up the company file you have the interview process and the interview process will ask you to connect to the bank I usually don't even like doing that because I like to basically do it within here first first checking out the chart of accounts but you can go into here now if you do this before you set up the credit card account in the chart of accounts then you're going to have to set up the credit card as you go so you might say okay first let me think about how the credit card will be structured in the chart of accounts let's go to the chart of accounts then that's going to be the chart of accounts tab it's going to be a credit card which will be a current liability type of account down here so we don't have any thus far if you only have one credit card you might just call the credit card account by credit card right but some businesses have multiple credit card accounts in which case you might try to make a parent account and then put the subsidiary accounts within it so let's just check out what that might look like I'm going to go say new and then I'm going to select the drop down and we want a credit card credit card type of account I'll call it credit card that'll be the parent account let's say so I'm going to say okay boom and now it's going to be sorted down here under the normal sorting rules under the credit card let's say that we have an American Express and a Visa card or something so now I can say uh new and then it's going to be a credit card and credit card type and we'll say this is an AMEX credit card I'm going to make it subordinate to the credit card account that we just set up boom and so now I could say save and so now we have a parent account and then the one underneath it if I had another credit card I can also make it subordinate so I'm going to say credit card and then and then this will be visa visa credit card drop down and we want this to be under the credit card account all right and so I can say save and so that might be one way that you basically structure your credit cards so that on the financial statements you can collapse them into one account and then you can expand them within the credit cards if I select the drop down you could say you have you have the option to obviously make them inactive it's not giving me the option here to connect it to the bank so I'm still going to have to go back to the first tab and say I want to link to the bank if I wanted to link it find the credit card if it was a visa you know the visa or let's say American American Express whatever your American Express and then we can choose that and then you would have to verify your account which may differ depending on the institution but should be fairly easy to do and then it should give you the option to assign it to a particular account and if you don't have an account to create the account so we already set up the account in the chart of accounts we're going to mirror this process by instead of of setting up this way by uh importing so remember the other way we can do this is we can import I'll select the drop down and import and then once we import it will tell us which account we want to import it to so let's let's first imagine that we make some credit card transactions and so I'm going to say this is going to be the date this will be the amount and then we're going to say this will be the description so you might have some normal transactions that that go through the credit card you might be paying like your normal month-end transactions through the credit card like a telephone or utility rather than an electronic transfer from your bank which would be fine as long as you pay down the credit card at the end of the month otherwise you're going to end up with uh interest charges but you know you you have to do what you got to do depending on the on the cash flow circumstances let's say on one uh three uh two four we buy from staples and we're going to imagine that this is supplies maybe we use it mainly for our supplies purchases and so this is going to be let's say uh let's say this was thirty seven dollars from staples is a supply store and then let's say on one seventeen two four we purchased another forty dollars from staples supply store and then on one twenty seven two four we purchased let's say uh uh one hundred and eleven dollars and let's say this was a uh an eatery let's say it's like outback steakhouse now that could be like a personal then the question is going to be well was that personal or was it business we come up with these same kind of questions on uh the credit card side of things possibly even more because people are likely not to restrict their use of a credit card to just business although they should we should have a business card and then a a personal card and let's say on two seventeen two four let's say we had another forty dollars for staples and then let's say that we uh we paid off some of the credit cards so let's say there was a payment and let's say we paid off uh one hundred which i'm going to put in i'm not sure if these should be negative or positive let's put the amounts that we paid as negative because it's a credit card so it's like it's reversed and the payment i'm going to say is positive and let's say we pay off a hundred dollars from the checking account that's going to be the enter between the checking account and the uh the credit card let's say that was on two eighteen twenty four and then on two uh twenty one twenty four let's put another uh twenty eight dollars from staples and and then let's do another one more and two twenty two two four and let's say we spent another uh one hundred and fourteen dollars once again on out back out back okay so we can do so let's save this and then i'm going to say file save as browse i'm going to put it into here but change the file format to a csv file so we can upload it mirroring the matching to the bank feeds so boom and then i'm going to go into uh quickbooks and now we're uploading so just to remind ourselves where we are in the hamburger transactions closing the hamburger drop down we want to upload from file and then i'm going to upload the file then it will ask me where i'm going to upload it to notice the csv file is one of the abilities to upload the other by the way uh is if if you search if you search your bank you might have like a wells fargo this is the same as with your checking account you might have your credit card with them as well where you can download the transactions from the financial institution and then you could pick the quickbooks file which you can upload or if they don't have that you can upload the comma deliminated file so whether you're dealing with america express or your financial institution whoever's dealing with visa whatever you should be able to go to the financial institution for most of them and find either the quickbooks file or a comma deliminated file if you want to upload that way or you could just connect to the bank in a similar fashion as with the bank feeds in our case the comma deliminated is great for practice because once we upload it to the system we will have the information in what i call bank feed limbo uh which is similar using either method whether we directly connect or not if you want this data file and you have access to it it's the 460 file so you could follow along with the same info let's put it into not the checking account this time but the v but the credit card so i'm going to put it into the credit card and continue so first call first row is for for file header yes and then one column yes this is the format of the dates so the date date description description amount amount now i'm kind of confused on which way it should go so i'm going to continue and just check it so now we have staples descriptions the decreases i'm hoping are properly decreases for the expense even though they're increasing the liability and then the checking and then this is the payment that's going out so let's select them all let's add them in and if they're if they're incorrect i will add them again and reverse this item so generally credit card payments post a positive number and charge post a negative ones so the payments are positive and the charges are negative so i think we got it right i think we got it right if it wasn't we could reverse it but let's check it so quick books will import seven transaction using the fields okay and then done so now we have two cards up top we've got the checking account and then we've got the credit card transactions so here's our credit card and so just like with the checking account it's trying to kind of see which accounts it should go to they're completely wrong because we don't have the proper accounts for it to to guess from so this isn't helpful for us here but there they have that we've got the two tags up top and then we have the the checking account here okay so then this one hundred dollars would also be on the checking account side of things as a payment from the checking account so i'm going to add that to let's say we add another one for the checking account and so this time i'm going to say this is going to be this is going to be the date and this is the amount and this is going to be the description and i'm going to say this happened it would happen basically on the same day which was 218 so 218 24 and this is going out of the checking account negative 100 so amix payment that we're going to have it would be a transfer or an amix credit card payment so let's save that one i'm going to go to the file tab up top and then save as and we'll save it as a csv comma deliminated and then i'll save that one and let's go back on over this time i'm going to go back to the checking account although it shouldn't matter because i'm going to hit the drop down and imagine this one comes through on the checking account side i'm going to upload from a file drop down and we'll say this is going to be the 460 for the checking account pull it in this one's going to go into the checking account and continue yes one column date format date date description description amount amount good and then it's pulling in that one item which is going to be a decrease to the checking account okay yes done so now we have that inter transaction between the two accounts let's see if i can refresh the screen and see if it will see or recognize that those two transactions are connected so i'm going to say okay and then so so here it says it's paired to another transaction so it's noting that that one hundred dollars right there looks like it's paired to this one hundred dollars on the other side right and so we'll talk more about that later but that's uh that's something that quickbooks can kind of recognize that's going from one bank feed to uh the other bank feed okay so now next time we'll just add some of these to the credit card in the same fashion as we did with the checking account once everything is connected and in bank feed limbo like this the rest of the process is the same as with the checking account in essence except that typically easier because all of the credit card transactions are basically going one way except for the payments the payments are going to be paired to the checking account and therefore should be pretty easy to deal with and uh and they're all electronic transfers so nothing new has been recorded so we don't need to take a look at the financial statements yet because all of this stuff just got pulled into bank feed limbo no impact on the balance sheet income statement trial balance as of yet there will be next time