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About this lesson

In this lesson, we learn how to record expenses downloaded from the bank and matching expenses previously entered by hand.

Quick reference

Downloaded expenses

QuickBooks will integrate with your bank and will download expense transactions. This is called bank feeds but in QuickBooks it's called banking.

When to use

This is what you're likely to use instead of manually entering your expenses that were paid by auto draft, debit card, credit card and alike.

Instructions

There are two quick ways to get to the bank feeds:

  • On the left menu, click on banking and banking again 
  • From the dashboard, click on any of the linked accounts on the right hand side of the screen in the box called Bank Accounts

When you open the banking screen, you'll see a handful of things:

  • Blue and white boxes representing each of the connected bank accounts
  • A balance for how much money is at the bank compared to how much money is in the QuickBooks register for that account
  • An orange number representing how many transactions there are to review (this means how many things there are for YOU to review)
  • A list of the transactions for you to review, this represents the box that is selected

To review and add the transactions that have downloaded:

  • Click on the payee name for a transaction, this will open a gray box allowing you to add additional info 
  • Add the payee name (if this payee doesn't exist in your vendor list, scroll to the top of this drop down and click Add New)
  • Pick the category that best represents the reason this vendor received money from you (do not rely on the suggestion provided by QuickBooks, QuickBooks doesn't know your business)
  • Add a memo if desired
  • Click either the blue add or the green add (they both work the same)
  • Repeat until you have no more transactions to add

Hints & tips

  • QuickBooks will begin to learn and remember how you want things classified/coded and it will start to make these suggestions using green text. Please do NOT rely on the suggestions using black text, they're often not good.
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  • 00:04 In this video I want to talk to you about how to categorize transactions and
  • 00:09 specifically expenses that have downloaded either from your credit card or
  • 00:13 from your bank.
  • 00:14 To get to the list of things that have downloaded, you can either click on
  • 00:19 the bank account on the right-hand side of the dashboard, or on the left-hand
  • 00:23 side of your screen you can click on Banking and then Banking again.
  • 00:27 It's two routes to the same place.
  • 00:31 So when I do this, I can see I have one blue tile.
  • 00:34 This is for the Alaska Airlines credit card.
  • 00:36 And down below I can see 201 transactions that I need to add to
  • 00:41 my QuickBooks register.
  • 00:43 When I think about it, I think my gosh, that could take a while.
  • 00:47 Instead of doing what I showed you earlier, which is to go to the upper
  • 00:51 left-hand corner to click on New and then either select Expense or Check,
  • 00:56 I wanted to show you how to code it or add it directly from the downloaded banking.
  • 01:01 In most cases, this is the route you're going to take, but
  • 01:04 I felt like it was important for you to know how to do it the long way just in
  • 01:08 case there was a hiccup or an issue with the software.
  • 01:11 So the first thing that I see that you may not is that when I look at these columns,
  • 01:16 I have date, I have description, I have category, but
  • 01:20 I don't have the name of the vendor or the payee name.
  • 01:23 You might recall from doing this that there's a payee name in the upper left
  • 01:28 hand corner.
  • 01:29 Just for funsies it's missing from this list.
  • 01:32 Over to the right I'm going to click on the little gear, and
  • 01:35 then I'm going to click the little box that says Payee.
  • 01:39 I really want QuickBooks to show me the payee because I want to
  • 01:42 be able to generate reports later that say how much money did I spend for each payee.
  • 01:47 The other thing that happens is that sometimes Quickbooks will make suggestions
  • 01:51 that are wrong.
  • 01:52 So I'm just going to skim and see if I can find one.
  • 01:56 Here's a wrong suggestion.
  • 01:59 LUXCENTRIC is a person that I use for technology support.
  • 02:05 It's not advertising.
  • 02:07 So when you look through this, when you download your transactions from your bank,
  • 02:11 sometimes QuickBooks is going to give you a bad suggestion.
  • 02:14 I really, really encourage you to look at the category before you click add to
  • 02:18 the right.
  • 02:19 And if it's incorrect, I encourage you to fix it.
  • 02:23 I also encourage you to put a payee name into your QuickBooks.
  • 02:27 So I can click anywhere on this line that is not the add.
  • 02:31 So I'm going to click here where it says PAYEE.
  • 02:34 I can see that the money went to HUBDOC.
  • 02:37 When it look at this bank detail, what it's telling me is,
  • 02:40 if I were to look at online banking, where would I see the money went.
  • 02:44 And I would see that the money went to HUBDOC.
  • 02:47 So for payee, I'm going to type in HUBDOC.
  • 02:50 HUBDOC doesn't appear, so I'm going to add them.
  • 02:53 This is instead of going to expenses, vendors and
  • 02:57 clicking Add in the upper right hand corner.
  • 03:00 So here it says what do you want to add?
  • 03:02 And I say, well, my choices are vendor, customer, employee.
  • 03:05 I'd like to add a vendor.
  • 03:07 So I click Save.
  • 03:10 For the category, I find the category that makes the most sense for me.
  • 03:15 I don't have a category for software, but this is software, so I'm going to add one.
  • 03:19 I showed you how to do this earlier where you went to accounting and
  • 03:23 then Chart of Accounts.
  • 03:24 So here's just a little bit faster way.
  • 03:26 You can say, I know my business, I know myself and
  • 03:30 I would like to see this in its own category.
  • 03:33 No big deal.
  • 03:34 So I picked an account type.
  • 03:36 I type in a name, Save and Close.
  • 03:39 So now I can click Add.
  • 03:42 When I click Add, it takes it out of my to do list.
  • 03:45 My to do list had 201 transactions and now it has 200.
  • 03:51 If I go over to expenses on the left and then I go to vendors,
  • 03:55 if I go down to HUBDOC, I'll see that transaction for HUBDOC.
  • 04:00 So it's kind of cool.
  • 04:02 I want to show you what it looks like if you don't add the payee.
  • 04:05 And I don't know why I think it's a glitch that this is like resetting and
  • 04:10 not putting the payee column here.
  • 04:12 So Acuity, that's software.
  • 04:14 I'll click Add.
  • 04:16 I'll go to Expenses.
  • 04:17 I'll go to Vendors and I don't see Acuity.
  • 04:22 The reason I don't see Acuity is because when I added that expense,
  • 04:26 I didn't put in a vendor name.
  • 04:28 So I super, super encourage you to put in vendor names.
  • 04:32 So I'm going to toggle to turn on the payee.
  • 04:35 So sometimes you'll get stuff like this where it says Canva with some extra stuff
  • 04:40 on the end.
  • 04:40 I gave the money to Canva.
  • 04:42 I didn't give it to Canva 076 blah, blah, blah.
  • 04:46 So when I add this vendor to my vendor list,
  • 04:49 I'm just going to type in Canva and then I'm going to click Save.
  • 04:53 I like advertising and marketing, so I'll click Add.
  • 04:57 So this starts to get a little smarter.
  • 05:00 What I want to do now is I want to show you something kind of cool.
  • 05:03 So right here I've got Adobe.
  • 05:05 And I can see I have a bunch of Adobes.
  • 05:07 Right now there's no payee for any of my Adobes.
  • 05:11 So I'm going to click on one of them and I'm going to type in Adobe and
  • 05:15 Save because it's a vendor.
  • 05:17 Software is good.
  • 05:18 I'll click Add to the right.
  • 05:21 QuickBooks is going to think for a second.
  • 05:23 Well, it should have updated all these payees.
  • 05:26 If you have a situation like I'm having where the payees don't update, come up
  • 05:31 here to refresh and hopefully it'll just update itself like it's supposed to.
  • 05:35 Okay, so I refreshed and now all these Adobes there now have payee and
  • 05:40 then over to the right the software.
  • 05:43 A couple of things to let you know first of all, this is fantastic.
  • 05:46 It prefilled the name so I do not have to do it.
  • 05:49 Also when the text to the right is green,
  • 05:51 what that means is that QuickBooks has learned.
  • 05:54 It says I know what to do with that expense.
  • 05:56 You've already told me.
  • 05:58 So I have 195 things to do.
  • 06:01 I can click Add and wait for the speed of my internet for
  • 06:04 these to add to the register and come out of my to do list.
  • 06:07 Or I can check these little boxes and
  • 06:10 I can say I'd like to add all my Adobes at once, Accept.
  • 06:15 This is just a faster way to enter your expenses.
  • 06:19 So let's go over to the left, expenses and vendors.
  • 06:21 I want you to kind of see it coming together.
  • 06:24 So I have Adobe here.
  • 06:26 Adobe showed up here because I added them on that banking screen where we're
  • 06:30 just at.
  • 06:31 When I click on the gray bar for Adobe,
  • 06:33 I'm now going to see all my transactions for Adobe.
  • 06:37 So this is going to help me.
  • 06:38 In later videos, we'll start to see more things we can do with this information.
  • 06:43 But at least at a glance we can see yeah, I guess $16 a month to Adobe.
  • 06:49 Maybe some other things you might find it interesting like you're paying it twice on
  • 06:54 the 24th and the 27th, 24th and 27th.
  • 06:56 This is a great example that I'll show you later when we start looking at Profit and
  • 07:00 Loss reports.
  • 07:01 But I wanted you to kind of see like, here's your hard work in action.
  • 07:04 You can look and see what's happening on your vendor list.
  • 07:07 You can see how much money you're spending for each of your vendors.

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