QuickBooks bank feeds are a powerful tool provided on the desktop and online platforms. If used properly, bank feeds can greatly reduce the amount of manual data entry that is required. This means more time working on your business and less time working on your books. As with most things in life there is always a caveat. We will explore the pros and cons to using a bank feed.
Automation is king when it comes to efficiency. The less time you, a bookkeeper, or CPA spends working your books the better. Because bank feeds can be automated it also reduces the turnaround time. That means you can have valuable information more quickly.
The list of pros may seem short, but there are major implications associated with increased efficiency and reduced turnaround times. This may mean that you save money or headaches. These benefits are very personalized and will mean different things to different people.
While automation is beneficial it can also be detrimental. For instance, if your automation is setup incorrectly then you will have garbage in and garbage out. If the bank feed automatically codes all office supplies to income then your books will not be right from the beginning. Similarly, if this work is taking place in the background because of automatic bank feed rules, then the issue may not surface until the end of the year.
A second danger is increased cost. If the information is incorrect someone will need to fix it. That means you, your bookkeeper, or a CPA is doing more work.
Bank feeds are a two-edged sword. They can cut cost and increase efficiency, but can also increase cost and reduce efficiency. Why and what is the answer?
Setup is the key when it comes to bank feeds. There is going to be a cost associated with setup. That may come in the form of your time or a bill from a professional. The benefits of proper setup far exceed the cost. It is often more costly to correct than to setup. An ounce of prevention is worth a pound of cure.
To take this idea one step further please consider the following. A professional may seem expensive, but a lay person will cost even more. This concept further strengthens the benefit of professional help and the importance of a proper setup.
Robert F Murray & Co, CPAs can provide you with professional advice and setups. We have the experience, knowledge, and tools to make sure your bank feeds work to your benefit. We can also help with fixing systems already in place. If your bank feed is causing more headaches than relief, we can help, just get in touch with us.