Does QuickBooks Online Payments Provide Integrated Bookkeeping?

QuickBooks Payments has a built-in integration with QuickBooks Online’s accounting software. This means you can leverage both payment processing and bookkeeping features of the QuickBooks platform. From banking and cash management to financial reporting, you can access all of QuickBooks Online’s accounting tools to help you manage your books.

In this article, we’ll discuss the key features of QuickBooks Online and how they can help your business, all while QuickBooks Payments is taking care of your payment processing workflows.

Banking

QuickBooks allows you to connect your bank accounts and credit cards directly to the platform. Once connected, QuickBooks automatically imports transactions, including deposits, withdrawals, and other financial activities, eliminating the need for manual data entry. This automated import feature not only saves time but also significantly reduces the risk of errors in recording financial transactions.

The system automatically categorizes transactions based on predefined or customizable expense and income categories, ensuring that transactions are accurately recorded in the appropriate accounts. You can then match the transactions imported into QuickBooks with their corresponding entries in the bank statements. This reconciliation process helps identify and rectify any discrepancies between the recorded transactions in your QuickBooks records and the actual transactions in the bank statement.

Learn more about the banking features of QuickBooks Online.

Invoicing

With QuickBooks Online, you can easily create professional and customizable invoices and include important details such as the customer’s name, products or services provided, quantities, rates, and due dates. It also provides templates, allowing you to create a new invoice from scratch easily. Also, you can create recurring invoices if needed. 

Invoicing form in QuickBooks Online

With the QuickBooks Payments integration, customers can make secure and convenient online payments directly from the invoice, using various payment methods such as credit cards or bank transfers. QuickBooks Online Payments allows you to add payment links or a Pay now button to your invoice to make it easy for customers to pay you. You can also accept payments on the go using the QuickBooks GoPayment mobile app.

Vendor Bill Management and Tracking

QuickBooks Online allows you to easily record new bills from suppliers and vendors, track them until they are paid, and pay them directly from within QuickBooks. Available in QuickBooks Online Plus and Advanced, you can record bills and pay them directly without leaving QuickBooks using the new QuickBooks Bill Pay feature. It’s a replacement for Melio and is built directly into QuickBooks to streamline your accounts payable workflows. 

For those with complex accounts payable processes, you can create customized approval workflows so that only the right people can approve payments. This means you can designate specific team members who are responsible for approving bills.

Inventory Management

For businesses involved in selling products, inventory management in QuickBooks Plus and Advanced is crucial. QuickBooks Online Payments seamlessly integrates with QuickBooks Online’s inventory tracking feature. When a sale is made through the payment platform, the corresponding inventory adjustments are automatically recorded in QuickBooks Online. 

This integration ensures that businesses maintain accurate inventory levels, preventing stockouts or overstock situations. You can also set up reorder points, track stock movements, and receive low inventory alerts, all within the QuickBooks ecosystem.

Project Accounting

For businesses managing multiple, QuickBooks Online Payments extends its integration capabilities to project accounting in QuickBooks Online. You can easily create a new project and track it until it’s completed. 

Setting up a new project in QuickBooks Online

This feature is particularly beneficial for businesses in industries such as construction, consulting, or creative services. You can easily generate project-specific financial reports, helping you evaluate the profitability of each project. If you need more detailed profitability tracking, then you should consider upgrading to QuickBooks Online Advanced, which allows you to generate estimated vs actual project cost reports. 

Sales Tax Management

QuickBooks Online Payments extends its capabilities to streamline sales tax management for businesses. The integration ensures that sales tax calculations are automated based on transaction details. This feature is particularly beneficial for businesses operating in regions with varying tax rates.

You can also set up and customize sales tax codes and apply them to transactions, and QuickBooks Online will automatically calculate the accurate sales tax amount. The system also facilitates the generation of sales tax reports, simplifying the process of filing sales tax returns.

Reporting Capabilities

QuickBooks Online offers a range of customizable reports that provide users with deep insights into their financial performance. You can generate detailed financial statements, profit and loss reports, cash flow statements, and other useful management reports with just a few clicks. The ability to access up-to-date financial information helps businesses to make informed decisions, identify trends, and plan for the future confidently.

Wrap Up

QuickBooks Payments can be more than just a payment processing tool, especially when integrated with QuickBooks Online. While QuickBooks Payments takes care of payment processing workflows, QuickBooks Online is doing the rest of your bookkeeping.