Adding a Bank Account to QuickBooks Desktop
To add a bank account to QuickBooks Desktop, go to the Company menu, select Setup, then Chart of Accounts. Click the Account button at the bottom left and choose New. Select Bank as the account type, fill in the account name and number, and click Save and Close. The account now appears in your chart of accounts and is ready to receive transactions.
This process creates the account structure in QuickBooks but does not connect it to your actual bank for automatic downloads. If you want QuickBooks to pull transactions directly from your bank, you will need to set up online banking separately after the account exists in your chart of accounts.
Key Takeaways
- Creating a bank account in QuickBooks Desktop requires going through Company > Setup > Chart of Accounts and selecting Bank as the account type.
- You must enter the account name and account number when setting up the account, though the account number is optional if you prefer not to store it.
- Online banking setup is a separate step from account creation and requires your bank's login credentials and QuickBooks' connection to your financial institution.
- Not all banks support direct connection to QuickBooks Desktop, so you may need to download transactions manually or use a CSV file instead.
The Difference Between Creating an Account and Connecting Online
When you create a bank account in QuickBooks Desktop through the Chart of Accounts, you are building a container for transactions. This account will show up in your lists and reports, but it is not yet linked to your actual bank.
Online banking connection is what allows QuickBooks to pull your real transactions from your bank's servers. This requires a second setup step and depends on whether your bank participates in QuickBooks' network. Many banks do, but some regional or smaller institutions do not.
If your bank does not support direct connection, you can still use the account by entering transactions manually or by downloading a CSV file from your bank and importing it into QuickBooks.
Setting Up Online Banking After Creating the Account
Once your bank account exists in your chart of accounts, you can enable online banking. Go to Banking menu and select Online Banking Center. Click Set Up Account for Online Services. QuickBooks will ask you to select your financial institution from a list or search for it by name.
Enter your online banking username and password when prompted. QuickBooks will verify the connection with your bank. This process typically takes a few minutes, though some banks require you to approve the connection through a separate email or text message.
After approval, QuickBooks will begin downloading your transactions. The first download may include several weeks or months of history, depending on your bank's settings. Subsequent downloads happen automatically on a schedule you can adjust in the Online Banking Center.
What to Do If Your Bank Is Not Listed
If you search for your bank and it does not appear in QuickBooks' list, your bank does not currently support direct connection to QuickBooks Desktop. This does not mean you cannot use the account—it means you will need an alternative method to get transactions into QuickBooks.
The most common workaround is to download transactions from your bank's website as a CSV or OFX file, then import them into QuickBooks. Go to File > Utilities > Import > IIF Files (or CSV, depending on your file type) and select the downloaded file. QuickBooks will match the transactions to your account and ask you to review them before posting.
Some users also use third-party tools like Plaid or Yodlee to bridge the gap between their bank and QuickBooks, though these services typically charge a monthly fee and require their own setup.
Matching Downloaded Transactions to Your Records
When QuickBooks downloads transactions from your bank, it displays them in the Online Banking Center with a status of "Unmatched." Your job is to match each downloaded transaction to an existing entry in QuickBooks or mark it as a new transaction to be added.
For transactions you have already entered manually in QuickBooks, click the transaction in the Online Banking Center and QuickBooks will search for matches. If it finds one, you can click Match to confirm. If no match appears, you can manually select the corresponding transaction from your register.
Unmatched transactions that you have not yet entered go into a holding area. Review these carefully—they may be fees, transfers, or deposits you forgot to record. Once you have matched or reviewed all transactions, click Update to post them to your account.
Troubleshooting Connection Problems
If QuickBooks cannot connect to your bank, the most common cause is an incorrect username or password. Log into your bank's website directly to confirm your credentials work, then re-enter them in QuickBooks. Some banks require you to set up a separate online banking username that differs from your login for their mobile app.
If your password is correct but the connection still fails, your bank may have changed its security settings or disabled third-party connections temporarily. Contact your bank's customer service and ask whether they support QuickBooks Desktop connections. If they do, ask them to confirm that third-party access is enabled on your account.
Another common issue is using an outdated version of QuickBooks Desktop. Banks periodically update their security protocols, and older versions of QuickBooks may not support the new standards. Check Help > About QuickBooks Desktop to see your version number, and visit Intuit's website to see whether an update is available.
Managing Multiple Bank Accounts
If you have more than one bank account, create each one separately in your chart of accounts using the same process: Company > Setup > Chart of Accounts, then Account > New > Bank. Give each account a distinct name so you can easily tell them apart in your registers and reports.
Once all accounts are created, you can set up online banking for each one individually. Go to the Online Banking Center and click Set Up Account for Online Services for each account. QuickBooks will remember your bank's login information, so you typically only need to enter it once per financial institution, even if you have multiple accounts at the same bank.
In your Banking menu, you can switch between accounts using the dropdown at the top of the register. This lets you see transactions for one account at a time or reconcile each account separately against your bank statements.
Frequently Asked Questions
Do I need to enter my account number when creating a bank account in QuickBooks?
No, the account number is optional. You can leave it blank if you prefer not to store that information in QuickBooks. The account name is what matters for organizing your records and running reports.
Can I change the account name or number after I create it?
Yes. Go to Chart of Accounts, right-click the account, and select Edit Account. You can change the name, number, or description at any time. If you have already downloaded transactions, changing the account number will not affect them.
What happens if I delete a bank account that has transactions in it?
QuickBooks will not let you delete an account that contains transactions. You must first move or delete all transactions associated with that account, or mark the account as inactive instead. Inactive accounts remain in your records but do not appear in most lists or dropdown menus.
How often does QuickBooks download transactions from my bank?
The download frequency depends on your settings in the Online Banking Center. Most users set it to daily, but you can change it to weekly or manual-only. You can also download transactions on demand by opening the Online Banking Center and clicking Update.
Can I use QuickBooks Desktop to pay bills directly from my bank account?
Yes, if your bank supports bill pay through QuickBooks. This is a separate feature from transaction downloads. Go to Banking > Online Banking Center and look for bill pay options. Not all banks offer this service, so check with your financial institution first.