Before proceeding, make sure your bank feed mode is set to Advanced or Fast mode. Advanced and Express are similar, except that Advanced offers more options for categorizing your transactions. Make sure you don’t select Classic or Post mode by accident because it won’t allow you to import your transactions into QuickBooks.
To set up your bank feed preferences, click the Banking menu select banking sourcesand then click Change bank fonts mode As shown below.
You should now see a screen pop up where you can set your bank feed preferences. Under the Verification menu, make sure it is in Advanced or Quick mode. By default, QuickBooks Desktop sets it to Advanced mode. Click on the blue okay button to continue.
From the QuickBooks Desktop home page, click the Banking menu at the top of the screen. select banking sources and then click Set bank source for an account.
A pop-up screen will appear temporarily, telling you to close all open QuickBooks windows. Click Yes continue.
After clicking Yes, the bank feed setting screen will appear. From here, you will need to enter the name of your bank. Connecting your bank account to QuickBooks varies from bank to bank, so we can’t include detailed instructions for your bank. Follow the instructions on the screen.
A login screen will then appear, prompting you to enter the login credentials for the bank account you use to access your bank account information on your bank’s website. If you have not yet registered for online access at your bank, you must do so before proceeding. From here, follow the prompts when connected to your bank.
Before you import your transactions, review what’s in your checking account register. This will help you verify if your new transactions were successfully posted to the ledger. To do this, click usage logwhich is under the Banking menu.
In the screenshot below, there are two transactions recorded in the checking account register. Later, you should see the transactions that we are going to import into QuickBooks Desktop.
With the bank source set, your bank transactions will be automatically imported into QuickBooks on a daily basis. A big benefit of importing transactions through bank sources is that you don’t have to manually import your bank transaction files into QuickBooks, which reduces accuracy and efficiency.
Once you import your transactions, you will be taken directly to the Bank Source Center, where those new transactions will appear in the Transactions pending review tab. You will see four categories: Recognized, Partially Recognized, Unrecognized, and Added to Registry.
In the screenshot below, two of the transactions we added are recognized and one is not recognized. Next, we’ll explain how transactions are categorized and the steps you need to take to manage them.
Recognized transaction management
When QuickBooks compares a bank transaction to one that’s already recorded in your books automatically, you’ll go directly to the Recognized tab. We recommend that you always review the details before clicking on the Confirm button. In the Recognized tab, on the left side of the screen, you will see the Confirm button (not shown) with three dropdown menus: View Details, Does Not Match, and Ignore.
- See details: Clicking here takes you to the actual check. Click Confirm if it matches your bank transaction.
- Not a match: Select this if the transaction from your bank is not the same transaction that it has been associated with in QuickBooks. The transaction will go to the Unrecognized tab.
- Ignore: Click here if you do not wish to do anything about the transaction.
When you confirm a recognized transaction, it will be entered into the account record, as reflected in the Added Record tab. Your goal is to enter all three transactions into the register.
Management of unrecognized transactions
There are some cases where QuickBooks doesn’t match a bank transaction to what’s in your books. In this case, you need to review it and add it to the account record manually.
However, before proceeding further, we must provide additional details. To do this, click on the Add more details dropdown below the Add button on the far left of the screen.
After clicking Add more detailsa pop-up screen will appear asking you to enter information.
- Date: Enter the date the transaction occurred.
- Memorandum: Please provide additional information, such as the purpose of the transaction.
- Number (optional): Assign a unique number to your transaction.
- Fork: Enter the name of the provider.
- Bill: Assign the transaction to the corresponding expense account.
- Client/Job (optional): Assign to a client or job.
- Billable: Check the box if you want to bill a customer for the transaction.
- Amount: Verify that the transaction amount is correct.
Click on the blue Save and add to register button—and you’re done.
All of your imported transactions will have been moved to the Added to Log tab.
Now when you check the checking account record, you should see the transaction you just imported into QuickBooks Desktop. In the check register, you will see a lightning bolt indicating that the transaction was imported from your bank.