Bank Feed Categorization Services for QuickBooks Online

The most valuable service your accountant can provide is bank feed categorization for your QuickBooks Online account. If you have chosen this monthly service with Lend A Hand Accounting, your bookkeeping is in good hands! When your dedicated accountant manages your daily bank feed categorizations, they start to develop your accounting story. From day one your accountant will evaluate your business spending and money-making trends. This service saves business owners up to 8 hours per month, eliminates bookkeeping errors, and reduces the time to reconcile by 95% on average. Our firm specializes in creating custom bank rules to automate the bank feed categorization process and utilizes our custom platform to clear uncategorized transactions.

Relax while your Accountant categorizes Bank Feed Transactions

Once you have connected your business bank and credit card accounts, the stress begins. Your bank feed categorization can be a frustrating bookkeeping task to complete in your QuickBooks Online account. If your Banking dashboard in QBO looks anything like the snapshot from the sample company below, there are serious problems to solve that will take time to research. The bottom line is that your QuickBooks Balance should always match your Bank Balance. The good news is you can relax while your accountant categorizes your bank feed transactions for you, if you have selected this service.

Your Accountant quickly masters managing your Bank Feeds

The goal of your dedicated accountant will be to quickly master how to categorize and match your business income and expenses within your bank feeds. We have developed a streamlined process for connecting with our clients on a recurring basis for their feedback and advice. Your accountant will send notifications to request information on uncategorized transactions that will show up on your client dashboard. You will be able make selections and enter information directly within the request on your client dashboard. You can also upload information into a folder within your document upload portal or email it directly to your accountant. Your accountant will create custom bank rules to match your recurring business expenses, transfers and deposits.

Your Accountant uploads missing transactions into Bank Feeds

Regardless of whether your bank or credit card company can successfully connect to your QuickBooks Online account, your accountant will upload any missing transactions into the bank feeds of your business bank and credit card accounts and categorize them for you with this service. We do ask our clients to login to their online accounts and download any missing transactions for us to upload into the bank feeds of their QBO accounts. Our firm believes in protecting the privacy and security of our client’s financial information and therefore never asks for bank or credit card account login details. You can upload the Excel csv file into a folder within your document upload portal or email it directly to your accountant.

Your Accountant records Equity transactions in your Bank Feed

It is common for business owners to invest personal funds in their business. Many business owners use business funds to pay for personal expenses from time to time. When this happens, your accountant will record Owner Equity transactions on your Balance Sheet. The personal money received or spent is likely to come through your QBO bank feed. You will be able to easily identify Equity transactions via your client dashboard requests from your accountant.

Your Accountant records Principal and Interest Business Loans

Many businesses have bank and auto loans with recurring monthly principal and interest payments. When money spent comes through you bank feed it can include your monthly loan payments. Your accountant will review the monthly loan statements that you upload into your secure document upload portal and record a split payment between the principal liability balance on your Balance Sheet and the interest expense on your Profit and Loss Report. This will reduce your loan liability and record the monthly interest expense. Your accountant will also match the recorded payment to the bank feed transaction.

Your Accountant helps Separate COGS and Operating Expenses

Your Accountant can evaluate your business expenses to help you determine whether an expense is a COGS (Cost of Goods Sold) expense, or an operating expense. We want to help our clients understand the link between their business profit and their cost of goods sold. To determine the cost of goods sold for a product, you must add up the cost of materials and direct labor needed to create the product. Your operating costs are not directly tied to your cost of sales and are categorized to accounts such as marketing, advertising, bookkeeping, accounting, bank fees, taxes, building repair and maintenance, fuel, travel, office supplies, rent and utilities. These two expense types are reported separately on your Profit and Loss report. Both can reduce business profit.

Your Accountant matches Money Spent to Vendor Bills & Expenses

Even if you have not selected our A/P and Expense Entry service, your accountant will match the money spent that comes through your bank and credit card account feeds to the vendor bills and expenses that you have entered. If an expense is unknown and cannot be categorized, your accountant will send you a notification requesting expense information that will show up on your client dashboard. You will be able to make an account selection and add information directly within this request.

Your Accountant matches Money Received to Invoices & Receipts

Even if you have not selected our Customer Invoicing or Sales Receipt service, your accountant will match money received that comes through your bank and credit card feeds to customer invoice payments or sales receipts that you have entered. They will additionally clear undeposited funds by creating matching QBO bank deposits from sales receipts and received customer invoice payments. They can also create customer refund receipts as needed. Refund receipts are created when prior customer payments are rejected or returned and your bank deducts this amount from your account. They can also be used to refund a customer payment by check or credit card.

Your Accountant helps you Avoid Tax Audits with Categorizations

Poor bookkeeping is the number one reason for IRS and State Tax audits. It is critical to record your income and expenses correctly in QuickBooks Online. Any uncategorized or miscategorized income or expenses can trigger an audit. State agencies such as the Department of Revenue and the IRS look for trends such as sudden increases or decreases to reported income or business deductions. It is important to keep your accounts reconciled and to maintain a verifiable bookkeeping audit trail. Your accountant will help reduce the likelihood of IRS and State tax audits with our Bank Feed Categorization service.