How to Link QuickBooks to Bank Account (Step-by-Step Guide)

August 31, 2022

How to Link QuickBooks to Bank Account (Step-by-Step Guide)

Have you been trying to link QuickBooks to bank account? A unique aspect of internet banking, commonly referred to as "bank feeds," can help you save a lot of time and work.

Even though connecting a bank account to QuickBooks is a straightforward process, users may encounter problems and mistakes.

In this article, we'll go into an in-depth discussion on: 

·  QuickBooks connected to a bank account 

·  Advantages of linking QuickBooks to a bank account,

·  How to link QuickBooks to a bank account.

Can you link Your QuickBooks to Your Bank Account?

One of the best and most widely used accounting programs that many businesses use to effortlessly manage cash flow and track spending is QuickBooks. Can QuickBooks be linked to a bank account? Is a query that many new users still have?

As was previously stated, this is entirely feasible because many businesses have taken advantage of this chance to effectively measure and enhance business growth. The best part is that you can connect as many business and personal accounts as you like.

The cloud-based QuickBooks Online and the locally hosted QuickBooks Desktop are the two main categories of products that QuickBooks offers.

This article doesn't include how QuickBooks Online can connect to a bank account; instead, it concentrates on the desktop version. In further articles, we will discuss how QuickBooks Online connects to bank account.

How do I Link My QuickBooks Desktop to My Bank Account?

Many people are aware of QuickBooks' many advantages, yet there is still a troubling query regarding how to link a bank account to QuickBooks. To successfully link your QuickBooks desktop to your bank account kindly follow the following steps:

1. Launching the desktop version of QuickBooks is the first step.

2. Next, go to the banking area and select Add Account.

3. Select the appropriate banking institution from the drop-down menu.

4. You must create a user ID and password to log in to the official website of your bank.

5. When you're ready to move on, click the continue button.

6. Select securely connect if the security verification was successful.

7. After choosing the bank logo, select Account Type.

8. You must choose a bank or credit card.

9. If you're connecting numerous credit cards from the same bank, decide which type to use for each card.

10. Finally, by selecting the Connect option, specify the range of transactions you want to download.

Note: It can take a few minutes to link your bank account to QuickBooks desktop, but certain banks might need more information for security reasons. If this is the case, instructions will appear on the screen telling you what to do next.

Should I Link My Bank Account to QuickBooks?

It is essential that every accounting company links QuickBooks to a bank account since doing so provides the following advantages:

1. Lessen data entering: when QuickBooks is linked to a bank account, you can save a lot of time because the majority of your data entry is eliminated. Every transaction is immediately visible in your QuickBooks Online account when your bank data is directly transferred there.

However, you should check your reports frequently when you first set up bank feeds to ensure that the coding is being done as required and that there are no problems.

Although the syncing and bank feed review processes for QuickBooks Online and QuickBooks Desktop differ slightly, both offer advantages to your team and help you enter transactions more quickly.

 

2. Automate company coding: If you frequently enter your payroll, checks, and other operations directly, now is your chance to "align" those transactions with the line items coming in from your banking institution. 

You can create rules to have QuickBooks application automatically code frequent or recurring entries like fuel, rent, salary, and so forth.

This is an added benefit when you have QuickBooks linked to a bank account, as it saves a ton of effort and guarantees that every transaction is coded consistently. Additionally, you can create bank rules to hasten the transaction coding process.

 

3. Easier access to greater knowledge and clearer decisions: Your business information is accurate after you link your bank account(s) to QuickBooks. This allows you to monitor the progress and health of your company in real time.

Have the privilege of knowing what is coming in and going out of your company's finances in one location. Therefore, you may monitor the progress of your company in real time using bank feeds.

This gives you the ability to manage your cash flow using both current data and forecasts for the future.

Furthermore, QuickBooks categorizes each transaction automatically after matching income with invoices and expenses with outgoings. This ensures that there are never any surprises and that your firm operates efficiently.

What Happens When You Link your Bank Account to QuickBooks?

QuickBooks needs access to your bank accounts to download transactions. Sort transactions into categories and enter them into QuickBooks to enable QuickBooks to start working for you.

When you are connected, all of your accounts with this bank will be visible. Select the account you use for your business and identify its type for QuickBooks. The last 90 days' worth of transactions will be downloaded by QuickBooks, but they won't be present there yet.

You are responsible for reviewing and categorizing your spending after the first QuickBooks download of your transactions.

To arrange the transactions, select the Category or Match column on the Banking page. You can see the areas where QuickBooks attempted to categorize some transactions.

To access the first transaction in the list, click it. To save the transaction, proceed to click on Add.

On your dashboard, you may view an overview of the performance of your company. You may also run reports like the Profit and Loss report, which will provide you with more information about how your expenses are broken down and how much money you're spending overall on various aspects of your business.

Furthermore, the percentage of your revenue that your costs represent might be seen on the QuickBooks desktop application.

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The previous method involved downloading cumbersome CSV files with disorderly, jumbled data. Why LiveFlow is practical: Google Sheets allows for the straight import of data from QuickBooks.

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