Biggest Mistakes With Quickbooks Online Bank Feeds
If you are new to QuickBooks or have been using it for a little you have figured out that there is a banking center where you can connect QuickBooks Online to your bank and credit card accounts. We call that the Bank Feeds. Did you know that there are quite a few mistakes that small business owners make with their Bank Feeds? Let’s look at a few.
The most common mistake that small business owners make with bank feeds is thinking that it is the only way to do your bookkeeping in QuickBooks. QuickBooks Online is a small business accounting software with lots of bookkeeping functionalities. While the bank feeds are very helpful, this is just one of the ways in which you can do your bookkeeping.
The second mistake is very common among small business owners with their bank feeds in QuickBooks Online. When going through all of the transactions that are downloaded from QuickBooks, users tend to just click “add” on every transaction. Those transactions are not yet categorized into QuickBooks. However, they need to be categorized first before you click add. What happens when you’re clicking “add” on every transaction, you end up with a bunch of transactions in uncategorized income and uncategorized expense in your reports. At this point, you’ll have to go through every transaction and re-categorize it.
What you actually need to do is to look at the transactions that are downloaded from the bank and review the account category on each transaction, to see what it was for. If it was for a hotel expense, for example, then you might need to categorize it to travel. Or, if it was an office supply type of expense, you would put it to office supplies or to office expenses. You never want to categorize anything to uncategorized expense or uncategorized income.
The third mistake that small business owners make with their QuickBooks Online Bank Feeds is that they let them accumulate for months at a time instead of working on them every day. You can do that very easily because you probably don’t have that much activity on a daily basis. It’s much easier to work on it 5 minutes a day than putting it off.
Now that you’ve had a chance to read the Biggest Mistakes With Quickbooks Online Bank Feeds, what are your thoughts?
Looking for more bookkeeping information or tips? Check out our post on 5 Common Bookkeeping Pitfalls – and How to Avoid Them