How to Add a Bank Account in QuickBooks?

Before you proceed with using your bank account and performing all the much-needed account procedures, you will need to make sure if you have a bank account and opening balances recorded in QuickBooks.

There is no denying the fact that QuickBooks has been the most useful software for small and medium-sized business to handle their accounting and financial activities at ease. 

Even though you don’t have an accountant or someone professional to handle finances, QuickBooks gives you the ease to learn and understand complex accounting terminologies with ease.

if you have a bank account, reconciling your bank accounts in the software plays an important role.

It ensures that you have linked your account with that of your QuickBooks software, making it easier to understand your finances, tracking your expenses and income without any complications.

Role of Bank Accounts in QuickBooks Services:

Role of Bank accounts in QuickBooks Services

To perform accounting processes at ease, one must ensure to reconcile bank account in the software.

Whenever you set up the account, it gives you the hint to embedding a new asset account which will get associated with the business charts of the account.

Why Connect your Bank Account With QuickBooks? 

  • It reduced your efforts, saves time and it automatically process import transactions. 
  • If you add the sales receipt, invoices, cash inflow, and other accounting details manually, it will take up a lot of time, energy. 
  • The chances of manually adding the accounting details can also hamper your operation. 
  • You will save yourself from data entry errors, and it will give you the satisfaction of all the details being accurate and up to date.

Pros of Setting up Your Bank Accounts in QuickBooks:

  1. If you enter your bank details and connect them with QuickBooks Tool Hub, the income-related information can be generated automatically. Without you putting your efforts and energy into entering each transaction manually
  2. Your business will be able to make more decisions, work on other key important areas, whilst the bank account has been linked and you need not have to manually record any transactions
  3. Whenever the account gets linked to the software, the details of your transaction for the last 90 days get recorded automatically. This allows you to have access to the accounting details effortlessly 
  4. Data process which seemed like the only option to you, won’t be the only option as you have got an automatic recording of the entries through linking your bank account with the software.

How to Set up the Account in Your Software? 

How to Set up the Account in Your Software

The banking page of QuickBooks handles all the transaction-related details, connecting tasks, and other work.

This particular section is said to be a bank feed that decreases your efforts of the manual transaction to automatic ones.

Saving time and keeping your accounts up to date, giving you the ability to keep a check on your finances whenever needed.

Thus, QuickBooks allows the bank information to get downloaded in no time.

Now, if you are wondering, how to go about the process?

There are 2 ways this can be possible, the direct way and the indirect way of adding manually.

Let’s have a look at each one of them

Direct Connection:

  1. Located your company file in QuickBooks
  2. The drop-down list menu will appear, locate charts of Accounts
  3. Select the accounts button and press on the New option
  4. Then, select an account type and your desired bank, move ahead by pressing continue
  5. Lastly, you will be needed to fill in mandatory details of your account which asks your account name, description, account number, routing number, and your opening balances along with max line mapping, etc. 
  6. Once you have filled in the necessary information, click on save and close.

Add Manually:

  1. In your accounting tab, choose and fill the account
  2. Choose the bank in the account type, details type currency, balances, and date as well
  3. Save the details and close
  4. Your new bank account will pop on the screen
  5. Press View Register and then hit on the Connect Bank
  6. Once you have followed the step, move back to the A2X setting, select refresh QuickBooks Cache

There will also be an option wherein, you will be asked to enable the live banks to feed.

You can click ‘Yes’ and permit them to get all the bank feeds so you are updated with every transaction that occurs.

Whereas, if you don’t want the live feed, you can simply click on the ‘NO’ option and be away from any unwanted notification.

With this, you have understood in detail how you can handle your accounting tasks.

Adding your bank account is not just a great option, but a smart pick for you.

It helps you save time, energy, and give you the ability to work on other important tasks.

Keep yourself updated with all the transactions occurring in your accounts. 

Leave a Comment