Lesson: Banking and Tools Craig’s already set up bank feeds for his checking,

savings, and Mastercard accounts. He just needs to

review the transactions.
Using bank feeds When you match and accept a bank feed item to an
existing transaction in QuickBooks Online, it marks
The story so far the transaction as cleared. When you do a bank
Craig prefers spending time working directly with reconciliation, this means that most transactions are
his clients and improving his business rather than on already marked as cleared. 
hours of data entry in the office. He knows there It’s a big help when you come to run
must be a better way and he’s excited to see how reconciliations.
banking in QuickBooks Online can help ensure that You may find it helpful to have your client’s bank
all of the transactions from his bank and credit card statement to hand so you can compare it to the data
accounts match his records in QuickBooks Online. that you imported.
It’s important Craig gets this right. He needs to Watch the video to see how it’s done. The
make sure all transactions are classified correctly individual steps are below for you to follow.
and included in the books.

Let’s take a look at the basics.

How can QuickBooks Online help? Managing banking
It’s one of the greatest strengths of QuickBooks
Online that bank data can be imported seamlessly, through the mobile app
and easily matched to existing transactions or used
to categorize new transactions. In fact, the system Clients can perform most of their banking via the
gives you indications and has tools so that accurate QuickBooks mobile app. This is a great tool when
transaction entry is made easy.  they’re on the move or short on time.
Let’s go! They can record expenses and receipt images on the
go.
ProAdvisor tip
You will probably use the app yourself. Even if you
How QuickBooks Online don’t, you should know how it works so you can
educate clients and be able to answer any questions
works with bank data they have! Try downloading it from the App Store
or Google Play to try it out for yourself.
The bank feed functionality in QuickBooks Online
is one of its most dynamic features. It links to online
banking and credit card accounts and feeds Best practice bank feed
transaction details directly into the Banking Center,
saving your clients time. But they are still in control workflows
over what goes into their QuickBooks Online.
Transactions are held in a For Review area, where The story so far
your clients can: With your expert coaching, Craig has been
following best practice workflows for all his
 Match and accept transaction details with customer and vendor transactions. Bank feeds is
what is already recorded in QuickBooks where this all comes together as the last piece of the
Online jigsaw slots into place. Let’s see how you can guide
 Categorize and accept transaction details to Craig to follow best practice here.
enter a transaction into QuickBooks Online How can QuickBooks Online help?
that has not previously been recorded The more you use QuickBooks Online banking, the
better it gets at identifying matches for bank
QuickBooks Online has a smart learning system that transactions to QuickBooks Online transactions.
learns from bank feed activity over time as you But for the ones that don’t have a match, you can
categorize and match transactions. It will then easily add them straight from the Banking Center.
automate the process by recognising and suggesting
matches, that you can quickly accept or amend. The
more you work with it, the more independent the Best practice bank feed
functionality will become. These are the items that
appear in the Recognized section of the All workflows
transactions drop-down list in the Banking Center.
You are still in control and will get to approve Craig’s been doing a great job of following the best
recognized transactions. You can see that a lot of practice sales, expenses, and vendor workflows that
the hard work gets done for you. you learned about in modules 3 and 4. This means
Watch the video to see how it works and then that his bank feed is in great shape. 
let’s make a start on Craig’s bank statement to When he reviews his bank feed, for the most part he
see how we can help. wants to match transactions. This way, he is linking
the bank feed item to a transaction that’s already in
his QuickBooks Online.
Matching bank data
Once he’s done this, there might be a few left over  Duplicate income deposit
that QuickBooks Online can’t find a match for.
These could be expenses and/or deposits he hasn’t ProAdvisor advice:
recorded and that aren’t posted in QuickBooks They should have followed the correct sales
Online already. But he can go ahead and add each workflow.
directly from his bank feed. This will create new
posting transactions in QuickBooks Online  Receive payment against the corresponding
straightaway. customer invoice and save the deposited amount
Browse the pic to Undeposited Funds
 Record the deposit transaction based on what
actually was deposited into the bank
Manually adding  Match the bank feed deposit to the actual
QuickBooks Online deposit transaction
transactions Why are my expenses getting duplicated?
Instead of matching checks through banking with
Let’s take a look at how you could help Craig to expenses already entered as checks in QuickBooks
manually add some more items from the bank feed Online, they just added new expenses through bank
into QuickBooks Online.  feeds.
Watch the video to see how it’s done. The ProAdvisor advice:
individual steps are below for you to follow. They should have followed the correct expense
workflow.
1. As before, from within Craig’s QuickBooks
Online account, select For review to go to  Create a check expense in QuickBooks Online
the Banking screen  Match the bank feed check transaction to the
2. Select the entry for $18.08, an expense Craig QuickBooks Online check expense
paid to Mahoney Mugs
Why do I still have transactions in the bank feed that
The entry will expand and you’ll see the are not matching with my transactions in QuickBooks
transaction details, but you need to Online?
categorize this expense. It’s currently They most likely typed a date incorrectly in the
marked as For Review because the bank original QuickBooks Online transaction so the
wouldn’t know how to categorize it. transactions are not getting automatically found or
3. Select the Category drop-down list and recognized in the bank feed.
scroll down to select Advertising ProAdvisor advice:
4. Now select Add to commit this to
QuickBooks Online  Select find match to locate the transaction to
use. 

Bank feeds FAQ Do I need to manually enter prior period transactions,

expenses, and deposits if I haven’t used QuickBooks
Remember that by coaching your clients in best Online before?
practice workflows from the outset, you are helping It’s time-consuming to enter a year’s worth of
set them up for success. But sometimes they get historical checks and deposits using the transaction
muddled and phone you in a panic. Let’s take a look forms.
at some of the common mistakes they make so you ProAdvisor advice:
can help guide them back to the road to success. The simple way to recreate prior period accounting
Select the question to find out more.  data for your client’s QuickBooks file is to:

Why is there a duplicate transaction?  Link your client’s QuickBooks Online to their
Instead of matching to an existing transaction, they bank account and select the appropriate period
ranges, or
added one—and this created identical transactions
Perform a manual bank import for the exact
for the same amount. period you are recreating in QuickBooks
ProAdvisor advice:  Then select Add for each of the transactions
from the bank feed to create the transactions in
 Always match first and check all bank and credit their QuickBooks Online
card transactions to make sure the transaction is
not hidden someplace else Correctly categorizing income and expense
 Once this has been confirmed, add is the second
transactions is key to making certain the prior
option
period data is accurate and ready for the client’s
Why are my invoices still outstanding? review.
Instead of using the correct sales workflow, which
would be to receive a payment against the
appropriate customer open invoice, they just added
a new deposit in the bank feed.
Managing receipts and
This caused two issues: bills
 Open balance on invoice
Introduction There are three ways to capture bills and receipts so
Keeping track of receipts is a common problem that they can be matched to transactions and added
among business owners of all sizes. to the bank feed.
How many times have you come across clients who Select the titles to find out more.
show up at year end with a shoebox full of receipts
they haven’t recorded and that all-too-familiar look Direct file upload
of panic? Another common scenario is clients If you have receipts stored on your computer
looking for a way to automate their bill creation. already (whether they have been downloaded from
How can QuickBooks Online help? an email as an attachment or scanned directly into
QuickBooks Online makes keeping track of receipts your files), you can drag and drop them directly into
and bills much easier for you and your clients. QuickBooks Online.
Users can scan, upload, or even email receipts and To do this, simply use the drop box on the Receipts
bills to QuickBooks Online. Receipts can then be tab.
matched to existing expense transactions or used to Browse the pic
create new ones. Clients can even do this on the Forwarding by email
move via the mobile app. If bills and receipts have been generated or sent to
you or your client via email, you can set up
The benefits of managing QuickBooks Online so that you can forward them
directly to your client’s QuickBooks Online
receipts and bills in account.
Each company can have one unique customizable
QuickBooks Online email address, so you can make sure every receipt
and bill gets forwarded to the right place.
Once the email has been set up, you can forward
Receipt management has always been a challenge bills and receipts as attachments (if you want to
for clients who are busy, on the road, or just a little forward several at once) or within the body of an
less organized than their ProAdvisor would like email (if you’re only forwarding one receipt per
them to be. email).
In many cases, receipts and bills are physical items: If you accidentally send a receipt to an email
easy to lose or misplace or just push into the glove address that isn’t registered with QuickBooks
compartment to file later. They can also be damaged Online, you’ll get a notification email.
or torn, or fade over time, making them illegible. Browse the pic
And then there’s the actual chore of managing and
storing them. This usually means attaching hard Via the mobile app
copies to credit card statements or putting them in The QuickBooks Online mobile app is especially
envelopes, which get filed into boxes. handy for small receipts like café receipts or card
For a busy business owner, this process often takes transactions in stores.
a back seat to other tasks like winning a new Simply open the app, take a snapshot of the receipt,
contract or making a sale. When period end rolls and the file will be uploaded to your account.
around, your client’s receipts and bills have piled up Browse the pic
and it takes a lot of work to make sense of things.
Often that work falls on your shoulders rather than
the client’s. Optical Character
The new Receipt Capture feature in QuickBooks
Online means receipts and bills can be scanned, Recognition (OCR)
snapped, and added and managed in QuickBooks
Online. No matter which method you use, QuickBooks
And what’s more, it can be done in all subscription Online uses OCR to scan receipt files once they
levels, from QuickBooks Online Simple Start have fully loaded.
through Advanced. The OCR technology scans the information on the
The Receipts tab in the Banking Center is the home receipt and extracts the necessary data to build a
of adding and tracking receipts and bills. transaction record.
Once a receipt or bill is in the Receipts tab, you can You’ll be able to check this information and amend
review, edit, add, or match it. We’ll look at this in it where necessary before accepting and adding the
detail in a moment. transaction—just as you check and match a
Browse the pic transaction within the bank feed.
ProAdvisor tip
QuickBooks Online accepts a range of different
The Receipt Capture image file formats including PDF, JPEG, GIF, and
PNG.
workflow
Logging bills and receipts and matching them to
transactions is similar to the banking workflow and Setting up receipt
can be viewed within the Banking Center.
forwarding
Let’s walk your client Chris Grier through the first
way to get a bill or receipt into QuickBooks Online. Capturing bills and
He’s collected some receipts and is ready for you to
enter them. With email bills, Chris or you can just receipts in the mobile app
forward the email to a customized QuickBooks
Online email address. The details are then picked up Chris is delighted when you tell him that he can just
by the character recognition software and added to snap a photo of his receipts on his phone when he’s
his QuickBooks Online Receipts tab. out on a job.
As a ProAdvisor, if you’re working with multiple You’ll be delighted too when you no longer have to
companies, you can create one unique customizable sift through the contents of his glove compartment.
email address per company to make sure every Right now, he has a coffee-shop receipt he’d like to
receipt and bill gets forwarded to the right place. add to his account. Let’s take a look at how he can
Let’s take a look at how we can get Chris set up add this to his QuickBooks Online while he’s on the
with receipt forwarding. move.
Watch the video to see how it’s done. The Watch the video to see how it’s done. The
individual steps are below for you to follow. individual steps are below for you to follow.

1. In order to make receipt forwarding active, 1. First, open the mobile app on the device
you’ll need to enable your email address 2. Select the + button and select Snap receipt
within Chris’s QuickBooks Online 3. The app will link to and open the camera on
2. Navigate to the Banking Center then the phone
select Receipts at the top of your screen
3. Select Forward from email Note that QuickBooks Online frames the
4. Enter the email address you want to use for receipt so that you can make sure you
your client capture all of the information needed,
5. Select Customize email including the date, merchant name, and
6. Select Done amount.
4. Once satisfied, tap the capture button on the
Make sure you think carefully about which email device. You will have the opportunity to
address to use, because once you set up an review the image before saving it
@qbodocs email address, it can’t be changed. 5. Drag the corner markers to fit the receipt
When emailing receipts, you can include multiple and select crop
receipts in the same email, so long as they are 6. If everything looks OK, select Use this
separate attachments. QuickBooks Online can only photo
recognize one receipt at a time when they are sent in 7. QuickBooks Online uses optical character
the body of the email rather than as an attachment.  recognition (OCR) technology to read and
transform the data to QuickBooks Online

Uploading bills and The app also uploads the image of the
receipt directly into QuickBooks Online.
receipts
You can only process one receipt at a time in
You or Chris can also upload bills and receipts from this way. The OCR function cannot identify
your computer or by snapping a picture of them on more than one bill or receipt on an image at
a smartphone using the free QuickBooks Online a time.
mobile app.
Chris needs to pay $480 for his website hosting. While the details uploaded into QuickBooks
He has already downloaded the bill and needs to Online are dependent on the scanned
save it to his QuickBooks Online account. information on the mobile app, you can
Watch the video to see how it’s done. The update any missing or incorrectly mapped
individual steps are below for you to follow. fields directly in the For Review section in
QuickBooks Online.
1. Make sure you have the file location open
on your Desktop so that you can easily
access the file Reviewing, matching, and
2. In QuickBooks Online, navigate to
the Banking Center within Chris’s account adding bills and receipts
3. Select Receipts
4. Drag and drop the file from the folder it’s Once receipts are in QuickBooks Online, they show
stored in to the drop box within up under For Review in the Receipts tab. From
the Receipts tab here, Chris or you can select the row to have a side-
5. Be aware that it may take up to 15 minutes by-side view of the receipt you or Chris have sent
for QuickBooks Online to process the file and the data that has been extracted. You can also:
and for it to show as ready in the account
 Select Review to edit the extracted
information for the receipt. If there are
 multiple matches, selecting Review will
allow you to choose the match you want Excluding bank
 Select Add if you want to create a new
expense in QuickBooks Online with the transactions
receipt attached
 Select Match if you’re ready to match the The story so far
receipt with an existing record in Craig’s got the hang of working with the bank feeds
QuickBooks Online and can add transactions that aren’t already in
QuickBooks Online. He’s amazed at how helpful
Note: if an imported banking transaction and a the matching feature is.
receipt are both in For Review, QuickBooks Online But guess what? He’s found some transactions that
won’t suggest a match until you select Add for one aren’t a match and he doesn’t want to add them.
of them. How can QuickBooks Online help?
Let’s see how this works for Chris’s receipt. Managing transactions from an online bank feed
Watch the video to see how it’s done. The takes patience and knowledge, and QuickBooks
individual steps are below for you to follow. Online makes it easy and straightforward.

1. The bills and receipts entered are now

visible in the For Review tab When to exclude
2. If QuickBooks Online finds an expense or
bill already entered, it will suggest that transactions
you Match the bill or receipt to the existing
transaction Excluding a transaction means removing it from the
3. Where QuickBooks Online is unable to find bank feed and not recording it in your QuickBooks
a match, you can manually add a transaction Online register.
4. Select Review from the action column A good example of when you might do this would
5. The bill or receipt and existing details will be if the bank feed brought in a duplicate
load for you to amend as appropriate transaction that had already been added to
6. In this case, we need to set the Document QuickBooks Online. This may happen if you import
Type to Bill transactions but are current on your reconciliations.
7. You will be able to assign a payee, payment The banking feature does not match imported
date, account/category, description, amount, transactions against reconciled transactions.
and memo to the transaction. QuickBooks To exclude a transaction for Craig from the For
Online will fill in the fields it can using Review tab, select the checkboxes to the left of the
OCR technology date for the transactions you want to exclude.
8. Select Save and Next to confirm Once you’re done, select the Batch Actions drop-
9. Because this is a bill or receipt for a new down and select Exclude Selected. The transactions
expense, select Create bill to add it to move to the Excluded tab.
QuickBooks Online You can see what you’ve excluded in the Excluded
10. QuickBooks Online automatically includes tab. These transactions haven’t been added to
the image of the receipt with the transaction. QuickBooks Online, so they won’t appear in any
To check this, select the Reviewed tab account registers or report.
Excluding and reconciliation
Excluding is about avoiding errors. The goal of
Managing users and reconciliation is to prove that the transactions in the
register match the transactions that have cleared on
addresses the bank statement. If a duplicate transaction is
imported into the register, the register will not
It’s important to know that you can only register reconcile with the bank statement. This will result in
one unique customized email address for each incorrect financial reports.
QuickBooks Online company. But what if you accidentally exclude a transaction
Once you’ve registered the email for the client and you’d like to include it again?
company, you can always select Manage
Senders to specify which users can email receipts. 1. Choose Banking from the Left Navigation
For users to send receipts, they need to be at least a Bar
standard user with vendors permissions. 2. Select the Excluded tab
As a ProAdvisor, you can forward email receipts to 3. Select the checkboxes for the transactions
all your clients that have receipt forwarding you’d like to include again
enabled. Just remember to use the unique 4. Select the Batch Actions drop-down,
forwarding address for each client that was created select Undo, and it will bring the specified
when this feature was enabled in their QuickBooks transactions back into the For Review tab for
Online account. you to work with.
Browse the pic
You can then add, categorize, or match and accept
the transactions.
 keeping Craig’s QuickBooks Online registers in line
How to exclude a with the activity recorded by his bank. 
In this lesson, we’ll look at how setting up a simple
transaction bank rule can allow QuickBooks Online to take the
strain and help manage transactions automatically.
Craig’s been working on his bank feeds and he’s
noticed two transactions from Squeaky Kleen Car
Wash that cancel each other out. An accidental About bank rules
duplicate payment made in May was returned in
August. Bank rules automate the categorization of the
Because no goods were exchanged, Craig has asked transactions in the bank feed, including assignment
that these be removed from his bank feed. Because of the transaction type, category, payee, class, and
errors in the bank feed like these will affect future location. 
reconciliations, you can exclude these transactions They can also be used to automatically split
for him. transactions. Rules can be prioritized, copied,
Watch the video to see how it’s done. The edited, and exported. You can even create bank
individual steps are below for you to follow. rules to add transactions to the register
automatically.
1. Select Banking from the Left Navigation
Bar
2. Select the check box next to the transaction Creating a rule
for Tania’s Nursery for $108.09
3. Select Exclude in the banner at the top Now let’s take on the challenge Craig has given us:
4. The transaction has now been removed from to set up a simple bank rule just so he can learn how
the For Review tab in the bank feed it’s done.
5. Select the Excluded tab to see these He’d like QuickBooks Online to automatically
transactions. From here, you can manage categorize his equipment rental expenses.
them further if you need to Watch the video to see how it’s done. The
individual steps are below for you to follow.

Reinstating excluded 1. Open Banking from the Left Navigation Bar

2. We’re in the Banking Center now, so select
transactions the Rules tab at the top, just above the
details about Craig’s checking account
If you exclude a transaction that you later require in 3. Select New Rule
the bank feed, you can easily reinstate it. 4. Add a description. Make it A Rental and
Watch the video to see how it’s done. The this rule is for Money Out in all bank
individual steps are below for you to follow. accounts
5. Add a condition: select Bank text from the
1. Return to the Banking Center first drop-down
2. Select the Excluded tab 6. Select Contains from the second drop-down
3. Select the transactions you wish to reinstate 7. Type A Rental in the final box. This means
4. Using the Batch actions drop-down, that anything with A Rental in the text of the
select Undo transactions will qualify for our rule
5. Select the For Review tab to see your 8. Make transaction type equal Expense. This
transactions back in the bank feed means that the rule will create an expense
transaction
9. Select the payee. Select Add New and
Creating simple bank type A Rental
10. Select the category. Make it Equipment
rules Rental
11. Return to the Payee field and select the new
The story so far vendor A Rental
Craig wants to make it easier to manage the 12. Select Save
transactions he imports from his bank into 13. Now go back to the Banking tab
QuickBooks Online.  14. Select Categorized 
He’s heard that he can set up rules so bank
transactions can be fast-tracked by being You’ll see the $800.00 and $1,200.00 transactions
automatically categorized and assigned to payees. for A Rental have a Rule icon attached to them, to
This automation will save him time he could use show that they have been categorized as per the rule
running his business.  we just set up.
Let’s hope you’re up to speed with this because Notice that the transactions also have an Auto-add
he’d like your help setting up some bank rules! icon attached. This is the default setting when
How can QuickBooks Online help? creating a new rule and will automatically add the
Matching and adding transactions from a bank feed transactions to your QuickBooks Online.
is pretty straightforward, and an important part of Note: The Auto-add setting can be turned off while
creating the rule, or at any time by editing the rule.
ProAdvisor tip 2. Select Payroll Checking from
On the rules screen, select Automatically add to the Account drop-down
my books if you want the rule to automatically 3. Enter $4,819.29 from the statement ending
record transactions that meet the defined criteria balance into the Ending balance box, and
without having to select the button in the For enter 06/30/2020 as the Ending date
Review tab. 4. Select Start reconciling
Transactions that have been automatically added by 5. Notice that QuickBooks Online has already
a rule will have a green Rule icon next to them in marked all the transactions for June cleared
the In QuickBooks tab. in the register and that the difference is zero

Because all transactions were previously

Reconciling the bank matched and added in the Banking Center
(marking transactions as tentatively cleared),
Cindy, owner of Cindy’s Bee-uty Bar, has had a this makes the reconciliation process at the
great month and she already has enough orders to end of the month a snap!
give her a great quarter. 6. Select Finish now, then Done
But she knows that she needs to pause and think at
the end of each month and make sure her accounts
are reconciled. Viewing bank statements
Reconciliation takes time and attention. Cindy
remembers her former process, where she spent It’s best practice to connect your client’s bank
hours reconciling accounts and getting confused. account to QuickBooks Online Banking. If their
What she needs is a run-through of how reconciling bank supports this feature, you can get bank
with QuickBooks Online works. statements automatically on the reconcile page.
How can QuickBooks Online help? No need to shuffle paper statements or sign in to
It’s best practice to reconcile Cindy’s accounts multiple online bank websites. This is especially
monthly to the bank statement using the Reconcile useful if you’re a bookkeeper reconciling accounts
feature.  for multiple clients, or you’re reconciling several
The reconciliation process is necessary to find statements for the same account.
errors and omissions between QuickBooks Online Select the tabs below for more information.
registers and the bank. With QuickBooks Online
this is made easier, especially when using bank Start the reconciliation
feeds.
Let’s show off a little and wow Cindy with how 1. Select Accountant Tools, then Reconcile at
easy reconciling in QuickBooks Online can be. the top
2. From the Account drop-down, select the
Reconciling in account you want to reconcile
3. If you see the View statement option, you
QuickBooks Online can get bank statements directly from your
client’s bank for this account
4. Select View statement to see available
Reconciling Cindy’s accounts means making sure statements.
that what she has in QuickBooks Online reflects
what’s really happened in terms of income, Browse pic
expenses, and other movements and adjustments of
cash. Select the statement
With a bank statement, the power of QuickBooks
Online, and its smart learning, reconciliation can be 1. Select the statement you want to use for the
done quickly and efficiently. reconciliation from the list
You can also see a list of statements that
have already been reconciled.
2. When you're ready to start, select Start
Reconciling accounts reconciliation or Resume reconciliation
3. Follow the steps as before to complete the
Cindy has done a great job reconciling her accounts. reconciliation. When you’ve reached a zero
Let’s see how she’s done it. balance, select Finish now
We have received her bank statement dated June 30,
2020 for her Payroll Checking Account. It displays Browse pic
her beginning and ending balances and the total
amount of withdrawals and deposits. We’ll need Viewing bank statements
this information to complete the reconciliation.
Watch the video to see how it’s done. The You can review reconciled bank statements any
individual steps are below for you to follow. time:

1. Select Accountant Tools, then Reconcile at 1. Select Accountant Tools, then Reconcile at

the top the top
2. Select History by account
 3. Look for the statement ProAdvisor tip
4. Select Attachments in the Statements You also have the option to add reference numbers
column to open the statement and memos right from the reconciliation screen. So
if the check transactions didn’t come through with a
ProAdvisor tip check number, you just edit them here to pop the
If your client’s QuickBooks Online doesn’t have the information in. Simple! You also have the option to
option to fetch statements automatically, you may change the payee and the posting account.
be able to attach them manually by accessing their
account through QuickBooks Online Accountant.
Beginning balance
An intelligent discrepancies
reconciliation experience QuickBooks Online has smart learning that will
help you and your client with some of the most
Cindy’s books balanced straight away and gave us common causes of accounts not reconciling.
that all-important zero difference. But sometimes Beginning balance discrepancies (where the
finding the problems takes time and detective work. beginning balance you see on your client’s bank
With QuickBooks Online, the features to help you statement doesn’t match the beginning balance
find reconciliation problems are right there at your when starting a bank reconciliation) should be fixed
fingertips. before you reconcile.
Let’s take a look at another client’s bank QuickBooks Online alerts you to these beginning
reconciliation and take a tour around the screen to balance discrepancies and gives you a link to run a
explore some of the features. discrepancy report straight from the reconcile
Select each hotspot in turn to see further screen.
information.  Browse the pic

Registers The discrepancy report finds any transactions that

There’s a handy shortcut to jump straight to the bank were:
registers with a single tap. Select Reconcile to return to the
reconciliation screen.
 Changed after they were reconciled, if the
Overview area change affected the beginning balance of the
This gives you more visibility of how you are reaching the account
zero difference.  Deleted after it was reconciled
 Manually reconciled in the register by
Customize view changing the reconciliation status to
By default, the table shows all transactions, but you can reconciled (R)
also choose to show just deposits or payments.
 Unreconciled in the register by changing the
reconciliation status from reconciled (R) to
Filter
The filter gives you a number of ways to search for cleared (C) or no status
transactions. Examples include search by memo, reference
number, and amount, or cleared status, transaction type, When you open the report, QuickBooks
payee, or date range. By default, QuickBooks Online sets a Online will also give you some guidance on
filter to show transactions on or before the statement date. how we think you can resolve the
transactions. Once you’ve resolved the
Difference problem transactions and the Total
The all-important reconciliation number. You need to try
Discrepancy Difference is zero, you’re ready
and get the difference to zero. When you add or remove a
checkmark to include or exclude a transaction, we update to reconcile.
the difference. Your client’s books and bank agree when
the difference is $0.00.
Rogue transactions
Edit info
If you need to edit the statement ending balance or date, QuickBooks Online also uses smart learning to help
select the Edit button to make the change. you identify if a rogue transaction is preventing you
from reconciling.
Saving your reconciliation For example, it can help you identify if a transaction
If you want to save the reconciliation and finish it later, you
can select the Save for later button. Once you reach the
date is incorrect (say if the posting date was
magical zero difference, this button will change to Finish manually entered and has a clearing date that differs
now. This will complete the reconciliation. There are other from the bank data). QuickBooks Online will
options in the drop-down. identify these hidden transactions and give you a
link to display them, making it easy for you to go
Select transactions through and include the ones you need to hit the
Any transactions added or matched through bank feeds will magic zero difference!
automatically have a checkmark in this column. Compare This smart learning is available to QuickBooks
the transactions to the bank statement and if they show up
on the bank statement, check them off. Once everything
Online accounts that have been connected to online
that is on the bank statement is selected here, the difference banking, because it relies on the cleared bank feeds’
should be zero. transactions.
Browse the pic Watch the video to see how it’s done. The
individual steps are below for you to follow.
ProAdvisor tip From QuickBooks Online Accountant, open
You can learn a lot more about how to troubleshoot Cindy’s client file
bank reconciliations by joining us in the
QuickBooks Advanced Certification training. 1. Select Accountant Tools, then
select Reconcile
2. Select the History by account link
Changing a reconciled 3. On the Reconciliation history screen, select
the down arrow next to the View
transaction report then select Undo

Now, as with most things in QuickBooks Online, if QuickBooks Online doesn’t ever want you
Cindy or any client makes an error and needs to fix to do this by accident so you’ll get two
it, it’s pretty easy to adjust or roll things back. warning pop-ups checking you’re sure you
Even transactions that you’ve reconciled can be want to undo the reconciliations.
changed.
Generally, you wouldn’t change a reconciled If you don’t want to undo all your hard
transaction, but sometimes errors are made work, select Go back.
inadvertently.
Watch the video to see how it’s done. The
individual steps are below for you to follow. Recurring transactions
Having noticed that she wrote a check for the wrong
amount to a vendor, Cindy has gone into the The story so far
account herself and updated the amount on the Craig is really impressed with the way QuickBooks
check after you have reconciled. Online can help him work with his bank data, and
Let’s pretend we’re going to attempt the next his reconciliations will be easier from now on. But
month’s reconciliation. he’s intrigued when you mention that recurring
transactions could save him more valuable time, by
1. Select Accountant Tools icon and automating regular transactions.
then Reconcile Ready to help Craig with recurring transactions?

You should see an alert warning you that How can QuickBooks Online help?
this account isn’t ready to reconcile, Recurring transactions can be set up for a variety of
highlighting that our beginning balance is different reasons in QuickBooks Online. The beauty
off by $100 (the edit we made earlier) and of this feature is that it’s flexible enough to meet
giving a link to help us fix it. lots of business needs for different types of
2. Select the link businesses.
Let’s take a look.
The link will launch a Reconciliation
discrepancy report screen highlighting the
problem we created. Let’s fix that problem. Helping your clients
3. Select the line in the report and edit the
amount back to $422.36, then select Save create recurring
4. You may get a warning pop-up asking if
you’re sure, but hold fast, we’re doing good transactions
here, so select Yes
5. The entry should disappear and the total Recurring transactions in QuickBooks Online can
discrepancy should be zero be set up to manage pretty much any of the first
6. Select Done and you’re all set for next transactions in any workflow, like sales receipts,
month’s reconciliation invoices, bills, journal entries, checks, deposits, or
expenses.
Undoing a reconciliation It’s a great way to automate money-out transactions,
like rental or insurance payments, that are paid at
regular intervals and fixed amounts.
If things get messy, it’s useful to know how to undo On the sales side, when Craig provides a regular
a reconciliation. However, it’s usually better to use service at a fixed price for a customer (such as
the discrepancy report to fix reconciliation errors weekly lawn mowing or monthly tree trimming) he
that we looked at a moment ago. You may undo a can invoice them automatically using recurring
reconciliation if the reconciliation was forced, service charges.
meaning it was saved even though the difference Craig can even set a recurring charge to a
was not zero. That causes QuickBooks Online to customer’s credit card or bank account (ACH) using
make an adjustment. a sales receipt, with advance customer
Undoing the reconciliation allows you to start over authorization.
so that you can find the discrepancies. When setting up an invoice for a recurring
In this activity, you’ll walk through the steps transaction, you have the option to include unbilled
involved in undoing a reconciliation. charges and automatically send emails. If set up,
Craig won’t have to remember to generate invoices 14. In the Category details section, select the
every month. This will eliminate all the reminder Automobile: Fuel account
sticky notes he keeps attached to his computer 15. Make the amount $300 
screen. His attention can be focused on his business 16. Select Save template
instead.
More advanced recurring transactions can be set up
for non-posting transactions, such as purchase
orders or estimates. Notice that the transaction does
not have to be scheduled. So, for example, if your
purchase order typically contains the same items
purchased but you don’t order on a scheduled basis,
select Reminder or Unscheduled from
the Type drop-down list.
As an accountant, you can even set up recurring
journal entries to reclassify deferred revenue or
prepaid expenses.
Browse the pic

ProAdvisor tip
Automating processes with recurring transactions
can save time and headaches when you’ve got
regular predictable activities, whether they’re
expenses or sales activities like invoices. However,
the automation requires some involvement to make
sure invoices for canceled or held work don’t go out
automatically!

Creating a simple
recurring transaction
Craig paid his first month of fuel costs by check, but
he is on a monthly budget plan. Because this is a
regular payment he needs to make, let’s help him
set up a recurring transaction.
He’s already set up for his bank to make the
payment on his behalf each month.
Watch the video to see how it’s done. The
individual steps are below for you to follow.

1. Select the Gear icon 
2. Select Recurring transactions
3. Select New
4. From the new Transaction Type drop-down
list, choose Expense and select OK
5. On the new screen, enter Chin’s Gas and
Oil: Budget Plan as the template name. It’s
best practice to list the Name
(Vendor/Customer/Employee) in the
Template name. This makes it easier to
identify your recurring templates
6. Choose Scheduled as the type. It’s probably
selected already
7. We’re going to create the recurring
transaction 5 days in advance
8. The payee is Craig’s fuel supplier, Chin’s
Gas and Oil, so let’s add that from the
vendor list
9. Choose Checking as the account from
which the payment will be made
10. Select Monthly as the interval
11. Make the payment on the first of the month,
starting at the beginning of next month
12. Don’t add an ending date
13. There’s no need to enter a payment method
or reference number