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Archive for the 'Banking' Category

How to Set Up Bank Accounts for Payroll in QuickBooks QuickTip

Tuesday, September 4th, 2012

Selecting Payroll Checks and Payroll Liabilities Accounts in QuickBooks

If you do payroll in-house, you must tell QuickBooks which bank account to use for payroll checks and which bank account to use for remitting payroll liabilities. To set the QuickBooks default accounts to use for these payroll tasks:

  1. Choose Edit | Preferences from the QuickBooks menu bar.
  2. Click the Checking icon on the left pane to open the QuickBooks Checking preferences, and click the Company Preferences tab.
  3. In the Select Default Accounts To Use section, click the Open The Create Paychecks checkbox.
  4. Choose which bank account to set for payroll checks by using the drop-down list.
  5. Next, click the Open The Pay Payroll Liabilities checkbox, and choose which bank account to set for paying payroll liabilities by using the drop-down list.
  6. Click OK to save these settings.

How to See Online Banking Transactions in QuickBooks QuickTip

Monday, August 6th, 2012

Side-by-Side versus Register Mode for Online Banking in QuickBooks

QuickBooks offers a choice in how to view and work with the downloaded transactions from your bank. Register Mode splits the screen horizontally so that the top part of the screen is your QuickBooks register, and the bottom section has the Online Banking transactions, while the Side-by-Side Mode has the Online Banking transactions on the left part of the screen, and then you enter transaction data in the left section. If you use Register Mode in QuickBooks, you use the register to add or match transactions. When you use the QuickBooks Side-by-Side Mode you use forms in the Online Banking window to add or match your transactions instead of the QuickBooks register. To enable the mode that best fits your needs:

  1. Choose Edit | Preferences from the QuickBooks menu bar.
  2. Click the Checking icon on the left pane and then click the Company Preferences tab.
  3. In the Online Banking section choose either Side-by-Side Mode or Register Mode by clicking the corresponding radio button.
  4. Click OK to save your selection.

 

How to Enable Aliases in QuickBooks QuickTip

Sunday, August 5th, 2012

Using QuickBooks Aliases to Match Online Transactions

In Quickbooks, an alias is a way to match the payee name on an electronic payment to a vendor name in your QuickBooks company file, when the names don’t match. You can use an alias to let QuickBooks know how to match a downloaded transaction if you entered the transaction in your bank register (or your credit card account register) and the payee name in the downloaded transaction doesn’t match the payee name on the register, or if you didn’t enter the transaction in your bank register (or credit card account register) and the payee name doesn’t match an existing vendor name when you select the option Add One To Register.

It’s not uncommon for a payee name on a downloaded electronic payment to differ from the vendor name that you use in your QuickBooks company file. For example, you might have a vendor named BigBank that automatically deducts payments from your account, but the bank uses the name BB4445 (which might be your loan account number) when creating online payments. To match the payment with the correct vendor in the Online Banking Center you could change the name of your vendor to BT4445 in your QuickBooks file. However, this will only work if the only payments to this bank are for this loan. If you have multiple loans or other types of payments to this bank and you’re tracking them in different accounts, using a loan number as a vendor name doesn’t work—so you must create an alias.

Before you can create aliases you must first enable the Payee Aliasing feature in the Checking category of the Preferences dialog. To be sure the feature is enabled:

 

  1. Choose Edit | Preferences from the QuickBooks menu bar.
  2. Click the Checking icon on the left pane to open the QuickBooks Checking preferences, and click the Company Preferences tab.
  3. In the Online Banking box, check to be sure that the Payee Aliasing Is On radio button is checked. [Note: The Payee Aliasing option will not appear in the Preferences dialog unless you have enabled a bank account or credit card account for online banking.]
  4. Click OK to save this setting.

How to Specify Preferences in QuickBooks for WebConnect QuickTip

Thursday, May 31st, 2012

Using the QuickBooks WebConnect Method of Online Banking Access

QuickBooks has service connection preference options related to online banking (if your bank uses the Web Connect method of online access). The first option—Give Me The Option Of Saving A File Whenever I Download Web Connect Data—tells QuickBooks to provide a choice to save data for later processing instead of automatically processing the transactions when you download WebConnect data. QuickBooks provides the choice by opening a dialog that lets you decide whether to import the data immediately or save it to a file so you can import it later (you have to supply a filename). The QuickBooks dialog also includes an option to reset this option. This option only works when you select Open on the file download dialog. If you disable this option, the file is automatically opened and the data is imported into QuickBooks.

Another option with regard to online banking using the WebConnect method of online access is If QuickBooks Is Run By My Browser, Don’t Close It After Web Connect Is Done. Selecting this option means that when you download WebConnect data from your Financial Institution (after selecting Open on the Download dialog), QuickBooks remains open after you process the data. If you deselect this option, QuickBooks closes automatically as soon as your data is processed.

You can enable these settings by doing the following:

  1. Choose Edit | Preferences from the QuickBooks menu bar.
  2. Click the Service Connection icon on the left pane and then click the My Preferences tab.
  3. Choose either or both of these options by clicking the appropriate check boxes, and then click OK to save your settings.

How to Simplify Bank Reconciliation in QuickBooks QuickTip

Saturday, May 26th, 2012

Using the QuickBooks Undeposited Funds Account

If you automatically deposit your received payments into a specific bank account in QuickBooks, you may find it difficult to track your bank activity and reconcile your account unless you actually make a separate deposit for each payment received. Fortunately, there’s a better way. Take advantage of the Use Undeposited Funds As A Default Deposit To Account. Turning this option on will make QuickBooks place all received payments into the Undeposited Funds account by default. When you make an actual bank deposit you can make the same deposit in QuickBooks by using the Make Deposits window and selecting (from the Undeposited Funds account) all the matching payments. Turning it off means you will have to fill in an account when you enter data into the Receive Payments and Enter Sales Receipts windows. To select this option in QuickBooks:

  1. Choose Edit | Preferences from the QuickBooks menu bar.
  2. Click the Payments icon on the left pane and then click the Company Preferences tab.
  3. Click the checkbox labeled Use Undeposited Funds As A Default Deposit To Account in the Receive Payments box to select this option.