Over the past decade, our society has seen more and more of our everyday tasks being automated.  We have robots that vacuums our floors, litter boxes that are self-cleaning and even robotic financial advisors that will (hopefully!!) make sure we are invested in the right assets according to our associated risk tolerance.  During that time Quickbooks has jumped on the band wagon and added a feature to let you connect your bank accounts with your Quickbooks software.

Linking your bank accounts with your accounting software does offer a time savings for many small businesses.  The tedious task of logging all expenses and revenues is virtually eliminated, leaving more time for small business owners to focus on more profitable aspects of their business.  The most recent commercials depict celebrities relaxing in various ways as their accounting is automatically taken care of for them.  It is important to remember that this functionality is only beneficial for very small businesses.  In general, transactions become more complicated as your business grows (ie. Customer Deposits/Retainers or special invoicing needs). I have worked with several small businesses over the years that have let this process run wild with their accounting system, even as their business has started to outgrow it.   Just like the process of driving a car, every situation is unique and does not require just one automated solution.

The linking functionality is great for small businesses with fewer than approximately 50 transactions.  These small, usually home-based businesses, have the luxury of only a few, easily allocated entries.  As your business grows, a qualified professional is needed to make sure you have the most accurate numbers possible in your accounting software.  The information you extract from this system is vital for any future decisions you and your leadership team make, so make sure it represents the current state of your business.