Want to get started with online banking? You need to first set the account up within Money so it's ready to use the online banking service. But then, after that, you should find it easy pay bills, make transfers, and reconcile accounts, as the discussion that follows explains. Setting up an account for online banking It is very easy to set up an account for online banking. The first task that you would need to do is fill out any paperwork provided by the bank. You would probably need to get and then complete an online banking application form, and then wait while the application is processed and approved. After the application is approved, the bank should send you a letter that provides you with any special instructions, as well as a personal identification number, or PIN, for accessing the account. After you have completed the bank's application process, take the following steps: 1. Display your account list. To display a list of accounts, including the account for which you want to set up online banking, click the Accounts & Bills link, and then select Account List. 2. Select the account you want. Click the account in the Pick An Account To Use window so that Money displays the account register. 3. Indicate that you want to change the description and setup of an account. The account register displays a list of tasks along the left edge of the screen. Click the Change Account Details link. When you select this task, Money displays the Update Details window. 4. Run the Online Setup Wizard. Click the Go To Online Setup button, and Money starts an Online Setup Wizard which steps you through three dialog boxes that you use to set up the account. After you complete the setup with the Online Services Wizard, Money displays the Review Online Services window. Verify that this window correctly describes the online services you have set up for your account. Then click the Done button. Money redisplays the Update Details window. Click the Done button, and Money redisplays the account register for the account. After you have finished the online setup for an account, you can then use it. Paying a bill using online bill payment To pay a bill using the online bill payment service, you record the withdrawal in your check register in about the same way as you would a typical transaction. The only two
differences are that you need to specify the check number as E-Pay, and you need to provide the address and account information for the payment. The E-Pay entry in the Num box tells Money this transaction is an online bill. When you click the Enter button to record an online bill payment transaction, Money displays the Online Payee Details dialog box. Use this dialog box to provide the correct payee name, the payee mailing address for payments, a phone number, and an account number. Your financial institution then uses this information to create a check for the company you are paying and identify the reason for payment. After you provide this information, click the OK button and Money records the online bill payment transaction in your register. NOTE Include a phone number so that the bank can call the company you are paying if a question arises. After you have recorded any online bill payment transactions in the account register, you can send these payments to the bank. To do this, display the account register that holds the online bill payment transactions you want to make. Then click the Send Payments link, which appears in the account register window, to start the transmission of online bill payment transactions. Transferring money between online accounts You can transfer money between online accounts in two ways. First, you can, of course, transfer money in the usual way, such as by filling out an account transfer slip at the bank and then handing it to a teller over the counter. Second, you can transfer money online by recording the transfer in the usual way but then entering Xfer in the Num box. The Xfer code identifies the transfer transaction as an electronic transfer. To transmit instructions to your bank so that it will make the transfer, click the Send Payments link. When Money displays the Connect dialog box, enter your password and click Connect. Money uses your Internet connection to connect to the bank's computer and transmits your online transfer instructions. Downloading an online statement If your bank supports online banking, you can download an online statement. To do this, display the account register for the account, click the Connect To Bank task link, and then choose Connect To Online Services from the submenu. When Money displays the Connect dialog box, enter your password and then click Connect. Once you download the online statement, Money displays a list of the downloaded transactions. What you need to do next is match these transactions to those transactions already recorded in your register. To match a transaction, click it. When you do, Money highlights the transaction in a list of downloaded transactions and attempts to match it to a transaction already listed in the register. If Money can match a downloaded transaction to a transaction you've recorded previously in the register-usually this would be on the basis of identical transaction
amounts-accept the transaction. By accepting the transaction, you essentially record the fact that a transaction you've recorded in your register has cleared the bank and appeared on its bank statement. If a transaction that appears on the list of downloaded transactions has not already been entered in your account register, you can also accept it. In this case, however, what happens is that Money records the transaction downloaded from your bank in your account register. You need to provide any missing data to complete your record keeping. Reconciling an online account You reconcile online accounts in one of two ways: First, you can use the same method as used for your other non-online accounts. In other words, you can reconcile an online account in the same way that you reconcile an account that isn't online. You can also reconcile an online account in a second simpler way. If every few days you download an online statement, you can skip a formal reconciliation. By regularly downloading transactions, you will frequently be making sure that you are not missing transactions. If you do forget to record a transaction, or if a bank-initiated transaction occurs that you were not aware of until the bank statement appears, you will see and then be able to record these transactions. You will also be able to record which transactions have cleared the bank because you will be keeping close track of the transactions that get recorded by the bank, so you won't need to reconcile your account, say, at the end of the month. Essentially, you will be reconciling your account every few days.
CPA Stephen L. Nelson is the author of do it yourself kits for Incorporating in Massachusetts, Massachusetts S corporation, and Massachusetts limited liability company.
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