 QuickBooks Online 2023, setting up bank feeds, options and overview. Get ready to start moving on up with QuickBooks Online 2023. Here we are in our get great guitars 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 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. The incognito window or another browser if using Google Chrome you can open the incognito window by selecting the three dots in the browser new incognito window typing into the search engine QuickBooks Online Test Drive looking for the option that has into it in the URL into it being the owner of QuickBooks Online. We're using the sample company to compare the accounting view the one that the bank feeds practice file is in and the business view the one the sample company is in. You can toggle between the two views by selecting the cog up top and switch the view on down below. We're now going to get into the logistics of the bank feeds the different ways we can set up bank feeds and the pros and cons of using those different ways. Few things we need to keep in mind one the bank feeds need to be connected to a general ledger account usually a cash account but remember that most of the rules most of the processes that we do for cash type of accounts can also be applied to credit card type of accounts because the credit card types of accounts are going through the same types of financial institutions such as banks so we've got to set up a general ledger account and then two there's two main ways we can get the actual information from the bank into the QuickBooks system one is to do it automatically that's the most common way where we connect directly to the bank and we pull that information directly from the bank into the system or we can go to the bank or financial institution itself download the information in some format such as a CSV file or a QuickBooks file this is not the actual software although it looks like the same icon this is a data file from the bank which we can then use to import into the QuickBooks system now whether we import the data directly into QuickBooks from the bank or we go to the bank itself download the information and then import it into QuickBooks once the information is in QuickBooks will basically be in the same place I'm going to show that by going to the sample company over here which means we're in the business view at this point and I'm going to go down into the bookkeeping where the bank feeds are located and then I'm going to go into the transactions up top and I'm going to review the categories down below and here are our banking transactions so I'm going to close up the hamburger we've got the banks that have been connected to up top and then we've got the actual transactions down below these being the transactions that have not yet been finalized they're in what I would call bank feed limbo at this point and some added information needs to be put in place before they can be pulled in to the actual accounting system and used to either create the financial statements or to help double check the transactions we used to create the financial statements and of course the data that we need to add is going to be the account is going to be necessary to add and then possibly vendors and customers in order to populate that information to pull it over so whichever method we use to get the information into this point and the accounting software will then remain will be at the same point at that time which means we'll have this information down here that will have to provide the added couple components in order to pull that information in from what I would call bank feed limbo to the creation or double checking of the financial statements now there's a few pros and cons of using one method or the other obviously most people would like to connect directly to the bank because then you can pull that information automatically in and every time you log into QuickBooks it'll pull that information in and that's just the easiest thing to do however in some cases you might not be able to get as much data from a direct connection to QuickBooks to the bank as you could if you downloaded the information so if you want to pull like a whole years of information or multiple years of banking data from your financial institution into your QuickBooks system so that you can reconstruct prior years or something like that then you might be limited in terms of how much you can pull directly into QuickBooks and you might be able to get more information by going to the bank directly and downloading the information in a way that you can then import it into QuickBooks so if you're just starting off the QuickBooks company and you're trying to pull in the QuickBooks file and you're trying to pull in a bunch of data like a whole years of taxes or whole years of accounting so you can do your taxes or something then you might be required to first pull the information from the bank and then once you've got that beginning stuff set up then you can set up the bank feeds from that point going forward also if you're doing a practice problem as we are doing here then possibly you don't want to do the direct bank connection maybe you would think that it would just be easier to download the information from the bank that's what we're going to do here we're going to download the information from the bank and then upload it for the purposes of our practice problem once the information is in the system will be basically in the same spot all right so let's go back on over to our bank feed practice file so the chart of accounts is down below it i'm in the accounting view now so it's in the accounting tab to the left and there is our chart of accounts if you're in the business view and I open up the hamburger then it's going to be under the bookkeeping and then the chart of accounts now the chart of accounts I have to hit that to see the chart of accounts is needs to be connected something in the chart of accounts needs to be connected to the bank feed the bank feeds are going to tie in to feed into one of these accounts so and the type of account usually needs to be a bank type of account so when you set up a new account and you say new account you can set up it's got to be a bank type of account that you're going to be setting up because the bank type of account is the only account type other than a credit card type of account that has the capacity to connect to the banks remember that the same concepts we're using here generally apply to the credit card we will dive into credit cards more in a future presentation so this account they set up for us we didn't delete it they're using it as a cash on hand account but it was set up as a bank type of account so you might go in here and set up your account first and then you can go in and connect to the bank that's one way that you can set up the bank feeds from your actual chart of accounts and connect that way which makes sense because you can set up the account and then add the bank feeds when you set up the account you might want to put the name of the institution for example and possibly if you have multiple accounts the last four digits of the account number because that might help you internally now that's not something that you want to often give externally to other people so you might also create a cash kind of parent account and then maybe if you have multiple accounts under it make them sub accounts so that you can collapse them for external reporting as just cash and then for internal reporting you have the multiple to kind of checking accounts the other way you can set it up is if I go up to the plus button up top and I go into the banking tab within the banking tab you've got your first item is the banking this is where kind of like the bank feeds are located if you're under the business view it's a little bit different it's under bookkeeping as we saw before it's under bookkeeping and then you've got your transactions up top and that's where your bank transactions are it's already set up here because they have a few that have been set up already so that's that's where we'll go and we'll set them up here and then we've got our instructions to set it up usually the actual connection of the bank feeds is pretty easy that's not the difficult part of bank feeds the difficult part the people get messed up on is that they pull in all the information they get the connection right but then they have all the stuff in what I would call bank feed limbo and they don't know how to add it to the system they get overwhelmed at this point in time because they don't know the accounting system and so it's useful to first have a understanding of what's going on a little bit before but we can build it from scratch here even if if we don't so it's going to say automatic income and expense tracking save hours of work by tracking finances automatically you could see how it works with the video if you want number one connect bank or credit card to get started number two review and add your transactions number three see how your business is doing so we can either upload transactions that's the way we're going to do it in a future presentations but most likely most people are going to connect if this was their actual business now I recommend if you're following along with a practice problem with your own data that you download the data from the your financial institution the way we're doing here which will show you in a future presentation and then we'll upload it if you're running this live and this is your you're on the go and you're following along to figure out how you're going to set up the bank feeds then of course most people would connect directly to the bank just make sure that you have your cutoff dates correct in terms of where you want to start your your data that you're pulling into the system if it's a new company file it's pretty straightforward you're going to pull in all the information into the system but if you have a lot of back data then the question is where are your bank feeds going to start make sure you get that cutoff date lined up sometimes that's easier to do by first downloading the data at least for the start and then connecting after that point okay so then they have a ton of different banks and financial institutions it used to be that that only the big banks were kind of here and then but now all like a lot of banks are included and even PayPal and what not is included here which is really really nice because because PayPal used to be like an intermediary type of thing now people are using PayPal as basically a bank they're paying a lot of the expenses through the PayPal and so it's nice to have that there as well so you can you can show more down here here to find your institution you can type in up top whatever chase let's say bank and then obviously you can go into your chase bank and then it says sign into the account start by connecting your chase bank account with into it the makers of QuickBooks and so on so then you've got your connection issue so when you go through the connection each financial institution might have a different verification process but most of them are pretty straightforward these these days so there's going to be an online verification you're going to have to log into the account and so on to make sure that it's an accurate connection and then you should be good to go worst case scenario you might have to call your financial institution and say that you're using QuickBooks online but usually it's pretty pretty streamlined for most of the big banks and it's more it's getting more and more streamlined for many smaller banks as well and then of course once that is done I won't go through that process now because we're going to upload the transactions and I'll show you how to do that in a future presentation how to download the transactions from the bank how to get how to get this data file or a CSV file that possibly you can use to then upload to the system but once you do upload then we will end up with the items in the the banking transactions for for the bank feeds such as this and we'll have our card up top and then all this information will be in bank feed limbo which is what I called before so it's waiting for that added information accounts to be assigned to vendors and customers so it can then be used to pull into the creation of the financial statements balance sheet income statement or used to verify double check the transactions we have entered for cash helping us with the bank reconciliation process so we'll go into that in more detail we'll be uploading our show you how to download the data file from your bank in a future presentation and then we'll upload that information into QuickBooks for our practice file