How do I record overdraft protection? Money missing in bank account so the overdraft gets charged to our CC. I have $ received in bank and $ spent on CC? No interest. Thx

Hi there, 

Running your business with QuickBooks Online means you'll save tons of time and effort with your business bookkeeping. Like most small businesses, there's a wide variety of transactions that you'll need to enter into your accounting program, such as overdraft occurrences. I'd be happy to explain how you can reflect this in your books. 

Since there's no interest involved in the transaction, it's much simpler to reflect in QBO. Interest charges can go hand-in-hand with bank fees, which need a special account in order to track them.

Since your real-life bank account shows the money being taken from your credit card and placed in the bank account, you can use the Transfer tool to demonstrate this in QuickBooks Online. For more information about how this works, check out this helpful article: Transfer funds between accounts. 

As explained in the article, "if both accounts appear in your Chart of Accounts (they usually do), you must enter the transfer as one transaction that affects both accounts, rather than entering a cheque in one account and a deposit in the other."

I hope this helps get you back on track.

Take care.

Thank you for your response, that was helpful!

How do i record overdraft protection to reconcile with the bank statement? Thanks

Hello ReJoyz2020,

Thanks for joining us on this thread! I know recording these kinds of transactions is a vital part of balancing your books and I want to make sure that you have the steps to meet the needs of your situation in QuickBooks Online. I'll point you in the right direction for this.

My colleague included some steps above that may help you with the overdraft like they did the previous user, so I recommend starting with those if you haven't already. When you've got the transaction recorded, you should be able to reconcile as needed. This article can help: Reconcile an account in QuickBooks Online

If your situation is a bit different, having details about that is helpful. You're welcome to share them here so that QuickBooks Team members like myself and other Community users have the opportunity to get you back on track.

You may also benefit from working with an accountant on this. An accountant is trained to know how to account for these types of transactions in businesses' books, and if your accountant knows QuickBooks Online, that's even better. Using the My Accountant tab in the program, you can connect your accountant to your books as a user by inviting them via email. That tab also has a Find a pro to help button, which brings you to our database of QuickBooks-certified accountants near you.

I hope you have a great week!

Thanks for the reply. It helped me understand it better.

So I tried all those on top conversation and the one you suggested.

When I linked my bank account on QBO, it only reflect transactions from 3months ago (Aug-Oct) and not the whole year. My records are behind and that overdraft happened in June. So where exactly should an overdraft protection fall into when it is not an income nor an expense. That's the only amount that unbalance/make the difference. 

Hi ReJoyz2020,

Having your overdraft protection go to the right account is imperative to keeping accurate books. I can help point you in the right direction.

QuickBooks Online makes loading your bank feeds easy by providing multiple ways to do so. Linking your bank account to QuickBooks Online only allows for the last few months to be uploaded, however you can always upload more by manually uploading them. In order to manually upload your bank feeds you'll first need to log into your bank and download the time frame you're looking for.. Once they are downloaded you can follow the steps in this article to manually upload them to your account. Once uploaded you'll need to check to make sure you look for any duplicate transactions and uncheck them.

In order to make sure you pick the right account as my colleague suggested I recommend reaching out to your accountant for help as they are trained on how to add these types of transactions. If you don't have an accountant you can go to My Accountant>Find a pro to help to find one in your area. 

Have a great day!

Thank you so much. It helped a lot.