Two clients in the last two weeks called me with questions regarding the Online Banking feature so I’d like to explain how you use this feature. This does not replace doing a bank reconciliation, but it does help you track cash flow – you know what’s cleared and what has not. And, it can catch problems before month-end if you check this periodically (weekly, every two weeks… I have some that do a daily). This can also be a faster way to add some transactions into your banking registers.
Since how you download from a bank varies depending on the bank, I’m going to simply focus on transactions that have already been downloaded into QuickBooks and what to do next. There are actually two different ways that you can match these transactions (if you’re in 2009 or higher) with what is in your register or add or delete transactions. So I’m going to start with the newer method (Side-by-Side Mode) for today and will discuss the other method (Register Mode) in another blog.
When transactions have downloaded, in the Items Received section, you’ll see that the account is a different color and you’ll see the number of transactions that have actually downloaded for you to review.
Click on the highlighted number and you will enter the Side-by-Side Mode.
In the Side-by-Side Mode, on the left is a list of transactions. QuickBooks tries to match the downloaded transactions to your existing transactions. So if you look at the top, where it says Downloaded Transactions, you will find that there are eight transactions QuickBooks tried to match to existing transactions, another transaction using a renaming rule and one transaction that’s not matched.
When you click on Show, QuickBooks displays the matched transactions; you can click to confirm each matched transaction. If this is a long list, you might want to click on the Add Multiple button down below. Deselect any that have been mismatched and then click Add Selected.
Renamed transactions are a way of simplifying downloaded names. For instance, if you shop at Staples, the downloaded transaction will not only list Staples but also the store number. You can have QuickBooks simply enter “Staples” instead of Staples and the store number.
For any unmatched transactions, simply click on the unmatched transaction on the left, then select a Vendor Name and Account on the right. If you click on Show Splits, you can also add a Memo, Customer: Job and Class.
Once you have matched all your transactions you can click on Done or, if you don’t finish matching transactions, you can click on Finish Later. For transactions that have been matched, QuickBooks will place a lightning bolt in the Cleared Column to indicate the transaction was matched.