Along with a full list of benefits, QuickBooks Online also has the option of using online banking. It allows users to complete transactions and other services while being connected to their banking and financial institution. This is called the QuickBooks online bank feed facility and helps a lot of people who would like to save time and gain more efficiency when making payments with various bank-related transactions such as debit cards or credit cards.
This is one of the core aspects of QuickBooks Online which gives it a major advantage over its desktop counterpart. This has provided a lot of influence on people to choose the online version instead of the QuickBooks desktop. It has undergone several amendments in the last few years, which have further reduced the barriers due to time constraints. This has helped professional bookkeepers complete their cash-based bookkeeping much faster than the desktop version of QB. If you want instant solution about this topic to join us our QuickBooks Support Team
Learn the basics of QuickBooks online bank feed
Before using the QuickBooks online bank feed facility you have to learn a few things, as well as some requirements. Here’s what you need- a stable internet connection and a bank account in a bank that helps QuickBooks transactions to be sent directly.
Connecting your bank account – Things to note
- If you do not know whether your bank provides such banking services, you can find out about it by opening the list of all banks and financial institutions participating in this service.
- It is currently a very long list, with more than fourteen hundred banking and financial institutions providing this type of support for QuickBooks Online users.
- If you do not already do so, you can also suggest to your FI or financial institution to start offering such online banking transaction services.
- Part of the work your bank does is to control the amount and the nature of the information that QuickBooks Online can get from the user.
Experts recommend communicating with the bank whose account you are about to connect to using the QuickBooks online bank feed. In this way, you can effectively coordinate any details required to set up your account for online banking in QuickBooks Online and QuickBooks Online Plus, such as
- Whatever charges are levied on
- The mode of connection is supported by the bank
- The data required to enable this particular function
It is very important to have all the necessary nuances given to you by your financial institution as you will not have any facility without this facility. You can read more about these three requirements below.
Charges that may be applied
There are no additional costs associated with this in QuickBooks online bank feed, but there may be other fees that may be associated with it-
- Some bank services you can ask your specific bank about
- If you encounter any problems or get messed up somewhere during setup then you may need some expert help.
Method of joining bank feed
There are two ways through which you can connect your bank account with this facility, which is known as-
- Web Connect – This type of connection involves receiving data through a web browsing application after downloading the file.
If you choose this option to complete an online transaction, you cannot use another account to send money to your suppliers or have a separate account that you may have saved here as well.
- Direct Connect – In this option, your QuickBooks Online Plus or QBO can communicate clearly with your business institution and finished tasks.
In this case, what you will need from your bank is a password or a PIN that you will have to download a statement or complete any other transaction every time you enter it.
With the Direct Connect method of setup, you can use various banking services such as paying online to your supplier or distributor. In addition, you can transfer money from one account to another in the same program, provided your banking institution allows it. Hold in mind that not all banks present both Web Connect and Direct Connect, so be sure to ask your bank about this before making your choice.
Information was given by your bank for completion
The following are the different credentials that you are asked to fill before completing the QuickBooks online bank feed setup-
- ID and PIN or Password – The customer ID is unique for each bank account holder so that he/she can properly identify the user entering their account. It can be numeric or alpha-numeric depending on the bank itself, such as your account number or name, and can be called similar to a customer ID such as an online ID or login name.
However, some things to be noted here –
- You cannot have more than one customer ID for a bank in QB.
- You can also set a customer ID for a company file online.
For the direct connect method of connection, the following data may be additionally required –
- Account Number – This is a very important statement that relates to your bank account and is assigned to you while creating it. You can get it printed on your check and statement, but if you are having difficulty in finding it, just talk to your bank about it.
- Account Type – There are some categories of accounts maintained in financial institutions. You should know about the account from which your account collapses so that you can enter this important statement whenever asked.
- Routing Number- This is a nine-digit number responsible for ensuring that all transactions are directed to the correct place to process. This number is also usually present on the check or you can ask the concerned bank representative for more information about it.
In this blog, I tell you the basic information of QuickBooks Online Feed. I hope my information is useful for QuickBooks User. If you want more detail about QuickBooks and our QuickBooks Online Support Services so contact us on our QuickBooks Technical Support Phone Number.