How to Add a Bank Account in QuickBooks Online and Desktop?

A bank account for any user must exist in QuickBooks in order to make payments. It can also assist in classifying the transaction and will allow you to download them. Hence, It must be understood in a clear manner how to add a bank account in QuickBooks to make the most of the accounting software.

But before you dig deep into the complications of accounting with QuickBooks Desktop and QuickBooks Online, you must know how to add a bank account to it.

Read on to know how to add a bank account in QuickBooks Desktop and QuickBooks Online.

Why do You need to Add a Bank Account in QuickBooks Online and Desktop?

When a user adds a bank account in QuickBooks, they can easily Import the Transactions and at the same time monitor their finances. When you add a bank account, it will help you to simplify the balancing of your QuickBooks account, prevents the rise of errors, and cuts down the number of data entry problems that users have to face.

By linking your account with QuickBooks, you can just delete volumes of data entry and the reliance on data.

Prerequisites for Adding Bank Accounts to QuickBooks

You must ensure to check your credit card’s your bank’s website/URL to link your bank account to QuickBooks. However, you will not be able to connect your bank account to QuickBooks if you encounter any problem with the bank’s URL. Till then, check how to add bank URL:

• In order to connect your bank account to QuickBooks, be sure to verify the webpage or URL for your credit card. However, if there is an issue with the bank’s URL, you won’t be able to link your bank account to QuickBooks. In the interim, see how to add a bank URL:
  • Select Bank Transactions after selecting Transactions under Bookkeeping.
  • Select the Link account by clicking on it.

Note: You only need the listed URL; you won’t be adding an account.

• Locate your bank and click on it.
• Copy the Bank’s URL that appears after that.
• Lastly, use the copied URL to access the website of your credit card or bank.

How to Add a Bank Account in QuickBooks?

You can add a Bank Account in the QuickBooks Online and QuickBooks Desktop too. Read on to learn how you add an account in both.

How to Add a Bank Account in QuickBooks Desktop?

In order to add a bank account in QuickBooks Desktop, you need to:

Step 1: Navigate to the Company menu.

Step 2: Now press Chart of Accounts and then press Account. Now click New.

Step 3: Choose the right account type and then click Bank. Now press the blue button that says Continue. It will be at the end of the screen.

Step 4: Give a name to the Account by entering a name in the particular account. You can give names like Checking or Savings. Press on the Choose from Examples button in case you require help.

Step 5: Link a Subaccount. You can select to mark your account as a subaccount of any other particular account.

Step 6: Provide a description of your account. This will help you to identify it in your chart of accounts.

Step 7: Enter your particular Bank Account Number.

Step 8: Add the Routing number. You can enter the relevant routing number.

Step 9: Choose a Tax-line mapping.

Step 10: Type an Opening Balance on your particular account. You can add the information now. Press the button that says Enter Opening Balance. Now you will wish to add your opening balance to the particular statement that is ending in the balance slot. Now use the drop-down calendar to choose the date of the balance. Once everything looks perfect, press the button for OK.

Step 11: Select Check Settings.

Add your check settings. If needed you can choose a check to reorder and choose to order checks that can be printed from QuickBooks directly.

Step 12: Press the Save & Close button to select your new bank account.

Now that you know how to add a bank account in QuickBooks Desktop, let’s move on to adding a bank account in QuickBooks Online.

Read also: Banks That Integrate With QuickBooks (Desktop & Online)

How to Add a Bank Account in QuickBooks Online?

There are basically two possible ways to connect a bank account in QuickBooks Online:

Step 1: Direct Connection of Feeds

It is one of the most frequently used methods. If the bank feeds are available, set up for the particular bank feeds:

1. Open the QuickBooks Online. Now navigate to the Banking tab and select the Add Account option.
2. Now on your particular screen, choose the Direct Feed page and it opens up. Here you need to enter the name of the particular bank and then you need to adhere to all the instructions provided on-screen.

Step 2: Add a Bank Account Manually

In case there are no bank feeds available, then it is a great opportunity for you. You can select this option if you may wish to connect to the bank feed after sometime.

1. In the first step, search for the Accounting tab in QuickBooks Online. Now select New after the Chart of Accounts loads.
2. In the Accounts option, select Bank.
3. In the detail type, select Checking.
4. In the name column, enter the bank name. If you need, not mandatory, you can also add the summary in the given description field.
5. In the currency column, choose Your Currency.
6. The balance column will display the opening balance section.
7. When entering the accounting details is finished, click the Save and Close option.

Steps to Connect a Bank or Credit Card Account with QuickBooks

Bank feeds, or online banking can save your time so you don’t have to enter anything manually. The download and categorization of transactions begin as soon as you connect your accounts.

Step 1: Connect a Bank or Credit Card Account

As many business and personal accounts you can connect as you want.

• Firstly, go to Bookkeeping and then go to the Transactions and then select Bank transactions, or you can go to Banking.
• Choose Connect account if this is your first time in setting up a bank account. Or, if you’ve already created an account, choose Link account.
• Enter the name of your bank, credit card, or credit union in the search field and then select the Bank.

Note: You can manually upload your bank transactions if you can’t find your bank but still want to add your transactions.

• Now you have to press on Continue button and then sign in to your bank with your password and ID.
• Then follow the steps that are visible on the screen. This will need a security check that your bank includes. To connect it will take a few minutes.
• Choose the accounts you want to connect, then select an account type from the dropdown. Select the account type in QuickBooks that matches your chart of accounts.

In Case in the Dropdown, You don’t see the Right Account Type

• To download transactions select how far back you want. You can download the 90 days of transactions from some banks. Others are able to go back up to 24 months.
• Then you have to choose Connect.

Step 2: Download Recent Transactions

Transactions are downloaded by QuickBooks so you don’t have to manually enter them. To download the latest transactions, refresh the bank feed.

• To select bank transactions, go to Bookkeeping, then Transactions, or go to Banking.
• Then select Update.

Connect Bank Account to the Charts of Account

Here’s a step-by-step guide to link your bank accounts with Charts of Account.

• Go to the Setting menu on the top right corner of the dashboard.
• Click on the Charts of Accounts option.
• From the Action column, click on the View Register dropdown. Then click on Connect Bank option.

• Search for the URL or Bank in the search bar and select the Bank option.

Note: You will be able to manually upload the transactions in case your bank information can’t be located.

• Now you have the submit your login credentials and click on the Continue button.
• From the dropdown menu, you must select the account and fill out the date to get the transactions. Then, hit the Next button.

Note: There are limitations by some banks to download the transaction details up to 90 days. On the other hand, a few banks allow us to download transaction details for up to 24 months.

• Click on the Account Type dropdown menu to select the type of account.
• Hit the Next button.

Note: You must select the Account Type that goes well with the Chart of Accounts in QuickBooks. In case you are unable to spot the correct account type, you must hit the ‘Add New’ button.

For Users who are Adding New Credit Card Accounts

• You’re required to select the Credit Card from the Account Type dropdown.
• Fill out the name of the account and then click on the Save and Close tabs button.
• Now you will find the bank account details in the existing account dropdown menu.
• Lastly, hit the Next option. The, click on Connect and select the Done option to conclude.

For Users Who are Adding New Bank Account

• From the dropdown menu for Account Type, select Bank.
• Choose the Savings or Checking option under the Detail Type section.
• Click the Save and Close buttons after giving the account a name.

Note: You are also given an option to make changes to the New Account Name Field’s account name. Also, you can edit this later when you have time. Its not necessary to make changes right away.

Connect Another Bank Account If Your Bank is already Linked

Once you have connected your bank account to QuickBooks, it becomes easier for you to add more credit card or bank account details from the corresponding financial institution. Check out the steps to add details of another bank account to QuickBooks if you already have an account added.

• Go to the Transactions Menu and then select the Bank Transaction tab.
• From the Linked Account dropdown menu, click on Manage Connections. After this, switch the toggle to add bank account you wish to link.
• Return to the Transactions menu and click on the Link Account option if you are unable to view the account.
• Lastly, you must follow the instructions being displayed on the screen to add a new credit card or bank account details.

For Users who are Adding New Credit Card Accounts

• From the dropdown menu for Account Type, select the Credit Card option.
• After giving the account a name, select Save and Close.
• Click Next after mapping the bank account using the Existing Accounts selection menu.
• Click Connect and select the Done button to save the changes.

For Users Who are Adding New Bank Account

• From the selection menu for Account Type, choose the Bank option.
• Select either the Savings or Checking option from the Detail Type window.
• After giving the account a name, click the Save and Close buttons.

Step 3: Categorize Downloaded Transactions

You can categorize the downloaded transactions in QuickBooks by following the given steps:

• Click on the Transactions menu present at the top left corner.
• Now, select the Bank Transactions option.
• Select the For Review Tab.

QuickBooks suggests the categories of each transaction that has been downloaded and can be found under the For Review tab. Let us review each one of them:

1. In case the Transactions suggests to Add:

• Select the option to Add if the category that is suggested is correct.
• From the dropdown menu of suggested categories, pick one or you can add another category on your own.

2. In case the Transactions suggests to Review:

• Click on the Review tab, and pick any one of category or suggest and save a new category of  your choice.
• Hit the Confirm button to save the changes.

3. In case the Transaction Already Exists:

• Click on the option to check Multiple Matches or to Match.

Note: QuickBooks offers the creation of bank rules for automated categorizing transactions on your behalf. In case you want to manually categorize the transactions, you can also switch off the suggestions. You have to go to the Setting tab from the Bank Transaction tab and then remove the tick mark from the Enable Suggested Categorization.

In this article, we have added all the information regarding adding a bank account in both QuickBooks Online and QuickBooks Desktop. All you need to do is follow the steps in the given order. You cannot avoid adding your bank account to QuickBooks since it will prevent errors in your QuickBooks account. Hence it is mandatory for business.

But, in case you cannot add QuickBooks to your bank account even after following steps or you are facing some technical difficulties, you can immediately get in touch with our Dancing Numbers professionals.

---

Frequently Asked Questions