How to Set Up Bank Feed in QuickBooks Online: Step-by-Step Guide

Set up bank feeds in QuickBooks Online to connect your bank accounts with your accounting records and reduce manual data entry. QuickBooks Online downloads available bank transactions and lets you review and categorize them before you add them to your books. Bank feeds work best when you manage them regularly and keep your transactions organized. Setting up a bank feed is simple when you have your banking details ready. This guide shows you how to set up a bank feed in QuickBooks Online, along with updating transactions and reconnecting your bank account. Continue reading to find answers to common questions and learn how to manage your bank feed with ease.

What You Need Before Setting Up a Bank Feed

First of all, you should have these details ready before you connect your bank account to QuickBooks Online.

• Make sure your QuickBooks Online subscription is active.
• Sign in to the QuickBooks Online company where you want to connect the bank account.
• Keep your registered phone or email available to complete bank security checks.
• Also, you should keep your bank username and password handy for the connection.
• Decide which checking, savings, or credit card account you want to link.
• Use a reliable connection to avoid interruptions during setup.
• Confirm that your bank supports QuickBooks Online bank feeds.

Along with that, keep your banking login details ready because QuickBooks Online asks you to sign in to your bank during the connection process.

Steps to Set Up Bank Feed in QuickBooks Online

Once you have your banking details ready, you can connect your bank account to QuickBooks Online in a few simple steps. Follow the steps below to establish the connection and start downloading your recent bank transactions.

Here is how to set up bank feed in QuickBooks Online:

Step 1: Sign In to QuickBooks Online

• Sign in to QuickBooks Online and open the company where you want to connect the bank account.

Step 2: Open Bank Transactions

• From the left menu, select Transactions and then choose Bank transactions.

Step 3: Select Your Bank

• Thereafter, click Link account or Connect account.
• Search for your bank or financial institution and select the correct option from the results.

Step 4: Sign In to Your Bank

• Enter your online banking credentials when QuickBooks Online prompts you.
• Next, complete any security verification required by your bank.

Step 5: Select the Bank Account

• After that, choose the bank account you want to connect.
• Now, link it to the appropriate account in your QuickBooks Online chart of accounts.

Step 6: Complete the Connection

• Proceed further and follow the on-screen instructions to finish the bank connection.
• After you complete the connection, QuickBooks Online downloads your available transactions.

Then, review these transactions under the For review tab. Match or categorize each one before you add them to your books.

Note: You can repeat these steps to connect additional eligible bank and credit card accounts. Reauthorization requirements vary by financial institution, so avoid mentioning a fixed 90-day period unless the specific bank confirms it.

How to Reconnect a Bank Feed in QuickBooks Online

Sometimes, QuickBooks Online asks you to reconnect a bank account to restore the connection and continue downloading transactions.

Follow these steps for QuickBooks Online bank feed setup:

Step 1: Open Bank Transactions

• Sign in to QuickBooks Online and go to Transactions >> Bank transactions.

Step 2: Find the Bank Account

• Locate the bank account that needs reconnection.
• Navigate to the Reconnect option associated with the account.

Step 3: Sign In to Your Bank

• Select Reconnect and enter your online banking credentials when prompted.
• Complete any security verification required by your bank.

Step 4: Complete the Reconnection

• Now, follow the on-screen instructions to finish the connection.
• QuickBooks Online resumes the bank feed after the connection is restored.

Step 5: Review New Transactions

• Check the For review tab for newly downloaded transactions.
• Next, match or categorize the transactions before adding them to your books.

Note: Your financial institution and its connection requirements determine the need for reauthorization. Do not mention a fixed reauthorization period unless the bank specifically confirms it.

What to Do When Your Bank Does Not Support Bank Feeds

QuickBooks Online supports bank feeds for many financial institutions. When your bank does not support a direct connection, you have two options. You can connect a supported account or create the bank account manually and record or import transactions separately. With the help of the given methods, you will know how to set up bank feed in QuickBooks Online when a bank does not support bank feeds.

Method 1: Connect a Supported Bank Account

Use this method when your financial institution appears in the QuickBooks Online search results.

Here are the QuickBooks Online bank feed setup steps:

• Go to Transactions >> Bank transactions.
• Select Link account.
• Search for your bank or financial institution.
• Select the correct bank from the search results.
• Sign in to your online banking account.
• Complete any security verification requested by your bank.
• Select the bank or credit card account you want to connect.
• Select the appropriate QuickBooks account for tracking transactions.
• Simply follow the on-screen instructions to complete the connection.

Method 2: Add the Bank Account Manually

Use this method when QuickBooks Online does not support a direct connection for your bank account.

Here is how to connect a bank account to QuickBooks Online manually:

• Open Settings in QuickBooks Online.
• Select Chart of Accounts.
• Select New.
• Choose Bank as the account type.
• Enter a name for the account.
• Add the required account details.
• Check the information you entered.
• Select Save to create the account.

After creating the account, enter transactions manually or use an available transaction import method.

Also read this: How to Import Bank Transactions into QuickBooks

When Should You Use Manual Bank Account Setup?

Individuals should keep in mind that the manual setup works well when:

• Your bank does not appear in the QuickBooks Online search results.
• QuickBooks Online does not support a direct connection for your account.
• You want to track an account without an automatic bank feed.
• Also, you need to create a separate bank account in your chart of accounts.

A manually created account does not create a direct connection with your bank. You need to enter or import transactions separately and review them before adding them to your books.

How to Connect Another Bank or Credit Card Account

You can repeat the bank connection process for additional eligible accounts.

• Open Transactions >> Bank transactions and select Link account.
• Search for the financial institution and sign in to the associated online banking account.
• Select the account you want to connect and assign it to the appropriate account in QuickBooks Online.
• Review the connection details and complete the setup.
• You can use the same process for eligible credit card accounts.

How to Review and Categorize Downloaded Transactions

• QuickBooks Online places downloaded transactions in the For review section.
• Review each transaction before adding it to your books.
• Check the date, description, amount, and suggested category.
• Match a downloaded transaction with an existing QuickBooks record when a matching transaction already exists.
• Assign the correct category to new transactions.
• Review QuickBooks Online’s suggestions before accepting them.
• After you confirm the details, add the transactions to your books.
• Regular review helps prevent duplicate entries and keeps your financial records accurate.

How to Check Whether Your Bank Feed Is Working

Use these checks to confirm that your bank feed works correctly:

• First of all, check the last update date for the connected account.
• Next, select Update and check for new transactions.
• After that, review the For review tab.
• Now, compare recent QuickBooks transactions with your bank website.
• Check the Categorized tab for transactions already added to your books.
• Review the Excluded tab for transactions removed from the bank feed.
• Along with that, confirm that you connected the correct bank account.
• Also, check your bank website for alerts, messages, or security requirements.

You should remember that pending transactions might not appear until your bank posts them.

You may also read: QuickBooks Online Bank Feed Not Updating: How to Fix It

Best Practices to Manage Bank Feeds in QuickBooks Online

Keep your QuickBooks Online bank feeds accurate and organized with the following practices.

• Review downloaded transactions regularly.
• Match transactions with existing QuickBooks records.
• Check suggested categories before adding transactions.
• Avoid entering transactions manually when QuickBooks already downloaded them.
• Apart from that, reconcile your bank accounts regularly.
• Review excluded transactions from time to time.
• Check your bank website when transactions stop downloading.
• Keep your online banking credentials updated.
• Connect each bank account to the correct QuickBooks account.

Frequently Asked Questions