How To Use QuickBooks Online: A Practical Getting-Started Guide
New to QuickBooks Online? Learn how to set up your company file, connect your bank, manage invoices, track expenses, and reconcile accounts efficiently.
If you are transitioning to cloud-based accounting, getting comfortable with QuickBooks Online (QBO) is the fastest way to streamline your daily bookkeeping. We have put together a practical walkthrough to help you navigate the essentials, from your initial setup to your first bank reconciliation.
Setting Up Your Company File
Before you can manage your daily finances, you need to configure your company settings. After logging into your QBO account, click the Gear icon in the upper right corner and select Account and Settings. Here, you will input your business name, upload a logo for your invoices, and configure your fiscal year.
Next, navigate to the Chart of Accounts to ensure your standard accounts—like checking, savings, and credit cards—are set up correctly. You can easily add new accounts by clicking the green New button in the top right corner of the Chart of Accounts screen.
Connecting Your Bank and Credit Cards
One of the biggest time-savers in QBO is automated bank feeds. Instead of manually entering every transaction, you can link your financial accounts directly to the software.
- Go to the Banking or Transactions tab on the left navigation menu.
- Click Link account.
- Search for your bank, log in using your online banking credentials, and follow the prompts to authorize the connection.
Once connected, QBO will automatically download your recent transactions. You can review these in the For Review tab, where you will assign categories to each transaction and click Match or Add to record them in your books.
Managing Invoices and Sales
To bill your clients, click the + New button and select Invoice. You can choose a customer from your list, select a product or service, and enter the quantity. If you have recurring billing, you can set an invoice to repeat automatically by clicking Make recurring under the payment options.
When a customer pays you, return to the + New menu and select Receive Payment. Apply the payment to the open invoice to keep your Accounts Receivable accurate and up to date.
Tracking Expenses
Recording business expenses is just as straightforward. Click + New and select Expense or Bill depending on whether you are paying immediately or planning to pay later. Choose the correct payee, select the payment account (like your business checking), and categorize the expense to the appropriate category, such as Office Supplies or Utilities.
Reconciling Your Accounts
At the end of every month, you need to reconcile your accounts to ensure your QBO records match your actual bank statements. Go to the Gear icon, select Reconcile, and choose the account you want to reconcile. Enter your statement’s ending balance and ending date, then carefully check off each transaction that appears on both your bank statement and your QBO screen until the difference reaches zero.
If you run into discrepancies or need help troubleshooting specific errors as you navigate the platform, you can find more detailed QuickBooks Online troubleshooting guides to help you resolve common syncing and reporting roadblocks.