How to Enter Bank Statements into QuickBooks?

A bank statement summarizes the monthly transactions for all your accounts and is typically sent by the Bank to the account holder every month in paper or digital form. Bank statements hold checking and savings account information, such as account numbers and a detailed list of deposits and withdrawals.

QuickBooks automatically downloads transactions up to a certain date once you link your bank and credit card accounts. However, you can manually upload transactions if you need to enter old transactions or can’t find your Bank or connect it to QuickBooks. This keeps your financial records up-to-date and organized. Entering accurate bank statements also allows you to categorize expenses, track income, and streamline reconciliation so you can match your records and actual bank balance.

Whether you use the QuickBooks bank feed feature to import your transactions automatically or prefer to enter them manually, you need to maintain precise bank records and make informed decisions to manage your finances.

Reasons for Manual Bank Transaction Uploads into QuickBooks

When you connect your Bank and credit card accounts to QuickBooks, the automatic transaction download is enabled, but it is not always preferable. There are a few cases where you may need to manually import your transactions instead.

Below are the reasons why:

• Your Bank isn’t Supported by QuickBooks: Not all banks and financial institutions provide transaction downloads that integrate with QuickBooks Online. For unsupported banks, manual import is the best option.

• You Want Historical Transaction Data: When initially setting up QuickBooks Online for bookkeeping, you may need historical transactions from the past year or more. Automatic bank feeds can only go back to 90 days, so manual import allows you to access and upload your full transaction history. 

• You have Transactions from Multiple Sources: Along with bank feed transactions, you may need to import payroll transactions, cash expenses, or other data from sources besides your Bank. Manual import offers flexibility to consolidate transactions from multiple places.

• You Prefer Regular Uploads for Better Control: Some businesses prefer to manually export and import transactions in order to review and categorize everything first so they can avoid errors like double-data entry, discrepancies, missing transactions, etc. Manual import gives you more control over the timing and steps.

Steps to Enter Bank Statements into QuickBooks

If you’re unable to connect your Bank or credit card to QuickBooks Online, or if you want to record past expenses, you can manually upload transactions, receipts, or bills into the system.

There are two different ways to upload your bank transactions: manually upload your receipts and bills into QuickBooks Online, Let’s have a look:

• Upload transactions
• Upload your receipts and bills (discover the Snap Receipt feature of QuickBooks Mobile)

Manually Upload Transactions into QuickBooks

For Customers using QuickBooks Online 

Step 1: Pick a start date

You must know the date of the oldest existing transaction currently in the account to avoid entering duplicates:

1. Navigate to Settings and then choose a Chart of accounts.
2. Locate the account you wish to upload the transactions into. Then, click on the View Register.
3. Find the oldest transaction, then enter the date.

Note: Generally, the oldest transaction is the opening balance.

Step 2: Get transactions from your Bank

To get transactions from your Bank, you need to download CSV files of your transactions.

Let’s see how:

1. Log in to your bank or credit card’s website.
2. Now, follow all the instructions on how to download CSV files of your transactions to your computer. Every financial institution has different methods.
3. Ensure that the date range for the download starts at least one day prior to your oldest transaction.
4. Download your transactions and save the file somewhere you can easily find it, like your desktop.

Tip: Your Bank may offer a few file formats. If possible, select the QuickBooks Online data (QBO) format. These are formatted specifically introduced for QuickBooks Online. You can also upload transactions from a CSV file or other supported file types.

Step 3: Review the file format and size

Check the file you download from your Bank and make sure it’s in the correct format before you upload it.

Here are the things you need to review to prevent errors:

Note: The maximum file size is 350 KB. You can shorten the date range and download transactions in small batches if your file size is too big.

1. Remove the zeroes (0) from the file and leave those cells blank.
2. Fix any transactions that display numbers in the Description column.
3. Delete the word amount from the Credit or Debit column header. They should only say “Credit” and “Debit”.
4. Review that all dates follow the same format. We recommend you use the dd/mm/yyyy format. 
5. If you’re a Mac user, make sure to save the file as a Windows CSV file.
6. Some banks add the day of the week under the Date column (for example, 20/11/2018 TUE). You’re required to remove the day of the week. For this, split the date and the day of the week into different separate columns.

Here’s the CSV file format

You can only upload a CSV file in QuickBooks that has either 3-column or 4-column format.

Step 4: Manually Upload the Transactions

1. Move to Transactions and then choose Bank Transactions.
2. Click the blue tile for the account you wish to upload the transactions into.
3. Select the Link account dropdown menu and then choose Upload from file.

Note: If your account has not yet been connected to online banking, press the Upload transactions tab.

4. Hit Drag and drop or select files and choose the file you downloaded from your Bank. Then, press Continue. 
5. Under the QuickBooks Account dropdown menu, choose the account you want to upload the transactions into. Then, click on Continue. 

Note: If you’re new to QuickBooks, you may not have an account to upload the transactions into. If you don’t see one, press Add new in the dropdown menu to create a new bank account.

6. Follow all the on-screen steps to match the columns on the file with the correct fields in QuickBooks. Then, hit the Continue tab.
7. Choose the transactions you would like to import. Then, press Continue.
8. Click Yes to confirm, and then hit the Done tab.

Note: There’s a 1,000-line limit per upload.

Step 5: Categorize the Transactions

Now that your transactions are in QuickBooks, it’s time to match and categorize them. The transactions go into your accounts after you review them. QuickBooks Online also enters certain details automatically if you set up any banking rules or if it recognizes transaction descriptions.

Review and Categorize Downloaded Transactions:

1. Navigate to Transactions and then choose Bank Transactions.
2. Click the account you want to review.
3. Select the For Review tab.

QuickBooks sends downloaded transactions to the For review tab and suggests categories for each transaction.

Review them one by one:

• If the transaction says Add:

1. Click Add if the suggested Category is correct.
2. Change the Category by selecting one from the dropdown or adding a new one.

• If the transaction already exists in QuickBooks, you may have the option to match or view multiple matches. Match means QuickBooks matched the downloaded transaction with one you already entered, like an invoice, a bill, a receipt, or a payment. This links them together so you don’t get duplicate entries.

1. Move to Transactions, and then choose Bank Transactions.
2. Locate a downloaded record. Search for “matches found” in the Category or Match column.
3. Select the downloaded record to expand the view. Note the date, Description (or Bank detail), and amount spent or received. 
4. Review the Suggested matches for any possible matching transactions already entered in QuickBooks.
5. Click on the link next to each match to get more details. Suggested matches will be the same amount as and from a similar date range as the downloaded transaction. Ensure that the match is correct.

Note: If the suggested matches are not accurate, click Find other matches to look for other transactions.

6. Choose a match if it’s correct, then hit the Match icon to match it.

Note: You can create a bank rule that automatically categorizes transactions for you. You can also disable suggestions if you want to manually categorize your transactions. For this, head to Settings and then uncheck Enable suggested categorization under Bank transactions.

Step 6: Reconcile the Transactions

Reconcile the transactions that you’ve uploaded. This is to make sure that all transactions are recorded correctly in QuickBooks. If you’re reconciling an account for the very first time, review the opening balance. It needs to match the balance of your real-life bank account for the day you decided to start tracking transactions in QuickBooks.

Once you have your monthly Bank or credit card statement, you can start reconciling. If you’re reconciling multiple months, do them one statement at a time, starting with your oldest statement:

1. Be sure you match and categorize all of your downloaded transactions if your accounts are connected to online banking.
2. Navigate to Settings and then select Reconcile. If you’re reconciling for the very first time, click on Get Started.
3. Choose the account you want to reconcile from the Account dropdown menu. Check that it’s the same one on your statement.

Important: If you see a message about a previous reconciliation, click on We can help you fix it. You need to fix this before you begin.

4. After this, review the Beginning balance. Ensure that the beginning balance in QuickBooks matches the one on your statement. 
5. Type the Ending balance and Ending date on your statement. Some banks call the ending balance a “new balance.” (If this account was reconciled before, look below the Ending date field at the last statement ending date, making sure you’re reconciling the following month’s statement).
6. If you see it, review the Last statement ending date. This is the end date of your last reconciliation. Your current bank statement should start the day after.
7. Once you’re ready to start, press Start reconciling.

For Customers Using QuickBooks Sole Trader

Step 1: Get Transactions from your Bank

1. Log in to your bank or credit card’s official website.
2. Now, follow all the instructions on how to download CSV files of your transactions to your computer. Every financial institution has different methods.
3. Ensure the date range for the download starts at least one day before your oldest transaction. 
4. Download your transactions and then save the file somewhere you can easily find it, like your desktop. 

Tip: Your Bank may provide a few file formats. If possible, choose the QuickBooks Online data (QBO) format. These are formatted specifically introduced for QuickBooks. You can also upload transactions from a CSV file or other supported file types. 

Step 2: Review the File Format and Size

Review the file you download from your Bank and make sure it’s in the correct format before you’re going to upload it.

Here are the things you need to check to prevent errors:

Note: The maximum file size is 350 KB. You can shorten the date range and download transactions in small batches if the file size is too big.

1. Remove the zeroes (0) from the file and leave those cells blank.
2. Determine any transactions that show up numbers under the Description column.
3. Delete the word amount from the Credit or Debit column header. They will only say “Credit” and “Debit”.
4. Verify that all dates follow the same format. We recommend you to use the dd/mm/yyyy format.
5. If you’re a Mac user, make sure to save the file as a Windows CSV file.
6. Some banks add the day of the week in the Date column (for instance, 20/11/2018 TUE). You need to remove the day of the week. For this, split the date and the day of the week into different separate columns.

Step 3: Manually Upload the Transactions

1. Move to Transactions and choose Bank transactions.
2. Click on the New transaction dropdown menu and then choose Upload bank statement.
3. Select Drag and drop or click on files and opt for the file you downloaded from your Bank. Then, press Continue.
4. Choose the account you want to upload the transactions into from the Account name dropdown menu. Then, hit the Continue tab.
5. Follow all the on-screen instructions to match the columns on the file with the correct fields in QuickBooks. Then, click Continue.
6. Hit the transactions you would like to import. Then, press Continue.
7. Click Yes to confirm and then select Got it.

Note: There’s a 500-line limit per upload.

Step 4: Review your Categorized Transactions

QuickBooks Sole Trader uses AI to categorize your transactions based on how you, and other customers have categorized similar transactions. In some rare cases QuickBooks Sole Trader miscategorises a transaction, you can edit the transaction to choose the right Category for your bank transactions to accurately represent your income and expenses. 

Here’s how to categorize bank transactions in QuickBooks Sole Trader. 

Step 1: Download the Latest Bank and Credit Card Transactions 

1. Move to Transactions.
2. Click on Refresh. 

Step 2: Review and Categorize Downloaded Transactions

1. Review your downloaded transactions for accuracy on the Transaction page. 
2. Click on the Type column header to sort your Business and Personal transactions.
3. For any transactions with the wrong or no category:

• Choose the one you want to change from the Category column. 
• Under the dropdown menu, select a category that best describes the reason for the transaction.  

Upload & Categorize the Transactions, Receipts, and Bills into QuickBooks Online

Upload Receipts, and Bills from your Mobile Device

You can use the QuickBooks Online mobile app to snap and upload receipts and bills from your mobile device.

Note: If you haven’t already done so, download the QuickBooks Online app for iOS or Android.

1. Open the QuickBooks Online mobile app.
2. Click on the Menu icon.
3. Select Receipt snap.
4. After this, choose the Receipt camera and snap a photo of your receipt or bill.
5. Hit Use this photo, then press Done. 

Categorize and Edit the Transactions on your Mobile App

1. From the Menu bar, hit Transactions and the Bank you want to work with.
2. Select the transaction you wish to categorize.
3. Depending on your mobile device:

• iOS: Tap > beside a field, choose an option, and then click on Accept.
• Android: Under Category, tap >, select a category, and then hit the Confirm tab.

4. Click Accept.

Upload the Receipts, and Bills from your Laptop or Computer

1. Log in to QuickBooks Online software.
2. Move to Transactions and then click on Receipts.
3. Choose Upload from the computer.

Note: Every image or file should have only a single receipt or bill. 

Categorize and Edit the Transactions on a Web Browser/ your Computer

This means QuickBooks didn’t find an existing matching transaction. It started a brand new transaction for you using the info from your Bank or credit card instead.

1. Locate a downloaded transaction using the Add option under the Action column.
2. Now, choose the transaction to expand the view. 
3. Review the recommended Category. This is the account QuickBooks wants to categorize the transaction into. For instance, QuickBooks suggests categorizing petrol expenses under expenses related to travel. You can also change the Category and keep it in a different account.
4. Select the supplier or customer as required. 

Note: If you think you already entered this transaction into QuickBooks, click on the Find match option. Check the list of possible matches and choose one if you find it.

5. Verify and add any other information that may be mandatory or missing.
6. When everything is OK, press Add.

Automatically Download Bank Feed Transaction in QuickBooks Desktop 

Once you set up your accounts for bank feeds, you can start downloading transactions from your banks.

Here are a few things to keep in mind:

• Backup your QuickBooks company file before you start downloading.
• You can’t record transactions into the same QuickBooks Desktop company file more than once. 
• However, your Bank may be able to reopen the transactions on their side so QuickBooks can download them again. Reach out to your Bank to get help with this.
• Web connect only works with .qbo files. Other types like QFX and QIF Quicken files won’t work. There are a few third-party applications that can handle QIF available on the Intuit Marketplace.

Upload your Bank Transactions with the Bank Feed Feature

Banks offer two ways to download bank transactions. You can select any one method to learn how to use them.

1. Direct Connect
2. Web Connect

Download Using Direct Connect

The first time you connect, QuickBooks automatically downloads the maximum number of transactions available from your Bank. Depending on the Bank, this can give you up to a year of historical transactions. Many banks may only download 90 days of historical transactions.

1. Hover over the Banking menu.
2. Choose Bank Feeds and then click on Bank Feeds Center.
3. From the Bank Accounts list, select the account you want to connect.

• (Optional) click the Online Checks link to edit or cancel a payment under the Send items to your bank section.

4. When you’re ready to get your transactions, hit the Download Transactions icon.

Note: If you’ve already downloaded the transactions but haven’t reviewed them, click on Transaction List. 

5. Select Synchronize.

• If you only want to download transactions for a specific account, click Sync this account.
• However, if you want to download transactions for all your accounts at the same Bank, hit Sync All for this Bank.

6. Enter your PIN or password to connect with your Bank under the Access to window.
7. Press OK.

After downloading the transactions, you need to match or add any new ones.

Note: You can delete any remaining (previously matched/added) transactions. Once you delete your downloaded transactions, you won’t be able to download them again. This may help you to avoid duplicate entries.

Download Using Web Connect

Some banks allow you to set a date range for downloads. If your Bank doesn’t have this option, you automatically get the maximum number of transactions available the first time you download. This may be 30, 60, 90 days, or more depending on your financial institution.

There are two ways to import transactions via Web Connect:

If you’re using QuickBooks Desktop

1. Navigate to Banking.
2. Choose Bank Feeds and then click on Banking Center.
3. Locate your Bank and select Download Transactions. This opens a browser window to your Bank’s official website.
4. Sign in to your Bank’s website to download the Web Connect file.

If you’re outside of QuickBooks Desktop

1. Open a web browser and access your Bank’s official website.
2. Log into your bank account using the normal process.
3. Download your transactions as a QuickBooks Web Connect (.qbo) file.

Note: Every Bank has a different method for downloading QuickBooks Web Connect files. If you’re not sure how to do it, visit your Bank’s official website and look for their methods. If you can’t find any, reach out to your nearby branch for help.

4. When you have the Web Connect file, follow the steps to import it into QuickBooks Desktop.

Post-Upload Steps 

Once you upload your downloaded bank transactions into QuickBooks, you can see all the new transactions listed under the appropriate account name. If you have additional transactions in the future, simply repeat the same process:

• Download the new transactions from your financial institution’s official website, setting up the date range to avoid duplicates.
• Now, upload the transaction file into the same QuickBooks account.

Always remember to take time to properly categorize and match any new transactions before reconciling and double-checking all your transactions. 

Bottom Line!

Manually entering bank and credit card transactions provides flexibility to get data into QuickBooks software from any source, even unsupported financial institutions. It is important to record correct bank transactions for accurate bookkeeping, real-time tracking, and streamlined bank account reconciliation; you need to properly record your bank statements. 

You must review each transaction to ensure it is correctly categorized and then match these transactions to existing entries or add new ones if needed. Updating and reconciling bank statements within QuickBooks at regular intervals ensures accurate financial records, improves reporting accuracy, and helps to make better financial decisions for your business.

Disclaimer: The information outlined above for “How to Enter Bank Statements into QuickBooks?” is applicable to all supported versions, including QuickBooks Desktop Pro, Premier, Accountant, and Enterprise. It is designed to work with operating systems such as Windows 7, 10, and 11, as well as macOS.