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How to Manage Payment Methods with QuickBooks Online?

custom_only.pngWe often get asked by our QuickBooks Online integrated clients about how to manage payment methods in Receipt Bank.

While it is incredibly easy to initially set up your credit and debit cards in Receipt Bank under the payment methods list, it may not be so obvious how to manage payments made with cash, by check, or any other method that can’t be directly tied to a credit card number.

 1.Cash

  • It will be best if you set up a 'Cash' payment method that can be applied to all future expense items that were paid in cash with money in the company cash fund.

While we do not make recommendations on how best to manage your books, we can say that the majority of our clients have set up a 'petty cash' account within their QuickBooks Online to keep track of cash assets for their company.

  • For cash receipts or payments that need to be reimbursed (cash that is not a company asset that needs to be paid back to an employee or client), you can create a second cash payment method in Receipt Bank as 'Cash to Reimburse' (or however you want to name it). You will then link this payment method to whatever account in QuickBooks Online that will eventually make the reimbursement payment.
  • Usually 'cash' receipts do not have a credit card number that can be extracted automatically and our system will not assume that the payment was made in cash.

This is why you might like to consider using supplier rules to your advantage. You can also set a default payment method (within the payment methods list) on a user by user basis so that the system assumes anything without a credit card number is 'cash', if you prefer.

 2.Check

Checks will be dealt with similar to cash. 

It is highly advised that you do not write the check number on items and do not use the check number as a reference in Receipt Bank. This can confuse our system into thinking you are listing a new payment method (for example, a check number ending in 2233 would be picked up as a credit card ending in 2233).

Rather, treat checks just like 'Cash' listed above. Have a standard 'check' payment method you can manually assign to items that is linked to your checking account.

 3.Credit Cards

  • Most financial institutions will treat credit cards as if they were their own separate account with its own live transaction feed that can be linked into QuickBooks Online.
  • However, some institutions do not provide this functionality with their credit cards. If you only track your credit card as a monthly bill to be paid, this section will be for you. Otherwise, please treat your credit card the same as your checking and other bank accounts within QuickBooks Online.
  • If your bank does not provide an online feed that can link to QuickBooks Online for your credit card, you will link your credit card in Receipt Bank to the bank account that you pay your bill from at the end of the month. This will allow your accounts to reconcile properly and allow you to track your credit card expenses within your chart of accounts.

 4.PayPal

If you maintain your PayPal account as a bank account in QuickBooks Online (this can be done with a manual import of transactions) you can use 'PayPal' as a payment reference in Receipt Bank for transactions.

 5.Direct Debit

If you pay certain bills through direct debit of your bank account, you would treat direct debit as a payment reference.

The best thing to do would be to set Direct debit' as the payment method in Receipt Bank and link it to the bank account in QuickBooks Online that your bills are paid out of.

You would then set supplier rules that would apply 'Direct debit' as a the payment method to all bills/invoices from suppliers that direct debit your account.

 

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