Why Use a Free Business Bank Account and QuickBooks?

Integration for Easy Bank Reconciliation

Staying on top of your finances is vital as a small business owner. One essential task is managing and reconciling your bank transactions with your accounting records. This is where the integration between a free business bank account or challenger account and Intuit QuickBooks comes in.

In this article, we will look into the advantages of a free business bank account, Intuit QuickBooks Online and how they work together.

What is a Free Business Bank Account?

A free business bank account is an account specifically designed for small businesses. Here are the advantages of free bank accounts:

• No monthly fees: This can save you significant money, especially if you’re not generating high income yet.
• Widely available: Most banks offer some type of free account.
• Often comes with mobile banking: This allows you to quickly check your balance, deposit checks, and transfer money on the go.

A dedicated business bank account clearly distinguishes between your personal and business finances, allowing for efficient tracking and management. By keeping these accounts separate, you can easily keep track of your business expenses, profits, and financial transactions without any mix-up with personal spending.

Where can I get a Free Business Bank or Challenger Account?

Before deciding if a free business bank account is right for you, it’s essential to research and compare different options. Sometimes, a free account is not suitable for your business; this may include loans, overdrafts and larger businesses.

Many banks offer free business bank accounts; you must research to find the best one for your needs. Some popular options include Starling, Tide and Mettle. Compare different offers and see which one works best for your business.

Advantages of Intuit QuickBooks Online

QuickBooks is one of the leading accounting software providers in the UK. Here are the top advantages:

• Easy to use: Even if you’re not a financial expert, QuickBooks can help you track your income and expenses, create invoices, and generate reports.
• Helps track income and expenses: This is essential for any business, but it can benefit freelancers with irregular income.
• Automates tasks: QuickBooks can automate tasks like sending invoices and paying bills, saving you time.
• Generates reports: QuickBooks can generate various reports, such as profit and loss statements and balance sheets. This information can help you understand your business’s financial health and make financial decisions.

With pricing from £10 for a sole trader and £14 for a Limited company, QuickBooks Online is a cost-effective solution for managing your business finances. Sign up with our referral link, and you will receive a 90% discount for 7 months.

Advantages of Integration with QuickBooks

Integrating your free business bank account with QuickBooks can offer numerous advantages for managing your finances. Here are the top advantages:

• Automatic Data Import: QuickBooks can automatically pull your transactions directly from your bank using Open Banking, saving you the time and hassle of manually entering them. This also reduces the risk of errors.
• Real-Time Updates: You’ll have access to up-to-date information on your finances. This allows for better cash flow management and more accurate financial reporting.
• Complete View: You can connect all your business bank accounts and credit cards in one place, giving you a view of your finances.
• Reconciliation Assistance: QuickBooks can help automate some aspects of bank reconciliation, making it less tedious.

How to Integrate Your Bank Account to QuickBooks

Integrating your free business bank account with QuickBooks is a simple process. Most banks connect to QuickBooks using Open Banking, making linking your accounts easier.

QuickBooks provides a complete list of all the banks supported through Open Banking; check to see if yours is listed.

Setting up a New Bank Account in QuickBooks Online

Setting up a new one is easy if you haven’t already linked your bank account to QuickBooks.

Go to the Banking tab and click on “Add Account”. You will then be prompted to search for your bank and be redirected to your bank’s secure login page.

You’ll be prompted to grant QuickBooks permission to access your financial data. This process is secure and follows Open Banking regulations, prioritising user control over their information.

Select the start date to pull the transactions; some banks only allow up to 90 days, while others may allow up to 2 years.

Once the connection is established, QuickBooks will securely import your bank transactions daily. The bank feed will need refreshing every 90 days.

Matching Bank Transactions in QuickBooks

After your bank transactions are imported, you can easily match them to the corresponding entries in QuickBooks. The entries might include sales invoices, bills or receipts.

Go to the Banking tab and click “Match or Assign to” next to each transaction. You can review the matching records and make necessary changes before confirming the match.

Banking Rules in QuickBooks

QuickBooks also allows you to set up banking rules for recurring transactions. This means the system will automatically categorise and assign them to the appropriate accounts once banking rules are set up, saving you time and effort.

Categorise the Bank Transactions

If a bank transaction can’t match a transaction or a bank rule does not apply, you can manually categorise the transaction to the correct chart of accounts code and add the transaction details, including supplier or customer, VAT and a memo for reference.

Bank Reconciliation

A crucial task in financial management is bank reconciliation, which is essential for ensuring the accuracy of your records. Any discrepancies can be identified and corrected by comparing your bank transactions with your bank statement.

The dashboard will show how many transactions require reconciling, as well as the bank balance and the balance in QuickBooks. Once you have checked and matched all transactions, the balances should match. If not, it is essential to go back and check for any errors, duplicates or missing entries.

Integrating a free business bank account and QuickBooks makes this process easier and more accurate.

The Power of Intuit QuickBooks

QuickBooks is a leading accounting software trusted by millions of small businesses worldwide. It offers comprehensive financial management features, including invoicing, expense tracking, and financial reporting.

Integrating your free business bank account with QuickBooks allows you to streamline your financial management process and have all your essential financial information in one place.

Ready to Get Started?

Using a free business bank account and Intuit QuickBooks together can significantly benefit your business finances. From easy integration to efficient bank reconciliation, this combination will make your life as a business owner much more manageable. So why wait? Sign up for a free business bank account and start using QuickBooks today!