You may not have a QuickBooks Online account just yet. That is ok. Often times we create them in the first few minutes of the training call. To prepare for that call, please read this article and follow the action steps for "Download Transactions From Your Bank".
The joy of QuickBooks Online is connecting your business checking and credit card accounts to automatically import transactions. We will do that together during your training call by following these steps. We will only connect your LLC's checking account and any credit cards you use exclusively for you business. In some cases you may need to do a manual import. The most common reason is for business income and expense transactions that occurred in personal (or mixed-use) checking and credit card accounts. For this exercise think about transactions as of January 1, regardless of your LLC formation or S election date. Repeat the steps below for each each type of account: checking, credit, paypal, venmo, etc.
Don't include transactions from business accounts. As mentioned above, we will connect those accounts directly to QuickBoooks Online. If you also download and upload them manually there will be duplicate transactions.
Also, exclude transactions related to W-2 work.
The Action steps are precise and for our Collective members. At the end of this article are more resources that include longer tutorials for the general public.
Download Transactions From Your Bank
- Watch this short overview video to provide context for the following steps.
- Sign in to your personal bank or credit card’s website.
- Follow your bank’s instructions for how to download transactions to your computer. Sometimes it's just a tiny arrow next to the printer icon. Other times it is different, it depends on the bank. Reach out to us if you need help. Here are instructions for PayPal and Venmo.
- Set the date range to Jan 1st through today.
- Download your transactions as file type CSV. Save the file somewhere you can easily find it, like your desktop with a helpful title like "your name_bank name_last 4 of account number". If you downloaded it as an EXCEL file make sure to save/export it as a CSV file type.
- Delete all personal and mixed (home mortgage/rent, electricity, etc.) transactions. The remaining transactions should be income from your customers and expenses that are used 100% for your business. Or you can leave them in and exclude them later inside of QBO.
- Make sure there are only three columns: date, amount, and memo. They can be in any order. Memo is a text column for you to describe the transaction. Your bank's export file might have different names for this column and that is fine. The amount column should list income as positive numbers and expenses and negative numbers. Especially for AmericanExpress make sure that the positive/negative sign flipped so that expenses are negative and returns/refunds are positive.
- Repeat these steps for each of your personal accounts. One file per account.
- Note: The process above results in a simple three column spreadsheet. You may make one of your own without downloading from your bank or credit card. Though people often find that going through the above steps helps them catch business activity they forgot about.
Upload Transactions To QBO
- Select the left menu item Banking (or Transactions) and it sub-menu item Banking.
- On the page that pops up select Upload transactions manually. This is a one-time screen. For future uploads, the screen will look different. On the right side of the screen select the dropdown arrow next to the Link account button, and then select Upload from file.
- Select Browse and choose the file you downloaded from your bank.
- Select Open, then select Next.
- From the QuickBooks Account drop-down list, select the Manual Import account then select Next. Note: if you are using this process to import activity from a connected business account, then pick that account in the drop-down list.
- Map the QBO fields on the left to the CSV columns on the right by using the drop-down list for each field.
- Select Next.
- Select the checkboxes of the transactions to import and select Next.
- Select Yes.
- Select Let's go! when the Import completed notification appears.
- Follow these steps to categorize what you can and we will review the rest in your training.