Online banking has been around for a long time as a feature of QuickBooks, but surprisingly, only a small percentage of users take advantage of it. This is most surprising because the savings opportunities and other great advantages may arguably make this one of the best reasons to own and use QuickBooks.
Why should I use Online Banking?
- It means less time typing – with online banking, transactions that you don’t have time to enter into QuickBooks as they happen are downloaded into QuickBooks directly from your financial institution. You only have to review them instead of entering them from scratch. This reduces your bookkeeping costs dramatically.
- It speeds up the monthly bank reconciliation process – this is because every time you send and receive transactions, QuickBooks matches what is received from the bank against your QuickBooks register and leaves unmatched items readily available to research and correct. This reduces the time to do the reconciliations at the end of the month dramatically.
- It keeps your books accurate and up to date – when you download transactions, QuickBooks compares them to the transactions already in QuickBooks and points out any discrepancies. You can easily add missed transactions and check the rest for accuracy without having to search for them in a paper statement. When you reconcile your accounts at the end of the month, you only have to deal with exceptions, not all your transactions once again. Having up to date books help you spot and correct problem areas fast before your bank account is depleted. Because you are always reconciling as you go, there is no need to wait to receive paper bank statements to close your books. You can get month end reports the first of every month instead of having to wait as much as 10-15 days.
- It helps you understand your cash flow – since you always know which checks have cleared your banking account, you also know how much money you have available. At some financial institutions, you can also transfer funds between online accounts when you need to.
Is Online Banking Secure?
Online services in QuickBooks are very secure. Online banking is protected with a password that is issued only to you. To download transactions, QuickBooks uses a secure Internet connection and high-level encryption.
Also, if several people use QuickBooks, you can restrict others from using online services.
How Do I Get Started?
First you will need access to the Internet from QuickBooks and a banking account at a financial institution the offers online services for QuickBooks. You will also need to make sure that the bank allows transactions to be originated from QuickBooks. Also, verify the cost, which is usually nominal. It typically takes from five to ten working days for the bank to send you the logon information you need to set it up in QuickBooks.
Adapted from Intuit QuickBooks Support