In Episode 29 of QuickBooks Mastery for Small Business Success, Lee Davis and Erica Northrup discuss three features that can improve efficiency for business owners when used correctly: QuickBooks Payments, the Bank Feed, and Time Tracking.
Each of these tools is designed to simplify everyday business operations. However, like any feature in QuickBooks, success depends on understanding how they work and using them properly.
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QuickBooks Payments: Making It Easier to Get Paid
One of the biggest advantages of QuickBooks Payments is convenience.
Instead of relying on paper invoices and mailed checks, businesses can email invoices that include a secure payment option. Customers can simply click a button to pay online, helping businesses receive payments faster and improve cash flow.
While many companies use QuickBooks Payments, others may prefer contractor payment systems or ACH transfers depending on their business model and customer preferences.
The key is choosing the payment solution that best fits both your business and your clients.
Setting Up QuickBooks Payments
Before accepting payments through QuickBooks, there are several setup steps to complete.
These include:
- Verifying your bank account
- Completing required business verification documents
- Meeting QuickBooks’ payment processing requirements
Taking the time to complete the setup correctly helps ensure payments are processed smoothly.
Protecting Customer Payment Information
Erica and Lee also stress the importance of payment security.
Storing customer credit card information can expose a business to unnecessary risk and liability.
Using secure payment processing tools helps protect both your business and your customers while reducing the responsibility of handling sensitive financial information yourself.
Is QuickBooks Payments Right for Every Business?
Not necessarily.
Before enabling QuickBooks Payments, consider several questions:
- How do your customers prefer to pay?
- Will online payments improve customer convenience?
- Are you comfortable with the payment processing fees?
For businesses that regularly process large-dollar transactions, those fees can add up quickly.
Evaluating your customer base and pricing structure can help determine whether QuickBooks Payments is the right solution.
Sending Invoices Is Simple
Once an invoice is created in QuickBooks, it can be emailed directly to the customer.
When QuickBooks Payments is enabled, the invoice includes a built-in payment option, allowing customers to pay immediately.
Without integrated payments, businesses often rely on mailed checks or other manual payment methods, which can slow down collections.
Avoid a Common Payment Mistake
One important reminder from Erica and Lee is to use the Receive Payment function correctly.
If a customer has already paid an invoice, record the payment using Receive Payment rather than creating a new charge.
Failing to do so could accidentally charge the customer a second time, creating unnecessary confusion and frustration.
Getting Started with the Bank Feed
The QuickBooks Bank Feed is another feature that can save time by importing transactions directly from your financial institutions.
However, Lee recommends waiting until you’ve been using QuickBooks for several months before activating the Bank Feed.
Why?
Learning to enter transactions manually first helps you understand:
- How accounts are categorized
- Which forms should be used
- How transactions flow through QuickBooks
Building this foundation makes it much easier to recognize and correct mistakes later.
Match Instead of Add
Once the Bank Feed is active, one best practice stands out:
Match transactions whenever possible instead of simply adding them.
Matching connects downloaded bank activity to transactions you’ve already entered, helping prevent duplicate entries and improving the accuracy of your financial records.
Accounts That Can Connect Through the Bank Feed
The Bank Feed can connect to several types of financial accounts, including:
- Checking accounts
- Credit cards
- Loans
Connecting these accounts allows QuickBooks to import transactions automatically, reducing manual data entry.
Choosing the Right Bank
Not every financial institution integrates with QuickBooks in the same way.
Before choosing a bank, consider:
- Whether it has a strong QuickBooks integration
- Whether connection fees apply
- How reliably transactions synchronize
A well-supported financial institution can make bookkeeping much smoother.
What to Do If the Bank Feed Stops Working
Occasionally, bank connections experience interruptions.
If that happens, Erica and Lee recommend several troubleshooting steps:
- Use Google Chrome, as QuickBooks performs best in that browser.
- Click the Update button to refresh the connection.
- Contact QuickBooks Support to determine whether there is an active connection issue between QuickBooks and your financial institution.
Many connection issues are temporary and can be resolved with a simple update.
Why Time Tracking Matters
The final topic in this episode is Time Tracking.
For service-based businesses, tracking employee or owner time provides valuable information for billing, payroll, and profitability.
Within QuickBooks, users can record:
- Employee or contractor
- Customer
- Service provided
- Hours worked
- Date
- Notes
Maintaining complete time records helps improve invoicing accuracy and provides better insight into labor costs.
Track Time Every Day
Lee recommends entering time daily rather than trying to remember hours at the end of the week.
Daily time tracking helps:
- Improve billing accuracy
- Reduce forgotten hours
- Keep payroll records organized
- Provide more reliable job costing information
Consistent habits make reporting more accurate and reduce administrative work later.
Final Thoughts
QuickBooks offers powerful tools to help businesses collect payments, automate transaction imports, and track employee time. But these features are most effective when they’re implemented thoughtfully and used consistently.
By understanding how QuickBooks Payments, the Bank Feed, and Time Tracking work together, business owners can streamline operations, improve cash flow, and maintain more accurate financial records.
As Lee Davis and Erica Northrup emphasize throughout QuickBooks Mastery for Small Business Success, technology is only as effective as the processes behind it. Taking the time to learn these tools today can save countless hours—and costly mistakes—in the future.
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