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QuickBooks Online: Getting Started Part II

January 15, 2019

Last month we covered lots of ground in regard to QuickBooks Online accounts. But, there are still a few issues to cover such as transactions imported from your banks and how to work with them.

In last month’s newsletter, we covered basic steps for financial transaction management after they were downloaded into QuickBooks Online. We went through the mechanics for connecting online to credit card companies and banks. And we showed you the process for reviewing those imported transactions, including the following:

• Categorizing the transactions and labeling them as billable

• Adding the transactions to a specific account register and matching the transaction to similar and related transactions or moving the transaction to a different account

• The use of Batch Actions for processing related groups of transactions.

Last month we looked into QuickBooks Online’s Banking features. These include working with related transactions as groups.

For this month, we take a look at how to set up rules for automatically classifying transactions as they arrive from the bank accounts. We also give you a short overview of the Chart of Accounts.

Bank Rules

Because you will be importing lots and lots of transactions from banks, QuickBooks Online automatically makes assumptions about how these should be categorized. This can be a great time saver. QuickBooks is not always right but you will spend less time correcting the errors than inputting all of the data one at a time.

QuickBooks will essentially memorize transactions that occur on a regular basis. Not only does this atomization feature save you time but it improves accuracy as well.

And, one more way that QuickBooks automates the process is with Bank Rules. You can tell QuickBooks what rules to follow when it scans incoming transactions that all share unique features. This can be a great time saver when you import lots of bank transactions. Here is how it works.

Go to the navigation toolbar and click Banking. Next click Bank Rules. This is where rules that you have created will appear.

In the right upper corner of this screen click New Rules. Here is where you will specify for QuickBooks what actions to take based on specific conditions that are met. As shown in the example in the image below, the action to be specified would be to assign a Category, Payee, or Transaction Type. Another option is to automatically add the transaction to your books.

In QuickBooks Online you can assign a Category, Payee, or Transaction Type automatically when specific conditions are met.

If you process lots of bank transactions in your business, this is an excellent QuickBooks feature to learn as it will save time and reduce errors. But, if you make a mistake or two in setting this up the time it takes to untangle the mistakes may be substantial. Please feel free to contact us at Exigo Business Solutions for help in learning this task on QuickBooks Online.

Account Registers and Chart of Accounts

In this and last month’s newsletter we have looked at transactions as they come directly from financial institutions. This step is before the transactions show up in the account registers. After you review and make changes as needed to the imported information (For Review on Banking) you will click Add. This sends the transaction to the account register for that specific transaction.

If you have been doing business long enough, you will recognize how much the site registers look like the checkbook registers you used to fill out for each and every check.

QuickBooks Online gives you two ways to see the account register. ON the Banking page there is a link on the right named Go to Register. When you click this link you will navigate to the account that is currently active.

It is also possible to open the account registers when you are in the Chart of Accounts. This is the heart of the QuickBooks accounting system for your business. It is also a place where you should not be making modifications!

This section contains a comprehensive list of all company accounts. They are divided into income, expenses, assets, liabilities, and equity and include subaccounts as well. Here is where transactions get assigned to the correct account and are then recorded in the General Ledger. This is another area where changes should not be made without expert help from QuickBooks ProAdvisors. And, in QuickBooks Online you will typically not have to deal with this page.

Although it is possible to see the Chart of Accounts for your company in QuickBooks Online, we highly recommend that you do not make any modifications.

On the navigation toolbar click the Accounting tab. Then click Chart of Accounts. Here is where you will see listings of individual bank accounts as well as a link for View Register.

Very Important

Although you will not be dealing with the Chart of Accounts, it is important to appreciate the process of managing downloaded transactions when you move them to the bank accounts in QuickBooks Online.

As with all bookkeeping and accounting, small errors can multiply into big problems. For this or any other critical business function, check with the experts at Exigo Business Solutions for the QuickBooks training you need to get the job done right.

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QuickBooks Online

QuickBooks Online is a cloud-based multi-functional accounting software suite aimed primarily at small and growing businesses. Its versatile framework makes it easy for users to manage and oversee a wide range of accounting tasks, including monitoring cash flow, reviewing transactions, categorizing expenses, checking invoice statuses, and staying on top of payroll and inventory.
Profit First helps you experience profit.

Ronald B. Allen
CEO, Profit First Professional, Fix This Next Founding Advisor
Principle of an accounting firm that’s committed to educating business owners on their financial health, providing a trans-formative strategy and helping them experience their profit!