Import Bank Transactions Into QuickBooks Online

Importing bank transactions into QuickBooks’ small-business software is simple. For many people, it’s as easy as using QuickBooks Online to log into their bank or credit card accounts. However, there are sometimes challenges and limitations with importing transactions.

This article will help you to QuickBooks Online Banking and provide you with detailed instructions on how to use it to import your bank transactions so that you can get the most out of your business accounting software.

QuickBooks Online Banking (Bank Feed) Feature

With QuickBooks Online, bank transactions can be imported by the Banking (or bank feed) feature. This feature has two distinct purposes such as reconciliation and facilitating data entry.

Reconciliation

With the help of the banking feature, you can reconcile your business’s bookkeeping to your bank records, almost in real-time. Updates frequently take up to 24 hours to appear, depending on how your bank communicates with QuickBooks Online. Even with this delay, daily or even weekly reconciliation using the Banking feature is still faster than the traditional reconciliation method of waiting for your bank or credit card statement to arrive in the mail. By expediting the reconciliation process, you can identify potential fraud or an unexpected overdraft much earlier than if you wait until your credit card or bank statements come at the end of the month.

Remember that although the Banking feature allows you to quickly reconcile your bookkeeping with your bank’s records daily, it does not take the place of the traditional monthly reconciliation of your accounts against the statements generated by your bank. Doing a thorough reconciliation of your accounts each month is important, even if your bank balance and QuickBooks figures line up after you have finished accepting or matching transactions.

Data entry

For their bookkeeping, a lot of QuickBooks Online users just use the Banking feature. This may cause serious errors in your books.

You may speed up your bookkeeping by reducing the amount of data entry required by using the Banking tool to import bank transactions into QuickBooks Online, especially for recurring automatic transactions. However, you have to remember that this is a reconciliation feature that means to compare your books with your financial institution’s records.

Certain transactions should always be “matched” to the transaction in the bank feed as it clears the bank. Examples of these transactions are checks you have made, payments you have received from customers, and asset purchases. This can help you stay on top of your actual accessible cash amount and avoid errors in your bookkeeping, particularly in the case of checks that haven’t cleared the bank yet.

However, this does not mean that you must resume entering manual data for each transaction. Various programs, such as Bill.com and Receipt Bank, can link to these “lagging” transactions and push them into QuickBooks Online on your behalf.

The lesson from this section is to help with some data entry using the Banking feature but avoid the temptation to conduct your bookkeeping entirely with imported bank transactions.

How to import bank transactions into QuickBooks Online

Importing your bank transactions into QuickBooks Online is what we will now address. To do this, there are two methods:

  • Connect directly to your financial institution
  • Import from Excel

A step-by-step guide for each method is provided below.

Connect a connection with your financial institution

In QuickBooks Online, the simplest and most dependable method of importing transactions into the Banking feature is to connect your bank and credit card accounts. It is also safe; even if someone manages to get access to your QuickBooks Online subscription, they cannot access your bank accounts because your bank login details are encrypted and protected.

  • You can click on Banking from the Dashboard.
You can click on Banking from the Dashboard
  • Then you have to click on the Add Account button.
Then you have to click on the Add Account button
  • Type the name of your financial institution or the URL to access your account. You can choose the correct option from a list of options that appears in a drop-down window when you begin typing the name of your financial institution.

Alternatively, you can click on the image of a well-known bank that is displayed on this screen.

Connect an Account
  • Enter the required information and click Continue.
Connect an Account
  • A list of accounts to connect to will appear from this point on. Each account’s current balance will be displayed; however, for privacy purposes, this has been redacted on the screenshot. To import transactions into QuickBooks Online, you have to choose the accounts you want to use. Make careful you only connect your company accounts if you have personal and business accounts at the same financial institution. Maintaining financial segregation between your personal and company affairs is important for good accounting.

You will be asked to choose the account type from a drop-down menu when you pick each account. Connect every account from which you are importing transactions to the bank account that matches the entry you have made in your chart of accounts. By selecting “add new” at the top of the drop-down list, you may also add the bank account on the spot.

Choose the start date that you wish to use in order to pull transactions lastly. Be aware that the amount of transactions you can import may be limited by your bank.

Click Connect after choosing the account or accounts you wish to connect to.

Connect after choosing the account
  • The import of bank transactions will start. Depending on how many transactions need to be imported, this can happen almost instantly or take a few minutes. After finishing, you will be taken back to the Banking screen, where you can begin matching or adding the imported transactions.
Bank and Credit Card
  • To speed up this process moving forward, you can create rules as you are adding or matching your transactions. Rules are especially useful for automatic, recurring transactions (such as bank fees and subscriptions) for which you may not have receipts. Click “Create rule from this transaction” after selecting a transaction (in this example, the “12/27/19 Account Maintenance” transaction).
create rules as you are adding or matching your transactions

You can now set the conditions that will be used to apply the rule. To have the transaction visible in your bank feed while having it automatically categorized according to the rule, we advise using the “Auto-categorize and manually review” option. This lessens the duplicate entries and misclassification problems. Once you have finished configuring the parameters, click Save to put the rule into effect and go back to the Banking screen.

Following the initial setup of your financial institution, daily automated import of your bank transactions should occur. However, there may be times when you need to update the connection.

To begin, select the Update button. See whether any new transactions are automatically brought in by giving the connections a few minutes to refresh.

select the Update button

Reconnecting the bank feed is sometimes necessary. This usually occurs when you change your financial institution’s login credentials. If this occurs, select the pencil icon by the account that requires reconnecting.

select the pencil icon by the account

Next, you have to select Edit sign-in info.

In rare cases,

In rare cases, you might need to completely disconnect the account from Banking before reconnecting it. Match or accept any transactions that are presently waiting for you in the bank feed before moving on to the next phase. If not, they will be deleted when you disconnect the account

Then you have to click on Edit account information.

click on Edit account information

Next, click Save and Close after checking the option that says “Disconnect this account on save.”

Disconnect this account on save

Now, to reconnect the account, follow the previous steps one through seven.

Also Read: QuickBooks Connection Diagnostic Tool

Import transactions into QuickBooks from Excel

It could sometimes be necessary for you to manually import bank transactions into QuickBooks Online. This may occur if your financial institution does not interact with QuickBooks Online, or — less frequently — if the start date of your import is earlier than the date from which QuickBooks Online can pull transactions.

Step 1: Find the option to download or export transactions by immediately logging into your bank or credit card account. Transactions must be exported in the OFX, QFX, CSV, or QuickBooks Online formats. Look for an Excel export option if your bank doesn’t export to any of these formats. An Excel file may be simply converted to CSV format, which you can then use for your import.

Since every financial institution is unique, it might sometimes be challenging to locate the export transaction choice. To find the export option, you might need to look at a little or get in touch with the customer support division of your financial institution.

A lot of banks have limits on how far-back transactions can be exported. Look for PDFs of your statements for the months you still need to import into QuickBooks Online if you need to export transactions further back than what your bank will allow. MoneyThumb offers a tool that can transform data from PDFs into a file you can import into QuickBooks Online if you can get PDFs of the statements for those months but are unable to export all the transactions you require from your bank.

Step 2: You must save the file as a CSV file if you have to export your bank transactions into Excel rather than QFX, CSV, QuickBooks Online, or OFX. Open the file you downloaded from your bank to do that, then:

  • Begin by clicking on File
  • Select “Save As.”
  • Select the location where the file should be saved. You have the option to click on Browse or select from the file list that displays.
  • Change the file name (if preferred) and select CSV (Comma delimited) under “Save as type.”
  • Lastly Press Save.

Step 3: Your transactions can now be imported into QuickBooks Online. To connect to your financial institution, go to the Banking screen as in Step 1; but, this time, click the down arrow next to the Update button and select “File upload.”

connect to your financial institution

Step 4: Find the file you wish to upload by clicking the Browse option, then select Next.

Step 5: Click Next after selecting the account to which you wish to upload the transactions. Click “Add new” at the top of the drop-down list to add the bank or credit card account where you are uploading the transactions if it is not already included in your chart of accounts.

Click Next after selecting the account

Step 6: The columns in your CSV file must now be mapped to QuickBooks. Be careful here, as the improper mapping will cause your transactions to import incorrectly..

You have an option to indicate the first row of the CSV file as the header row (a). Generally speaking, this will be the case, but verify sure there are no data imports required in Row 1 by double-checking your CSV. Also, you must specify if your debits and credits are listed in two or one column (b). You must map your debits and credits separately if they are in different columns (c).

Click Next when you have finished mapping.

Click Next when you have finished mapping

Step 7: You will see a preview of the transactions you are going to import on the following screen. We advise selecting all transactions by default in QuickBooks Online unless you are certain that your CSV file contains duplicates. After verifying that the data matches the CSV file you are using for the import, click the Next button.

Select CSV Transections to Import

Step 8: A pop-up box informing you of the number of transactions that will be imported will now appear. If you are ready to finish the import, click Yes. Click No if not. When you are ready to move forward, you will have to restart Step 3 of the import process if you select No.

restart Step 3 of the import process if you select No

Step 9: After the import is finished, a screen asking you to approve your transactions will appear. When you see the Banking screen, click “Let’s go!” to start matching or adding transactions.

Things to Remember When importing transactions into QuickBooks Online

Importing transactions into QuickBooks Online is simple, but there are a few things you should know before you start.

Overwriting existing banking transactions

Before manually importing new transactions using the Excel import tool, you must accept any existing transactions that are present in the Banking tab. If not, the import will overwrite the current transactions, and you will need to manually change them before you can accept or match them.

Duplicate transactions

There is a chance that some transactions will be unintentionally duplicated when importing bank transactions into QuickBooks Online. You can quickly remove duplicate transactions from your bank feed if you find that you have imported duplicate transactions.

Click the down arrow next to the “Batch actions” button after selecting the duplicate transactions.

selecting the duplicate transactions.

You have to click on Exclude selected.

click on Exclude selected

The transactions you have chosen will no longer appear on your Banking screen. You can restore the transactions by clicking on the Excluded tab, choosing the ones you wish to restore, and then using the “Batch actions” option to undo the exclusion if you subsequently find out they weren’t duplicate transactions.

undo the exclusion

Opening balance equity

QuickBooks Online will enter the account balance as of the initial import date into an account called Opening Balance Equity when you import your transactions by establishing a connection with your financial institution. This item won’t affect your reconciliations if there was no data for the bank or credit card in QuickBooks Online before the import. It will actually make the process of your first reconciliation simpler.

The Opening Balance Equity entry, however, will affect your subsequent bank reconciliation if you have been manually entering or importing your transactions and then link to your financial institution.

Once you have connected to your financial institution, if you’re having trouble with your initial reconciliation, look for the Opening Balance Equity account in your chart of accounts. To view the account’s transactions, click “View register.”

To “unreconcile” a transaction, locate the opening balance entry for the account you are trying to reconcile. Then, click the “R” until the field is empty.

unreconcile a transaction

Go back to your reconciliation now and check if you are able to reconcile. You can remove the account’s Opening Balance Equity entry if you can reconcile the account at this point. However, if you are still having problems with the reconciliation, ask your accountant or bookkeeper for assistance.

Conclusion!!

Importing bank transactions into QuickBooks Online is an important task for maintaining accurate and up-to-date financial records. Whether you’re importing transactions manually or setting up automatic bank feeds, mastering this process will save time, enhance financial transparency, and empower better business decision-making. If still faces issues connect with the help desk.

Frequently Asked Questions (FAQs):

Q1: What types of files can I use to import bank transactions into QuickBooks Online?

Ans. You can import bank transactions into QuickBooks Online using CSV, QBO, OFX, and QFX files.

Q2: How do I prepare a CSV file for importing into QuickBooks Online?

Ans. Ensure your CSV file includes columns for the date, description, and amount. Format dates in the MM/DD/YYYY format, separate deposits and withdrawals into different columns if needed, and remove any unnecessary data or headers.

Q3: Can I import credit card transactions the same way as bank transactions?

Ans. Yes, you can import credit card transactions into QuickBooks Online in the same manner as bank transactions, using the same file formats and procedures.

Q4: What should I do if my bank isn’t listed in QuickBooks Online’s automatic bank feeds?

Ans. If your bank isn’t listed, you can manually upload your transactions by downloading the transactions from your bank in a supported file format and then importing them into QuickBooks Online.

Q5: How often should I import my bank transactions?

Ans. It’s recommended to import your bank transactions regularly, at least weekly, to ensure your records are current and to simplify the reconciliation process.

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