QuickBooks ACH Payment: How to Process It in QuickBooks Online?

Did you know that the total value of B2B payments processed via ACH in 2023 was $54.2 trillion? QuickBooks ACH Payment processing contributes to better cash flow management. It makes sales and expenses smoother, cutting down on paper checks and wire transfers.

This article will show you how to handle one-time and recurring ACH payments in QuickBooks Online. You'll learn to automate payments and boost your payment management.

Key Takeaways

• QuickBooks charges a modest 1% processing fee for every ACH transaction.
• ACH deposits typically take between 2 and 7 business days to process.
• QuickBooks facilitates both ACH debit (pull) and ACH credit (push) transactions.
• You can automate recurring ACH payments for various transactions like rent and insurance premiums.
• QuickBooks Online requires a linked ACH authorization form to process recurring ACH payments.
• Utilize recurring sales receipts to set up automated customer payments.

What Is an ACH (Automated Clearing House) Payment?

An ACH payment is a way to move money between banks using the Automated Clearing House network. It's a fast way to make financial transactions without using checks. Businesses and people use it for things like paying bills and vendors.

In 2021, over $72.6 trillion was moved through ACH payments. This shows a big growth in using electronic payments. ACH payments are cheaper, costing just $0.29 per transaction. This is much less than what card payments charge, which can be 1.3% to 3.5%.

ACH payments usually take three business days to reach bank accounts. But, you can also get same-day ACH for a higher fee. This makes it easy to meet different business needs. Plus, ACH payments are more likely to go through than credit card payments, which makes customers happier.

The ACH Network moves a lot of money, handling the U.S. GDP twice a year. You can use it for recurring payments to make your finances easier. It works well with software like QuickBooks, making it easier to track your payments.

How to Process ACH Payments in QuickBooks Online

Processing ACH payments in QuickBooks Online makes managing money easier. You can use either sales receipts or invoices, depending on your needs. To process ACH payments in QuickBooks Online, follow these steps:

1. Enable ACH Payments

• Go to Settings (⚙️) > Account and settings.
• Select the Payments tab.
• Click Set up payments (if not already enabled).
• Follow the prompts to connect your bank account and enable ACH payments.

2. Create an Invoice with ACH Payment Option

• Click + New > Invoice.
• Fill in the invoice details.
• Under Payment options, make sure Bank transfer (ACH) is enabled.
• Click Save and send to email the invoice to your customer.

3. Customers Pay via ACH

• The customer receives an email with a Pay Now button.
• They enter their bank account details and authorize the payment.
• QuickBooks processes the ACH transfer.

4. Record and Match the Payment

• ACH payments typically take 2-5 business days to process.
• Once received, QuickBooks will automatically match the payment to the invoice.
• If needed, go to Banking > For review to manually match transactions.

5. Verify the Deposit

• QuickBooks deposits the ACH payment into your linked business bank account.
• You can view the status under Sales > Invoices or Payments.

How to Set Up Recurring ACH Payments in QuickBooks

Setting up recurring ACH payments in QuickBooks Online makes billing easier. It automates payments, saving you time. This lets you focus on important tasks while keeping payments on schedule.

It also makes cash flow more predictable. This means a steady income, unlike one-time payments.

To set up recurring ACH payments in QuickBooks Online, you need to create a recurring invoice and ensure that your customer is set up for ACH payments. Here’s how to do it:

1. Enable ACH Payments

Before setting up recurring ACH payments, make sure ACH payments are enabled for your account:

• Go to Settings (⚙️) > Account and settings.
• Select the Payments tab.
• If ACH payments aren’t enabled, click Set up payments and follow the prompts to connect your bank account.

2. Create a Recurring Invoice

• Click + New > Recurring invoice.
• Select the Customer for whom you want to set up the recurring payment.
• Fill in the invoice details, including the product/service, amount, and frequency of the recurring payments.
• Choose the Start date and the End date or how many times you want the invoice to recur.

3. Choose Payment Method

• Under the Payment options, select Bank transfer (ACH).
• Ensure your customer is set up to pay via ACH. If they haven't previously authorized ACH payments, they will need to complete that process.

4. Set the Frequency

• Choose the frequency for the recurring invoice: Weekly, Monthly, Quarterly, or Custom.
• You can also set up automatic payments if the customer authorizes it.

5. Save and Activate the Recurring Invoice

• Review the details, and then click Save template to activate the recurring invoice.

6. Customer Pays via ACH

• Each time the invoice is generated, your customer will receive an email with a Pay Now button.
• When they click the button, they can enter their bank account details and authorize the ACH payment.

7. Monitor Payments

• QuickBooks will automatically process ACH payments on the due dates.
• You can monitor payment status in Sales > Invoices or Payments.

How to Process Recurring Sales Receipts in QuickBooks

Processing recurring sales receipts in QuickBooks Online makes managing customer payments easier. To process recurring sales receipts in QuickBooks Online, follow these steps:

1. Enable Recurring Sales Receipts

Ensure that you have set up the correct payment methods (like ACH or credit card) in QuickBooks. If you haven’t already, go to Settings (⚙️) > Account and Settings > Payments to set this up.

2. Create a Recurring Sales Receipt

• Go to + New > Recurring Sales Receipt.
• Select the Customer for whom you want to set up the recurring sales receipt.
• Fill in the sales receipt details, including:
  
  • Payment Method: Choose the payment method (e.g., ACH, Credit Card).
  • Amount: Specify the amount for each recurring receipt.
  • Frequency: Select the frequency (e.g., weekly, monthly) of the payments.
  • Start Date: Set when the first sales receipt should be generated.
  • End Date: Optionally set an end date or the number of occurrences.

3. Set the Payment Method

For ACH or other electronic payments:

• In the Payment Method field, select Bank Transfer (ACH) or the method you prefer.
• Your customer will need to be set up for ACH payments if this is their chosen method.

4. Review & Save

• After filling out all the necessary details, click Save Template to activate the recurring sales receipt.

5. Customer Pays Automatically

Each time the sales receipt is generated based on the frequency you set:

• QuickBooks will automatically charge the customer’s payment method.
• You will see the payments recorded in your account, and the transaction will automatically be matched with your bank deposits.

6. Monitor Recurring Sales Receipts

• To view or edit any recurring sales receipts, go to Gear Icon (⚙️) > Recurring Transactions.
• You can make adjustments to the frequency, amounts, or payment methods.

Types of ACH Payments

There are two main types of ACH payments: ACH debit and ACH credit, and each has its own role.

ACH Debit (Pull)

ACH debit, or "pull" transactions, take money from a customer's account. It's great for automatic bill payments. This way, businesses can get paid easily and safely.

It's good for both sides, making it easier to manage money. ACH debit costs less than $1 per transaction, which is cheaper than checks. It's perfect for regular payments.

ACH Credit (Push)

On the other hand, ACH credit, or "push" transactions, send money from a business to someone else. It's used for direct deposits, paying vendors, and sending out paychecks. This method helps companies send money quickly and efficiently.

It's also cheaper than using credit cards. The ACH network has improved a lot. Now, these transactions take only 1 to 2 business days, making money flow smoother.

How Long Does it Take to Process ACH Payments in QuickBooks Online?

ACH payments in QuickBooks Online usually take two to seven business days. This time can vary based on if it's a one-time or recurring payment. For recurring payments, the time often gets shorter after the first payment goes through.

Most businesses see ACH payments processed in two to four business days. Payments from new customers or larger amounts might take longer due to extra security checks. For quicker transactions, you can opt for same-day ACH for a fee, getting funds the next business day.

QuickBooks charges a 1% processing fee per ACH transaction, up to $10 plus 25 cents. These fees are taken right after the funds reach your account. Other fees might be taken out on the fifth business day of the next month, with emails about extra fees.

Knowing the difference between ACH debit and credit can help you understand your processing time better. QuickBooks Online also supports split ACH payments, making it easier to manage your finances.

Optimize Your ACH Payments with DepositFix and QuickBooks Integration

Streamlining your ACH payment processes contributes to good financial management. When you link DepositFix with QuickBooks, you can automate and manage transactions easily. This makes your operations more efficient.

The QuickBooks integration lets you sync invoices from DepositFix in real-time. This keeps your financial records up-to-date and avoids errors. It also makes month-end reports easier to handle.

This integration also syncs customer details and payment histories. It helps prevent mistakes and keeps your financial records accurate. It also supports tax compliance, as it aligns transactions with QuickBooks tax codes.

DepositFix makes managing subscription payments in QuickBooks easy. It helps manage recurring invoices and payments. You can set custom payment terms, like "Net 30" or "Due on Receipt."

Some big benefits include:

• Multi-currency support for managing operations worldwide.
• Detailed sync logs and error reports for quick issue solving.
• Support for partial payments and split transactions for complex payment needs.
• Mobile-friendly integration for easy transaction tracking on any device.
• Real-time analytics for better financial oversight and decision-making.

Using DepositFix and QuickBooks integration can greatly improve your ACH payment management. This powerful combo lets you focus on important tasks while ensuring smooth transaction management. It also boosts your financial performance. Contact us for a demo and see how you can optimize your ACH payment processes.

Conclusion

Processing QuickBooks ACH payments boosts your business's efficiency and cash flow. QuickBooks Online makes it easy to handle one-time and recurring payments. This simplifies your financial tasks.

Automation ensures payments are on time and accurate. It also cuts down on errors. Poor data entry can cause financial record discrepancies, a common problem.

ACH payments also bring many benefits. They cost less than credit cards, saving you money. QuickBooks Payments supports many payment methods, pleasing more customers.

Real-time tracking helps you make better financial choices. Customizable payment pages also boost your brand. These features make managing money easier.

Adding QuickBooks ACH payments to your business improves payment handling. It strengthens your financial health. QuickBooks Online offers security, mobile access, and great customer support for easy financial management.

FAQs