How to Download Bank Feed Transactions in QuickBooks
QuickBooks Desktop supports bank feeds. Using this feature, you can connect your business’s credit card and bank accounts to your QuickBooks Desktop account. When you make a financial transaction, it will then appear automatically in your QuickBooks Desktop account. To take advantage of this feature, however, you must download your bank feed transactions in QuickBooks Desktop
Download With Direct Connect
You can download your bank feed transactions using Direct Connect. Start by clicking the “Banking” menu in QuickBooks Desktop. Under “Bank Feeds,” choose “Bank Feeds Center.” You can then choose the credit card or bank account that you want to connect to your QuickBooks Desktop account.
Selecting “Download Transactions” will initiate the download process. QuickBooks Desktop will automatically download transactions from the connected credit card or bank account. You won’t have to manually enter the transactions. Rather, QuickBooks Desktop will take this burden off your shoulders by downloading them automatically.
Download With Web Connect
In addition to Direct Connect, you can download your bank feed transactions using Web Connect. Start by clicking the “Banking” menu and choosing “Bank Feeds,” followed by “Banking Center.” You can then select your bank and choose “Download Transactions.”
Web Connect works by allowing you to log in to your account online. Upon clicking the “Download Transactions” link, you’ll be redirected to the login page for your credit card or banking account. You can then log in to your account, at which point QuickBooks Desktop will begin to download transactions from your account.
Reviewing Transactions
You may want to review transactions after downloading them. To review transactions, go back to the “Banking” menu and select “Bank Feeds,” followed by “Bank Feeds Center.”
In the Bank Feeds Center, you should see several categories. Each category features a transaction type. You can go through these categories to review your transactions.
In Conclusion
You don’t have to manually enter your business’s financial transactions in QuickBooks Desktop. An easier solution is to download them. There are two primary ways that you can download transactions from a credit card or bank account: Direct Connect or Web Connect. Direct Connect will automatically download the transactions once you’ve connected the account. Web Connect, in comparison, requires you to log in to your account online. Regardless, you can use either of these methods to download bank feed transactions in QuickBooks Desktop.
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5 Financing Solutions for Businesses With Bad Credit
If your business has bad credit, you may struggle to secure financing for it. Lenders will typically check businesses’ credit when determining whether to approve or reject their applications for a business loan. Businesses with good credit are more likely to get approved for a loan than those with bad credit. Even if your business has bad credit, though, there are still financing options available for it. Below are five financing solutions for businesses with bad credit.
#1) Accounts Receivable Financing
Accounts receivable financing is a financing solution that doesn’t require stellar credit. As the name suggests, it involves the use of accounts receivable. Consisting of unpaid invoices, you can use your business’s accounts receivable to secure financing. Accounts receivable financing is essentially a type of loan that’s backed by accounts receivable as collateral.
#2) Factoring
Another accounts receivable-based financing solution is factoring. The terms “accounts receivable financing” and “factoring” are often used interchangeably. However, they aren’t the same. Accounts receivable financing is a loan that’s backed by unpaid invoices as collateral. Factoring is a financing solution in which a business sells its unpaid invoices to a third party. With factoring, you can sell these invoices for up to 90% of their face value. Even if your business has bad credit, you can still finance it with factoring.
#3) Merchant Cash Advance
A merchant cash advance is an option to consider if your business has bad credit. It involves a bank or lender forwarding money to a business based on the business’s future credit card and debit card sales. If your business processes a lot of credit card and debit card sales, you can leverage a merchant cash advance to secure financing for it.
#4) Secured Line of Credit
Many businesses with bad credit use a secured line of credit. A line of credit is a revolving credit account from which you can draw capital. Unlike with loans, it doesn’t consist of a fixed amount. Rather, lines of credit have a maximum limit, and you can continue to draw capital from them as long you stay within this limit. Secured lines of credit are the same; the only difference is that they are backed by some type of collateral.
#5) Loan With Personal Guarantee
If your business has bad credit, you may want to consider a loan with a personal guarantee. A personal guarantee is a pledge to repay a business loan using your own personal assets. Without it, lenders may reject your business’s application for a loan if your business has bad credit.
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How Does a Tax Extension Work? Get the Facts
Are you running late on your taxes? While tax laws in the United States change from year to year, the Internal Revenue Service (IRS) typically requires Americans to file their taxes by April 15. Some taxes, however, are more complex than others. Even if you’re unable to prepare and file your taxes by the due date, however, you can file an extension.
The Basics of a Tax Extension
A tax extension is exactly what it sounds like: an extension of your taxes. It extends the due date of your taxes. By filing a tax extension, you’ll have more time to prepare and file your taxes.
How a Tax Extension Works
There are a few different ways that you can file a tax extension. The IRS offers a Free File tool for tax extensions. Regardless of your income, you can use this online tool to extend the due date of your taxes. Alternatively, you can file a tax extension when paying some or all of your estimated income tax. There’s an option to file a tax extension when submitting estimated tax payments using Direct Pay, EFTPS or a credit or debit card.
Whether you use the Free File tool or the estimated payments option, you’ll have an extra six months to prepare and file your taxes after filing an extension. As previously mentioned, April 15 is typically the date on which taxes are due. A tax extension will extend the due date of your taxes to October 15.
What’s the Penalty for Filing a Tax Extension?
There’s no penalty for filing a tax extension. With that said, you’ll still have to pay all of your taxes by the normal due date, which is typically April 15.
A tax extension only extends the date by which your taxes must be filed; it doesn’t extend the date on which your tax liabilities must be paid and satisfied. If you owe money with your taxes, you must pay the IRS by the normal due date of April 15, regardless of whether you file an extension.
You should still consider filing a tax extension if you’re unable to submit your taxes by the normal due date. With a tax extension, you won’t be slapped with a late filing penalty. If you owe any money, though, you’ll need to pay the IRS by the normal due date. A tax extension works by pushing back the date by which your taxes must be filed. Contrary to common belief, it doesn’t extend the due date of tax payments.
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The Beginner’s Guide to Memorized Reports in QuickBooks
When viewing reports in QuickBooks, you may notice an option to memorize them. Report memorization is a native feature of the popular accounting software. Rather than using the default settings for a report, you can use “memorized” customization settings. For a better understanding of memorized reports and how this feature works, keep reading.
What Are Memorized Reports?
Memorized reports is a feature in QuickBooks that’s designed to save all of the customization settings of a given report. Running reports will provide insight into your business’s financial activities. You can use them to track your business’s revenue, expenses, cash flow, liabilities and more.
If you customize the settings of a report, however, you may want to save them. This is where memorized reports come into play. Memorizing a report will save all of its customization settings. You can then apply those customization settings automatically to other reports.
How to Memorize a Report
You can memorize a report in just a few easy steps. In the reports window, you should see an option for “Memorize.” QuickBooks will then prompt you to enter a name for the memorized report.
Keep in mind that the name must be unique. If you save the memorized report under the same name as the original report, you’ll overwrite the latter.
After opening the report, clicking the “Memorize” option and choosing a name, you can complete the process by selecting “OK.” The report should now be memorized.
How to Access a Memorized Report
After memorizing a report, you may want to access it. While logged in to QuickBooks, you can access a memorized report by clicking the “Reports” menu and choosing “Report Center.” Next, click the “Memorized” tab in the report window.
If you placed the memorized report in a group, you can choose the group on the left-hand side of the report window. Alternatively, choose the “Uncategorized” option. This will filter your available memorized reports. Once you’ve found the memorized report you wish to access, double-click it. The memorized report will then open in QuickBooks so that you can view it.
There are other ways to access a memorized report in QuickBooks. You can use the Memorized Report List, for instance, or you can access them directly from the Reports menu. Regardless, after memorizing a report, you may want to access it. You can use any of the methods described here to access a memorized report in QuickBooks.
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What Is an Audit Trail in Accounting?
Does your business have an audit trail? Businesses of all shapes and sizes can benefit from an audit trail. You can use it to cut unnecessary expenses, improve cash flow and prepare your business’s taxes. What is an audit trail exactly, and how does it work?
Overview of Audit Trails
An audit trail is a chronological record of a business’s financial transactions, including receipts, sales invoices, bank statements and other documents. It’s designed to track the flow of money from the source to the financial statements. When viewing an audit trail, you’ll see your business’s financial transactions as well as supporting information about those transactions.
How Audit Trails Work
Audit trails work by providing information about financial transactions. There are different types of audit trails, some of which contain more information about financial transactions than others. A complete audit trail, for instance, may contain the time of the transaction, the parties involved (e.g. your business and a vendor or customer), the location and the amount. Other audit trails are simpler and contain less information. Regardless, all audit trails contain information about financial transactions.
Audit trails are designed to record the sequence of events in the financial transaction process. When your business receives an invoice from a supplier, for instance, the invoice is recorded in the accounts payable ledger, along with the date, amount and other relevant details.
The Importance of an Audit Trail
Some business owners assume an audit trail isn’t necessary. They believe it’s a waste of time, so they focus their time and energy elsewhere. But the truth is that all businesses can benefit from an audit trail.
An audit trail ensures the accuracy and integrity of financial information. By featuring financial transactions and supporting information, it shows that the financial transactions were properly recorded and authorized. An audit trail also allows auditors to verify the completeness of financial statements and detect any errors, fraud or irregularities.
Many businesses use audit trails internally. With an audit trail, you can go back and review all of your business’s financial transactions to ensure they are correct. Some financial transactions may contain discrepancies. It only takes a single discrepancy to throw off your entire business’s books. An audit trail can help you can find and fix discrepancies so that your business has cleaner books.
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QuickBooks 101: How to Create a Custom Email Template
You don’t have to send the same generic-looking invoice or receipt to all of your business’s customers. If you use QuickBooks, you can create custom email templates for forms such as these. It’s a native feature of QuickBooks Desktop. Custom email templates serve the same purpose as the default forms, but they allow you to customize the included elements to fit your business’s needs. How do you create a custom email template exactly?
Switch to Single-User Mode
Make sure your QuickBooks account is in single-user mode. QuickBooks offers single-user mode and multi-user mode. The former means only a single user can access the company file, whereas the latter means multiple users can access the company file. If your QuickBooks account is currently in multi-user mode, go ahead and switch it to single-user mode.
Single-user mode is available by clicking the “File” menu in QuickBooks and selecting “Switch to Single-User Mode.” Switching to single-user mode will ensure that you have the necessary permissions to create a custom email template.
Choose a Transaction Type
When you’re ready to create a custom email template, click the “Edit” menu and choose “Preferences.” You should see an option for “Send forms.” Clicking this option will reveal a “Company Preferences.” After selecting the “Company Preferences” tab, choose “Email” as the default delivery method.
The “Email Templates” menu has several different types of transactions from which you can choose, such as invoices, estimates, statements, sales orders, sales receipts, purchase orders, overdue invoices and more. Choose the transaction type that you want to create the custom email template for. Keep in mind that you can create multiple email templates for any given transaction type.
Add the Template
Upon choosing a transaction type, you should see an option for “Add Template.” Clicking the “Add Template” option will add it to your QuickBooks account.
QuickBooks will require you to enter a name for the template. The name won’t be shown in the actual form, meaning your business’s customers or vendors won’t see it. Nonetheless, you should choose a memorable and relevant name so that you can recognize the template internally. After naming the template, you can then customize it. You can enter a custom subject line and body text, and you can add dynamic data t using the “Insert Field” option. When finished, click “Save” to complete the process and save your new custom email template.
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How to Prevent Windows Firewall From Blocking QuickBooks
Is your computer’s firewall preventing you from accessing QuickBooks? The Windows operating system (OS) comes with a built-in firewall. It will automatically scan incoming and outgoing network traffic. If there’s a threat, the firewall will block it. But the Windows firewall often flags otherwise safe and legitimate programs as being threats. It may even block QuickBooks. When blocked, you may still be able to open QuickBooks, but you won’t be able to connect it to the internet.
Use the File Doctor Tool
If Windows firewall is blocking your locally installed copy of QuickBooks Desktop, you should start by running the File Doctor tool. It’s available in the QuickBooks Tool Hub, which you can download here. After opening QuickBooks Tool Hub, click “Company File Issues.” You should then see an option to run the File Doctor tool.
The File Doctor tool will prompt you to select your company file. After choosing your company file, click “Check your file and network.” The File Doctor tool will then scan your company file and network for potential problems.
Change the Firewall Settings
In some cases, the File Doctor tool will resolve firewall-related problems. In others, you may need to change the firewall settings.
You can change the settings for Windows firewall in just a few easy steps. While viewing the desktop screen on your computer, navigate to the search box and enter “firewall.” Next, open the Windows Firewall settings page from the search results list and choose “Advanced Settings.”
The settings page should have an option to create new rules. Firewalls, of course, are based on rules. They allow or deny network traffic based on rules. You can create a new rule that allows QuickBooks to access the internet from your computer.
Don’t Forget Antivirus Software
Antivirus software can have similar effects on QuickBooks — as well as other locally installed programs — as a firewall. It may wrongfully flag Quickbooks as being a threat, in which you may not be able to access or run the accounting software.
If you’re struggling to use QuickBooks, you should check your antivirus software settings. There may be an option to add “exceptions.” You can specify programs, such as QuickBooks, that the antivirus software will ignore. Regardless, antivirus software and firewalls can both block QuickBooks. The good news is that you can typically remove the block by using the File Doctor tool, changing the firewall settings or changing the antivirus software settings.
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What Does a Negative Cash Balance on a Balance Sheet Mean?
Is your business’s balance sheet showing a negative cash balance? Of all the different accounting documents, balance sheets are among the most important. While some businesses show a positive cash balance on their balance sheet, though, others show a negative cash balance. What does a negative cash balance mean exactly?
The Basics of a Balance Sheet
To better understand what a negative cash balance means, you must familiarize yourself with the basics of a balance sheet. A balance sheet is a financial document that summarizes the financial balances of a business (or a person). It features three primary components: assets, liabilities and shareholders’ equity.
You can refer to a balance sheet to gain a better understanding of your business’s financial health during a particular period. Maybe you want to measure your business’s financial health for the previous quarter, or perhaps you want to measure your business’s financial health for last year or even five years ago. Regardless, you can generate a balance sheet for that period. The balance sheet will summarize your business’s assets, liabilities and shareholders’ equity for the specified period.
Writing Checks
One of the most common causes of a negative cash balance on balance sheets involves writing checks. If you write a check and your business doesn’t have sufficient funds in its checking account to cover it, you may end up with a negative balance.
Millions of businesses still write checks to pay for the goods and services needed to carry out their operations. When writing checks, though, you should check to ensure that you have the appropriate funds to cover them. If there are insufficient funds in your business’s checking account, you may end up with a negative balance on your business’s balance sheet.
Another instance in which writing checks may lead to a negative cash balance is if you rewrite a check but fail to void the original check. A supplier, for instance, may not receive the original check that you send them, in which case the supplier may request a new check. You’ll need to void the original check so that it doesn’t throw off your business’s balance sheet. If you forget to void the original check, you may end up with a negative cash balance on your business’s balance sheet.
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Why You Should Use QuickBooks Cash Flow Planner
QuickBooks is packed with useful features, one of which is cash flow planner. As the name suggests, cash flow planner is designed to help businesses plan and track their cash flow. Regardless of what your business sells — products, services, etc. — your business probably has money coming into it and going out of it. The term “cash flow” is used to describe this incoming and outgoing money.
What Is Cash Flow Planner?
Cash flow planner is a tool in QuickBooks that can forecast your business’s cash flow. It works by automatically analyzing your business’s historical cash flow and using that information to predict your business’s future cash flow. Cash flow planner will create forecasts revealing your business’s expected cash flow over the next 90 days.
Benefits of Using Cash Flow Planner
With cash flow planner, you’ll have a better understanding of your business’s future cash flow. You can essentially identify cash flow problems before they occur. If your business is expected to have little or no cash on hand in the near future, for instance, cash flow planner may reveal this upcoming problem. You can then cut back on your business’s expenses, increase your business’s revenue or otherwise secure more cash.
You can always manually review your business’s historical cash flow, but cash flow planner automates this process so that you can focus on other activities. Whether you currently use QuickBooks — or if you’re thinking about switching to the popular accounting software — you should take advantage of cash flow planner.
How to Use Cash Flow Planner
Before you can use cash flow planner, you’ll need to link your business’s credit card and bank accounts to your QuickBooks account. Doing so will allow QuickBooks to analyze your business’s historical cash flow, which is necessary for QuickBooks to predict your business’s future cash flow.
Once you’ve linked your business’s credit card and bank accounts to your QuickBooks account, you can access cash flow planner by navigating to “Cash flow” and choosing “Planner.” You should see a settings icon on the cash flow planner page. Clicking this icon will allow you to customize the tool’s settings. You can select LinkedIn accounts, choose transaction types, specify a threshold and more. When finished, click “Save.”
You can export the cash flow planner by choosing “Export as PDF.” QuickBooks will then export the planner to your computer via a Portable Document File (PDF).
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The Pros and Cons of a Merchant Cash Advance for Your Small Business
When researching financing options for your small business, you may come across merchant cash advances. It’s an alternative form of financing that involves a cash advance based on future credit card and debit card sales. Assuming your small business generates credit card and debit card sales, you can use them to obtain a merchant cash advance. There are both pros and cons associated with a merchant cash advance, however.
Pro: Fast
You can obtain a merchant cash advance in very little time. While traditional business loans can take weeks or even months to obtain, merchant cash advances only require a few days on average. As long as your small business meets all of the necessary requirements, you can get a merchant cash advance in just a few days.
Pro: Not Credit Based
Merchant cash advances aren’t credit based. Why does this matter? Not all small businesses have credit. Even if you have stellar credit, your small business may not have any credit. This isn’t a problem with a merchant cash advance. As previously mentioned, merchant cash advances are based on future credit card and debit card sales. Lenders who offer them pay little or no attention to credit. Instead, they focus on credit card and debit card sales.
Pro: Adjustable Payments
You’ll have to make payments to the lender with a merchant cash advance. The good news, though, is that these payments are adjustable. You won’t have to pay a specific amount each month. Instead, merchant cash advances involve adjustable payments. The amount of your payments will depend on your small business’s credit card and debit card sales. The more card-based transactions your small business processes, the more you’ll typically have to pay.
Con: High Interest Rate
While they technically aren’t loans, merchant cash advances still have interest. You’ll have to pay interest on the amount of your small business’s future credit card and debit card sales forwarded by the lender. And interest rates for merchant cash advances are typically higher than those for traditional business loans.
Con: Doesn’t Build Credit
If you’re looking to build credit, you may want to choose a different financing method for your small business. A merchant cash advance won’t build credit for your small business. You can build credit using a traditional business loan, but you can’t build credit using a merchant cash advance.
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