Bank Statements

Manage bank transactions and reconcile in QuickBooks Online

Keeping your bank records accurate is essential for your business books. Whether you download transactions from your bank or enter them manually, understanding how to handle the data in the Banking section and the account register ensures your reports are correct.

Downloading bank transactions

You can connect your bank or credit card accounts to QuickBooks Online to automatically download transactions. This saves time and reduces data entry errors.

• Connection requirements: You must be online to download transactions. QuickBooks cannot fetch data from your bank while you are offline.
• Transaction history: Most banks allow you to download up to 90 days of transaction history when you first connect. If you need data older than what the bank provides, you will need to enter those older transactions manually.

Uploading transactions manually (CSV)

If you cannot connect your bank, or if you prefer to upload data, you can use a CSV (Comma Separated Values) file.

• Formatting: QuickBooks requires specific formatting for CSV files. If the system does not recognize your file, check that the columns and data types match our requirements.
• Troubleshooting: If you encounter errors, try copying your data from your current file and pasting it into our sample import template. This ensures the headers and structure are correct before you upload.

Handling transactions in the Banking feed

Once transactions are in the “For Review” tab, you need to accept them into your books. You can do this by adding them directly or matching them to existing entries.

• Matching deposits: When you receive payments for invoices, you should first record the payment (which posts to Undeposited Funds) and then create a Bank Deposit. When the downloaded deposit appears in the feed, match it to the Bank Deposit record you created.
• Teller deposits: If you have manually entered your deposits correctly to match your bank statement, you can generally exclude downloaded “teller deposits” or batch deposits from the feed to avoid duplicates. The key is ensuring your manual records align with the bank statement.

Entering transactions vs. entering statements

You do not enter the bank statement itself into QuickBooks. Instead, you use the bank statement as a reference tool.

• Individual transactions: Enter individual transactions using forms like Expense, Check, Bill, or Receive Payment. You can also use the “New” button to create these entries.
• Reconciliation: The bank statement is used during the reconciliation process to verify that the transactions in QuickBooks match the bank’s records.

Managing missing or extra transactions

Sometimes you may see a transaction in QuickBooks that is not on your bank statement, or vice versa.

• Transactions in QuickBooks but not on the statement: If a transaction is in the register but not on the statement, do not delete it immediately. It may simply be a check or payment that has not yet cleared or presented to the bank by the payee. You still need the record to show that the funds were spent.
• Transactions on the statement but not in QuickBooks: If a transaction appears on your bank statement but is missing from QuickBooks, you can add it manually.
• Removing incorrect entries: If you verify with your bookkeeper that a transaction in the register is truly an error or a duplicate—and it has not been used for tax filings or other reports—you can delete it from the register to clean up your data.

Reconciling your accounts

Reconciliation is the process of matching your QuickBooks records to your bank statements to ensure everything balances.

1. Select the Settings gear icon.
2. Select Reconcile under the “Tools” column.
3. Choose the account you want to reconcile from the list.
4. Enter the Beginning balance and Ending balance from your bank statement.
5. Follow the on-screen prompts to match and clear transactions.

If the difference is zero at the end of the process, your account is reconciled.