Quickbooks Online –
Add vs Match
Quickbooks Online’s most important feature is the ability to download transactions from your bank and credit card accounts. Once the transactions are downloaded, QBO needs to know if it matches what’s already in the system or if it needs to be added. This simple sorting can save tons of data entry time when used correctly, but can also create a whole new level of mess when used wrong!
What’s The Difference?
- When you click add, you’re telling QBO this transaction isn’t already in the system. The vendor and account you set are how you want it recorded in your general ledger. You aren’t trying to tell QBO this expense matches bills you’ve already entered or that this deposit is the combination of multiple invoices getting paid and deposited.
- When you click match, QBO is confirming this item from your bank feed matches something else you’ve already entered.
Why Does It Matter?
Let’s say you’ve invoiced Mrs. Jones for $500 and Mr. Smith for $600. Both paid you with a check. When you go to your bank, you’ll make one deposit for $1,100. If you correctly received payment for both invoices then did a bank deposit, when the $1,100 comes through the bank feed, it will match. If you completed only some of the steps above, the payment won’t match. If you click add at that point, you might have just duplicated income!
Duplicated Income Means Paying More Taxes!!!
Another example. If you wrote a check to a vendor for $327.26 but the bank thought your 6 looked like an 8 so they cashed the check for $327.28 you wouldn’t have a match. If you don’t enter checks into QBO as you write them…or better yet, print the checks right from QBO…you’d never catch this mistake. While a mistake of $.02 may not seem like a big deal, what if the check was for $627.23? A $200 dollar mistake could be a really big deal!
How Should Things Work?
In a perfect world, you’d never use the add function. Every transaction would be entered into QBO as you spent the money and when transactions come through the bank feed, you just match them up. In reality, we need to meet in the middle.
I believe you should never add income if you are creating invoices and/or sales receipts in QBO. Income should always be a match. Expenses, I don’t mind using add for items that were done electronically such as swiping the debit or credit card, but for checks where a human could make an error, I want to match.
Ultimately, you need to develop a system for your business that is consistent. Having a consistent approach can prevent many problems that could become very costly to fix.
Less Taxing Services, LLC
Taxes — Bookkeeping — Accounting | Naples, FL