Join Jess Stratton for an in-depth discussion in this video Reconciling online transactions, part of QuickBooks Pro 2015 Essential Training.
- Now that we've downloaded our transactions into Quickbooks, it's time to match them up against our checking account. Maybe there are transactions that you've done in your physical bank that you haven't yet inputted into Quickbooks. A great reason alone to download your physical bank activity into Quickbooks is so you don't have to input information twice. Now, you can reconcile using this banking or you can automatically add everything into Quickbooks directly using a bank feed. The click of a button, you can enter line items into your check register and assign them to accounts, such as categorized expense accounts.
Let's do that right now. Select Banking from the top menu, choose Bank Feeds and then select Bank Feeds Center. Remember, in the last video we downloaded and imported our bank feed. This is going to bring us into that main screen that we saw before the end of the last video. I can see how many transactions are waiting to be added into Quickbooks. This is a result of the download that we did. Click the blue Transaction List button and I can see what we need to import into Quickbooks. I can the list of transactions that directly came from my physical bank statements.
If Quickbook finds any that definitely matches transactions in my checking check register, it's going to automatically match those. So anything that shows up in this list that doesn't have a check mark next to it are things that it doesn't recognize, that is, things that doesn't already have a corresponding line item to, to which the dollar amounts here must match those that are already in my check register. A quick way to see what it's already matched is to click All from the status bar and change Auto-Matched. It's going to show you accounts that automatically matched up to transactions that were already in your check register.
For example, the type DEP tells me that it was a deposit on September 11th, and here's the deposit amount. Now in my check register in Quickbooks, I've already processed this as a payment and made the deposit on this date. So Quickbooks already has a transaction matching that balance total and that's how it knew to automatically match it. So the numbers matched and Quickbooks didn't need me to do it again. This time, I'm going to select Needs Your Review from the status because I don't need to see what's automatically matched anymore.
I only see what I have to handle now. These are things that I need to bring over manually and enter into Quickbooks. Let's look at this Wharf Central payment. This one came from my debit card and it was for $167.52. Now, I pay this company for advertising to promote my olive oil in their shop. So I'm going to add that to Quickbooks. In the Action column, clicking in the field will bring up a drop down list. I'll select Add More Details.
This is going to bring up the Add More Details screen and now I can input information about this payee. Now, Wharf Central currently doesn't exist into Quickbooks. I can see my list of all my vendors and my customers. So I'm going to type it in. Because Wharf Central is not in the name list, I get this same Quick Add or Setup button that I've gotten whenever I manually type in a name. In this case, I'll put Quick Add and I'm going to tell Quickbooks that Wharf Central is a vendor.
Click okay and now I can specify the account that this money is going to be tracked using. Now this is an expense account. They put flyers up for me. So I'm going to put this under Advertising and Promotion. When I'm all done, I can click Add to Quickbooks and now I get prompted to Create A Rule if I want to. Anytime I download a transaction, if the description contains Wharf Central, Quickbooks can automatically rename the payee to Wharf Central and change the category to Advertising and Promotion.
The nice thing about setting up this rule is that Quickbooks will automatically match this the next time it comes into Quickbooks. I'm going to click Okay. Now I can go through and change all of these, match them up and put them into Quickbooks. If I have a really long list and there's no way I could get to it in one sitting, I could click Finish Later on the top left. I'll click No to confirm all matched transactions to my register and now I'm going to close out of the transaction list.
I'm brought back to the home screen. At anytime, I can select Banking, Bank Feeds, Bank Feeds Center, and go back to my transaction list to return to marking all my transactions into Quickbooks. This is great because at anytime I go and look up a transaction if I'm not sure what account is selected to or if I'm not sure what that purchase actually was and then I can come back. So if you have a short list of transactions you can get them all done at once or if you have a very long list, you can keep coming back when you have some free time and just whittle down that transaction list.
I've personally found that I'm most likely to stay on top of it when I make myself do it at a regular basis downloading these transactions. That way, the list doesn't get too long and I don't have to do it in lots of sittings.
- Setting up a new company file
- Working with the chart of accounts
- Adding bank accounts and credit cards
- Adding service or inventory items
- Setting up sales tax
- Adding customer, vendor, and employee profiles
- Billing customers
- Receiving payments
- Recording deposits
- Handling refunds and credits
- Paying employees
- Sharing QuickBooks with others
- Running reports