How to Create an Unlinked Bank Account in QuickBooks Online

Managing finances accurately is essential for any business. QuickBooks Online makes it relatively easy to track income and expenses. However, there are times when you need to create a bank account that is unlinked from your bank. This means the account won't automatically download transactions. Instead, you will manually enter transactions as needed. Here’s how to create an unlinked bank account in QuickBooks Online.

Step 1: Access the Chart of Accounts

The Chart of Accounts is a list of all accounts your business uses to record transactions. Here’s how to get there:

1. Log in to your QuickBooks Online account.
2. Click on the Settings icon, which looks like a gear, at the top right corner of the screen.
3. Under the section labeled Your Company, select Chart of Accounts.

Step 2: Create a New Bank Account

Once you’re in the Chart of Accounts, you can create a new account:

1. Click the green New button to add a new account.
2. In the Account Type dropdown, select Bank.
3. In the Detail Type dropdown, select an option that fits your account type (for example, Checking or Savings).
4. Fill in the Account Name field (e.g., "Main Business Checking").
5. If you want, you can add a description and bank account number for your records.
6. Finally, click Save and Close to finish adding the account.

That's it! You have successfully created a bank account in QuickBooks Online that is not linked to your bank for automatic transaction downloads.

Why Create an Unlinked Bank Account?

There are several reasons you might want an unlinked bank account:

• Manual Transaction Entry: Some businesses prefer to manually enter transactions for better control and accuracy.
• Bank Compatibility: Not all banks connect with QuickBooks online for automatic downloads, so this option gives you flexibility.
• Use for Personal or Non-Business Account: You might want to track transactions for personal use or an account not related to your main business finances.

By creating an unlinked bank account, you retain full control over your records and can enter transactions based on your schedule.

Things to Keep in Mind

While having an unlinked account can be beneficial, there are some things to consider:

• Time-Consuming: Entering transactions manually can take more time than using automated downloads.
• Potential for Errors: Manual entry may lead to mistakes, so it's vital to double-check entries.

Despite these factors, for some business owners, the benefits outweigh the drawbacks. Make sure your accounting is accurate by regularly reviewing your entries.

Conclusion

Creating an unlinked bank account in QuickBooks Online is straightforward. Just remember to access the Chart of Accounts, add your account with the right settings, and you’re good to go. This option suits various situations where automatic downloads aren’t practical or needed. If you have questions, checking QuickBooks’ support articles can provide additional help.

For more detailed guidance, you can refer to QuickBooks' official support article on adding and connecting bank accounts: QuickBooks Support.