How to Record an ACH Payment in QuickBooks?

Taking your business to the next level and enhancing each aspect of your company’s accounting actions, QuickBooks offers custom-solution to match every need. One of such vital actions is recording an ACH payment in QuickBooks. For doing this, the first requisite is to enabling provision for sending and receiving payments via electronic mode.

What are ACH Payments?

Abbreviated as ACH, Automated Clearing House payment is a way of transfer of funds done via the electronic medium. If you wish to transfer money from one particular account to another account taking place between two different banks or at the same time, ACH Payments can be considered as a splendid option.

Using ACH transfers have many advantageous angles, especially for small businesses. Actions like the below mentioned can be exercised smoothly with ACH Payments:

• Moving money between two different bank accounts belonging to you
• Initiating direct deposits
• Setting debit/credit card transactions

Steps to Record an ACH Payment in QuickBooks

This article will help you to go through the steps involved in recording an ACH payment in QuickBooks Desktop. Scroll below to get to the steps for understanding the process of recording an ACH payment in QuickBooks.

There are primarily two ways of recording an ACH payment in QuickBooks. Let’s understand each method and the respective steps which goes into the learning of the same:

METHOD 1:

Step 1: You can start by choosing the check or instead consider choosing the ACH payment method at the time of the creation of recurring or one-time sales receipt when you get a respective payment

Step 2: Enter the information of your customer’s bank account.

Step 3: Get validated the customer’s bank account information validated.

Step 4: Fill the form.

Step 5: Start processing the transfer and you shall get the payment.

After the first method, let’s get to understand the second method involved in recording an ACH payment in QuickBooks:

METHOD 2:

Step 1: Tap on Sales which you will find in the left navigation bar.

Step 2: Before proceeding further, check whether the Invoices has been chosen from the top of the page.

Step 3: Choose Receive Payment which you will find beside the invoice which you shall be needing.

Step 4: Receive Payment page will appear; choose to add any outstanding transactions.

Step 5: Tap on Save and New or Save and close by choosing the drop-down.

Do you still think recording an ACH payment in QuickBooks is a difficult task? If no, then this article must have contributed significantly to your queries and issues in knowing how to record an ACH payment in QuickBooks.

However, if the answer is yes, then you need to get in touch with the experts who know the quick fixes for all of your queries.

What are Wire Transfers? How does it differ from ACH Payments and which one is better?

A wire transfer can be understood as a particular process of transferring funds via an electronic medium and can be initiated between two different bank accounts or credit unions.

While ACH payments and wire transfers both are methods of electronic money transfers, nevertheless each has its unique trait and makes it distinguishable:

Time Taken:

ACH payments take 1-3 days for processing the funds transfer, while wire transfers are done in real-time.

Costs Involved:

ACH transactions are way cheaper and also free most of the time in comparison to wire transfers which varies from $23 and $6 for domestic outbound transactions and domestic inbound transactions respectively.

Intermediary Channels

ACH Payments takes place through a partnership that connects two banks and a clearinghouse while in a wire transfer it passes through the banks only.

When considering which one’s the best, honestly both ACH transfers and wire transfers have been validated to be safe for businesses and individuals. However, keeping in mind data security and your criterion which you adhere to, choose an electronic fund transfer medium accordingly.

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