How to Record Bank Fees in QuickBooks Online & Desktop

To record bank fees in QuickBooks Online, categorize the fee to a Bank Charges expense account when it arrives in the bank feed, or create an Expense from the +New menu using the same category. In QuickBooks Desktop, enter the amount in the Service Charge field on the Begin Reconciliation window, or write it as a check or expense coded to Bank Service Charges.

Bank fees show up on every statement: monthly maintenance charges, wire fees, returned-check fees, and card processing costs. The fastest way to capture all of them is to convert the statement PDF to a .qbo file with the tool above, so every fee imports as a dated transaction you simply categorize as Bank Charges. Here is how to record each type the right way, in both QuickBooks Online and Desktop.

How do I record bank fees in QuickBooks Online?

If the fee comes through the bank feed, open Transactions, Bank transactions, find it in the For Review tab, set the Category to Bank Charges, and select Add. If it is not in the feed, select +New, then Expense, choose the bank account it came from, set the Category to Bank Charges, enter the amount and date, and Save.

How do I record bank fees in QuickBooks Desktop?

The cleanest way is during reconciliation. Go to Banking, Reconcile, and in the Begin Reconciliation window enter the amount in the Service Charge field with its date and the Bank Service Charges account. QuickBooks posts it automatically. Outside reconciliation, use Banking, Write Checks or enter an expense coded to Bank Service Charges.

What account do I use for bank fees in QuickBooks?

Use a Bank Charges expense account. In QuickBooks Online the account type is Expenses and the detail type is Bank Charges. Most company files already include one. If yours does not, open Settings, Chart of accounts, New, choose Expenses, then Bank Charges, and name it Bank Charges or Bank Service Charges. If fees have been landing in an account filed under the wrong category, edit the account type rather than recategorizing each fee by hand.

How do I record bank charges in QuickBooks?

Bank charges are recorded the same way as any bank fee: as an expense coded to your Bank Charges account. Categorize the charge from the bank feed, create an Expense for it, or enter it in the reconciliation Service Charge field in Desktop. The point is one consistent expense account so every charge totals together in your reports.

How do I record a credit card processing fee in QuickBooks?

Record processing fees as an expense, not a reduction of income. When a deposit arrives net of the fee, open the Bank Deposit, scroll to Add funds to this deposit, add a line coded to Merchant Fees or Bank Charges, and enter the fee as a negative amount. The deposit then matches the net amount the processor actually sent.

How do I record a bank fee taken out of a customer payment?

Record the gross payment, then subtract the fee on the deposit. On the Bank Deposit screen, add the customer payment, scroll to Add funds to this deposit, and add a line coded to Bank Charges with the fee as a negative number. The net deposit now equals what hit your account, and the fee posts as an expense.

How do I record a monthly account maintenance fee?

A monthly maintenance fee is a straightforward bank expense. Let it come in through the bank feed and categorize it to Bank Charges, or create an Expense from +New coded to Bank Charges for the amount and date on the statement. In Desktop, enter it in the reconciliation Service Charge field so it posts with the period.

How do I record a wire transfer fee in QuickBooks?

Record a wire fee as a separate expense coded to Bank Charges, even when it is bundled with the wire itself. Split the transaction so the wire amount goes to its proper account and the fee goes to Bank Charges. Keeping the fee on its own line makes total bank costs easy to see at tax time.

How do I record a returned check or NSF fee?

Record the NSF fee as a Bank Charges expense, and separately reverse the bounced payment so the customer balance is correct again. Enter the fee from the bank feed or as an Expense coded to Bank Charges. If your bank passes the fee on to the customer, you can invoice them for it as a reimbursable charge.

Are bank fees tax deductible?

Bank fees on a business account are generally deductible business expenses, which is exactly why recording them to a Bank Charges account matters. Coding every fee consistently means the deduction is captured and easy to report. Fees on a personal account are not deductible, so keep business and personal banking separate. Confirm specifics with your tax advisor.

How do I record bank fees during reconciliation?

In QuickBooks Desktop, the Begin Reconciliation window has a Service Charge field. Enter the total fee, its date, and the Bank Service Charges account, and QuickBooks records it for you. QuickBooks Online has no fee field in Reconcile, so add or categorize the fee in the register first, then reconcile the account.

How do I record finance charges in QuickBooks?

Record a finance or interest charge on a loan or credit card as an expense coded to Interest Expense, and a bank service finance charge to Bank Charges. Categorize it from the bank feed or enter an Expense for the amount. Keeping interest separate from service fees gives cleaner numbers on your profit and loss report.

How do I import all my bank fees into QuickBooks at once?

Convert the statement PDF to a .qbo file with the converter at the top of this page and import it. Every fee on the statement, maintenance, wire, processing, and returned-check charges, posts as a dated transaction. You then categorize them to Bank Charges in one pass, which is far faster than entering each fee by hand.

Recorded fees are also a common reason a reconciliation will not balance, so once they are in, follow the full steps to reconcile bank statements in QuickBooks, and if the totals still differ, see why your bank balance doesn't match QuickBooks. When a fee comes from a returned payment, record the bounced check first so the NSF charge ties out. To bring every fee in at once instead of typing them, use the PDF to QBO converter or the step-by-step guide to import bank statements into QuickBooks. To total a year of charges in a spreadsheet first, a bank statement to Excel converter lays out every line, a CSV to QBO converter covers accounts that only export CSV, and matching each fee to its notice is simpler with receipt and invoice data extraction.