How to Record Bank Fees in Quickbooks
Have you been hit with a bank fee? It’s no secret that banks charge a heft amount for overdrafts, late payments on loans, and other fees. In fact, it’s not uncommon for customers to incur $39 for each of these fees. When this occurs, however, you should record the fee in your Quickbooks account. The fee is technically an expense, so you should record it appropriately in your Quickbooks account. Failure to do so may result in the fee throwing off your business’s books. So, what’s the right way to record bank fees in Quickbooks?
To begin, log in to your Quickbooks account and click the “File” menu at the top of the page, followed by “Open or Restore Company.” As you may already know, this will allow you to open your company file. You’ll need to navigate to the location of your Quickbooks company file. Whether it’s located on the cloud or locally on your computer, find and select your company file, after which you should click “Open.”
Next, you should see your Quickbooks company file opened. Go to the “Banking” menu, click it, and choose “Use Register” from the main menu. You can then scroll to the bottom of the check register, where you can click an empty area on a blank transaction. Next, click any area of the date field to enter your own date. It’s important that you choose the date on which you incurred the bank fee. If you don’t remember when you were hit with this fee, go back over your bank records. This typically won’t have an effect on the overall outcome of the fee, but it’s still a good idea to record bank fees using their appropriate date.
Under the “Payment” column, enter the total amount for the fee that you were charged by the bank. There are a few more steps in the process, however. Under the “Account” drop-down menu, you’ll need to choose “Bank Service Charges.” This tells Quickbooks that the charge came from a bank and not a vendor or customer. When you are finished, you can then click “Record” to finish the process. Congratulations, you’ve just recorded a bank fee in Quickbooks! Hopefully, it rarely or never happens, but when you incur any additional bank fees in the future, follow these steps to record them in Quickbooks.
Did this tutorial work for you? Let us know in the comments section below!