Any current client of SME CPAs that refers a NEW client with expected annual bilings over $500 or greater will be rewarded with a $50 Gift Certificate as a thank you.  Rewards will be done on a quarterly basis.

At the end of the year SME CPAs will host a Client Appreciation Party for all of the clients that were rewarded throughout the year!

 

Can Online Banking Improve my Workflow in QuickBooks?

 

Online banking, performing banking transactions over electronic media, has come a long way since its beginnings in the early 1980's. Current online consumers would not recognize the rudimentary process utilizing a television and telephone to send transfers and pay bills that characterized the first successful launch of internet services by The Bank of Scotland in 1983. Today's users of online services have access to their accounts "24/7" via computer or a wide variety of personal electronic devices.  The convenience-dominated American society has embraced this advancement, as evidenced in the sharply upward trending use statistics.  In fact, studies have shown that even a majority of Americans aged 55+ prefer online banking to visiting a branch or ATM.

 

So can QuickBooks users utilize this trend to their advantage?  The answer is a resounding "yes."  By using the online banking feature within the product, transactions are downloaded into QuickBooks directly from financial institutions.  This feature has been available since 2011, but it has historically been underutilized, perhaps because it seemed more complex than it actually is.   With a few simple steps, all of your transactions are available for review, which is comprised of examining each item to ensure it is appropriately classified before updating QuickBooks.  In many cases, this process reduces or eliminates data input, saving valuable time.

 

Downloading data also ensures its accuracy.  For each download, QuickBooks compares new transactions to those already entered (such as those entered manually) and alerts the user to any discrepancies.  Any missed transactions are easily added, and end of the month reconciliation is greatly facilitated by catching these omissions prior to beginning the reconciliation process. 

 

Another advantage of downloading data from banks is that business owners can stay apprised of their cash flow.   They will always know which checks have cleared and how much cash is available. 

 

In addition to using this feature for checking and savings, it is also applicable to credit card accounts.  In many ways, it is even more beneficial for monitoring credit card activity.  For instance, it is not unusual for business owners to be unaware of credit card charges until the statement arrives.  Very often, office managers and salespeople neglect to turn in receipts during the month, and even owners themselves may be guilty of misplacing receipts.  By regularly downloading transactions, the user remains up-to-date with credit card activity.

 

Within QuickBooks 2014, improvements include upgrades to online banking, which is renamed "Bank Feeds."  The user interface reflects marked improvements, including the particularly useful addition of an "action" dropdown list beside each unmatched transaction, simplifying the addition of details, such as splits, billable status, and class. 

 

To set up online banking, first access the Banking menu.  Then choose "Online Banking" and "Set Up Account for Online Services."  You will be prompted to choose the appropriate QuickBooks account, and the next screen provides a dropdown of financial institutions.  You will need the online banking username and password provided by your financial institution and will also have to choose whether to use Direct Connect, which is simpler because data feeds directly into QuickBooks, or Web Connect, which requires an extra step of downloading the file to your computer and then "opening" it to pull transactions into QuickBooks.  Contact your financial institution to determine which option(s) is available.

 

As always, your ProAdvisors at SME are available to answer any questions about online banking or any QuickBooks features.  Please give us a call at 706-722-5337.  We look forward to hearing from you!