One-Time Setup Tasks in QuickBooks Online
When starting with QuickBooks Online (QBO), it is essential to perform several setup tasks. These tasks help ensure that your account is configured correctly for managing your business's finances.
Add an Expense Account
Begin by adding an expense account called Merchant Service Fees. Follow these steps:
Click the gear icon in the upper right-hand corner.
Navigate to Chart of Accounts.
Click the green New button in the top right.
In the Account Name* box, type Merchant Service Fees.
Select Expenses from the Account Type* dropdown.
Choose Other Miscellaneous Service Cost from the Detail Type* dropdown.
Click Save at the bottom to create the account.
Add a Vendor
Next, add a vendor named Paystri if it does not exist. Follow these steps:
In the left-hand sidebar, under Expenses, click Vendors.
Click the green New Vendor button in the top right.
In the Vendor Display Name* box, type Paystri.
Click Save to add the vendor.
Connect Online Banking
Ensure your business bank account, where you receive deposits, is connected to your QBO account. To link your bank account, follow these steps:
In the left-hand sidebar under Transactions, click Bank Transactions.
Click the green Link Account button in the top right.
Search for your bank in the search bar and select your bank.
Enter your login credentials for online banking.
Select the accounts you wish to link.
Select the cash account to which you are linking your bank account in the Enter Account Type dropdown. Click Add New if one does not already exist.
Click Connect at the bottom to complete the link.
Once the process finishes, click Done.
*Don’t worry if your bank is not listed. Most banks allow you to download transactions directly from your online banking. Transactions can then be uploaded manually into QBO. Instructions will vary by bank.
Daily Tasks
After the initial setup, you need to perform daily tasks to manage your finances effectively.
Create Invoices and Process Payments
Create invoices and process payments as necessary from the Invoicing & Job Records page in MaidCentral. For detailed instructions, refer the Invoicing and Job Records guide.
Open the QBO Reconciliation Report
To open the QBO Reconciliation report within MaidCentral, follow these steps:
Log in to MaidCentral.
In the Company dropdown, click All Invoicing & Payroll Reports.
Click Payment Reconciliation.
Using the date selector in the top right, change the date to the previous business date if not already selected.
Record the Deposit in QBO
Use the QBO Reconciliation report to record the deposit:
Log in to QBO.
Click the + New button in the upper left corner.
Click Bank Deposit under Other.
Select the bank account that receives the credit card deposit from the Account dropdown.
Select the deposit date in the Date field.
Select the checkbox next to all transactions appearing in the QBO Reconciliation report. For payments with a surcharge, the transaction amounts on the report will not match the payment amounts shown in QBO.
In the Add Funds to This Deposit section, select Paystri in the Received From dropdown and Merchant Service Fees in the Account dropdown.
Enter the Surcharge column total from the bottom of the QBO Reconciliation report minus the Fees amount in the upper middle of the same report in the Amount box.
Ensure the bold deposit amount in the top right of the QBO deposit matches the Total Funding amount in the top right of the QBO Reconciliation report, then click Save and Close.
Match Deposits to Bank Transactions
Match the deposits you have recorded to the bank transactions in the QBO bank feed:
In the left-hand sidebar under Transactions, click Bank Transactions to open the bank feed.
Select the bank account that receives credit card deposits.
Keep in mind that a transaction will not appear in the bank feed until the business day after the transaction has posted to the bank account. Click Update to import posted bank transactions from the previous business day if they have not imported automatically.
QBO will detect if a transaction in the bank feed matches a recorded deposit and highlight it in green. Click Match in the ACTION column next to each transaction found.
Monthly Tasks
Finally, ensure to reconcile your bank statement in QBO at the end of each month. This task is crucial for maintaining accurate financial records. Here’s QBO’s guide on the reconciliation workflow to help.
FAQs
What is the process to add an expense account in QuickBooks Online?
To add an expense account in QuickBooks Online, click the gear icon, go to Chart of Accounts, click the green New button, enter 'Merchant Service Fees' as the account name, select Expenses as the account type, choose Other Miscellaneous Service Cost as the detail type, and click Save.
How do I add a vendor named Paystri in QuickBooks Online?
To add a vendor named Paystri, go to the Expenses section, click Vendors, select the green New Vendor button, enter 'Paystri' in the Vendor Display Name box, and then click Save.
What steps should I follow to connect my bank account to QuickBooks Online?
To connect your bank account, click on Bank Transactions under Transactions, then click Link Account, find your bank, enter your login credentials, select the accounts to link, choose the cash account type, and click Connect.