Best Practices: Recording Transactions in QuickBooksPosted on December 8th, 2017
With electronic banking and bank feeds it’s never been easier to record transactions in QuickBooks. We can open QuickBooks and recent transactions are waiting for us to approve! What could be simpler? We can head to the beach and let the computers do our work.
Not so fast! Even with today’s awesome technology, there are still bank transactions that we recommend recording manually. They are:
The above transactions are best recorded manually for the following reasons:
- Timing. Transactions should be recorded on the date that they take place. Bank feeds record checks on the date cashed instead of the date issued, which leads to the next reason.
- Cash flow. We want to know our bank balances at all times. If we wait until checks are cashed, we won’t have an accurate bank balance in QuickBooks. This can lead to overdrafts and bank fees.
- Details. Bank feeds don’t transfer the details from checks, deposits, or transfers to QuickBooks at this time so we want to enter transactions as they happen, with the details we need, and match them to the bank feed download.
You might be asking yourself if we have to enter everything manually. The answer to that is no! Bank feeds work great for debit and credit card transactions!
At Moss CPA we love technology! However, the best practice for recording transactions in QuickBooks is still a mix of manual and electronic entry. Recording transactions in QuickBooks in an accurate, timely manner is the foundation to a strong accounting system.