Ask the Accountant…
Question: I would like to link my QuickBooks Online to my bank and credit card accounts. Is that a good idea?
Answer: This is a nice idea, but not as automatic as it sounds.
QuickBooks Online can pull in your bank and credit card transactions automatically, but you’ll still need to review each one—categorize it, match it to an existing record, or exclude it. QBO doesn’t know which account to use until you tell it, so you’ll need to assign transactions yourself until the system “learns” your preferences.
Because payee details don’t import, you must enter the payee name manually. Without that information, you cannot see who was paid, how often or how much. For example, unless you record the vendor name, you won’t be able to track exactly which vendor you’re paying for internet or phone service or how much for each.
I recommend that only experienced QBO users consider this option. And then when you do, start small, perhaps with a credit card with only a few transactions, so you can learn exactly what you must do manually to allow this automatic feature to work correctly.
Please email accounting questions you would like considered for the column to [email protected] with the subject line of “Ask the Accountant”.
