The Bank Accounts You Need to Include In Quickbooks Online



April 21, 2021

One of the best parts of going with Quickbooks Online for your bookkeeping software is the automation that imports transactions directly into the system.  However, you may not want to set up all of your accounts to update automatically.

I previously shared how to choose the software version that’s right for your business; Quickbooks Self Employed or Quickbooks online.  As I pointed out, if you are a small business and not just a freelancer, Quickbooks Online is the best option for you.

After you’ve gone through the initial Quickbooks Online setup, you’ll want to add your bank accounts.  Doing this allows for all of your transactions to sync into the software. 

But what accounts should you sync?

Separating Business and Personal Accounts

When you’re a small business, including if you’re classified as self-employed, it is always best to have separate accounts for your business.  Even if the account is set up as a “personal” account with your bank, it’s best to separate it from what you use for your personal spending.

As part of the bookkeeping and tax process, auditors, tax preparers, bookkeepers, or accountants may look at your financial records.  Your personal spending is none of their business.  But when you are mixing business and personal spending into one account, you will be making those personal expenses part of their review.

Yes, you can mark them as personal.  But those transactions will still show up on your reports in Quickbooks Online.

Not to mention, all those personal transactions will have to be categorized. You’re adding to the time it takes to manage your finances.

This goes for your credit cards as well as your bank accounts.  Maintaining separate credit cards for business transactions will always be easier to automate and manage.

Using Your Personal Account for an Occasional Business Purchase

Keeping your accounts separate and syncing your business accounts to Quickbooks Online will always be the most efficient and easiest way to manage your business finances.  But, even with the separate accounts, there may still be a random business purchase that slipped into your personal account.

This does not mean that you have to sync this personal account to get that transaction into Quickbooks Online.  Instead, manually enter those transactions.  

What Accounts to Sync to Quickbooks Online

Now that you have your business transactions and personal ones maintained in separate accounts, all you have to do is sync the business accounts to Quickbooks Online.

You’ll want to sync any business bank accounts as well as any business credit card accounts. 

If you use the Profit First method and have multiple bank accounts for various financial categories, sync all of them into Quickbooks Online.

Don’t forget about any business savings accounts you may have as well.

Sync You Store Accounts into Quickbooks Online

You know that time when you were at the store buying stuff for your business, and they enticed you with a great credit card offer?  “Sign up today and get 15% off this purchase!”

Yes – sync those accounts too.  But only if you use them strictly for business.

Another popular store account many of our clients have is through Best Buy.  They have excellent terms when you are making large purchases.  So the next time you buy new equipment for your business for 12 months of interest-free financing, you’ll want to sync that credit card with Quickbooks to record not only the purchase but the payments.

Should You Sync PayPal to Quickbooks Online?

PayPal can be a little tricky when it comes to Quickbooks.  But, if you are selling a physical product online, it is a common choice for payment.

What you need to consider is how many transactions will be coming through.  Remember, all transactions need to be categorized.  So if you have a lot of them, that can be time-consuming.

Also, Quickbooks only allows for one income stream.  If you have multiple income streams, then having PayPal take that up may not be the ideal choice.

Deciding on how to handle your Paypal transactions may be something that you want to talk through with one of our bookkeepers.

How a Bookkeeper Can Help

Even once you know what to sync, the regular categorizing of all your transactions and making sure your bookkeeping is caught up consistently may be a bit overwhelming.

That’s where we can come in and help. If this is something you struggle with or you just don’t have the time to do it – be sure to check out our services because we offer full-service bookkeeping and would be happy to help!

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