QuickBooks Cash Offers Same Day Deposits and Free ACH Transfers

Unlike the traditional small business bank account model, small business owners will soon be able to  sign up for QuickBooks Cash online from a mobile device or their computer, without ever having to go to a bank. Perfect for doing business during COVID and eliminating a unnecessary step of traveling to your banker, which is often required when setting up a new bank account.   Now we are seeing  Intuit/ QuickBooks offering many important  banking services and banks competing to offer general ledger services. The general ledger is a core feature in QuickBooks and drives the production of financial statements. For instance TD Bank is offering a general ledger, invoicing, accounts receivable management, etc. Kudos to the Intuit CEO, I would do the same and begin offering banking services to protect their core business line. In summary, a QuickBooks Cash account also holds your money like any other bank account and approval can be obtained in minutes.  No more traveling to your local bank. 

What is a QuickBooks Cash Business Bank Account. 

It’s like having a traditionally bank on your desktop or mobile, and some of the benefits are:  

• No monthly fees or account minimums 

• Free Instant Deposit for eligible users-”If you use instant deposits, there's no additional fee for using your QuickBooks Cash account”. If you are not using QuickBooks Cash, and using  QuickBooks Payments to process customer payments in QuickBooks Online, it could  take a few days to get the money into your bank account and there are fees when using QuickBooks Payments. See discussion below for change in fee and timing of deposit.  Now, when using QuickBooks Cash there is no fee for a virtually instant deposit, within 30 minutes.

• 1% yield interest on all balances- You earn interest on both the money you put in and on the interest from your deposits. The interest rate is variable and may change at any time.  

• You receive a debit card 

• Cash flow projections and insights are available. This is a huge addition and maybe the subject of another post.

• Digital bank account with digital envelopes where you can partition funds. This old school and effective method of saving in white envelopes for anticipated expenses can be done digitally.  

Ask yourself ?

Do I need a brick and mortar bank, if most of my transactions are made on online. Am I receiving the old fashion personalized services like the old days or am I underserved at my local bank. If so, then it may make sense to consider using QuickBooks Cash.   

Summary of Key Points

• If you set up instant deposits, you can receive your funds into your bank account in less than 30 minutes. 

• No ACH fees - There is no fee, only if you use QuickBooks Cash. If you start using or change over to QuickBooks Cash, you will save ACH charges, resulting from Intuit's scheduled increase in April 2021. Currently, as of the date of this post, there is no charge for an ACH deposit when using QBO. In April, 2021, there will be an improvement in the number of days for your customer’s deposit to clear the bank, for a small cost. ACH's  will deposit the next business day and you will be charged a 1% transaction fee (max $10) on each transaction. With QuickBooks Cash, your deposits are generally recorded the same day and there is no charge . This seems like a good incentive to consider to change to QuickBooks Cash. This is in addition to the regular fees for processing transactions. as defined in the link.

 Cons and potential obstacles 

 For businesses whose operations and transactions are mostly in cash currency, QuickBooks Cash may not  be a viable option.  

You will need to be approved by Intuit to use  QuickBooks Payments. As a word of caution, it’s important to correctly  categorize your business, otherwise you may not meet the Intuit new customer acceptance procedures and you may be declined. Some reasons for nonacceptance are:  

• Type of products or services you sell (Example: firearms, marijuana or CBD). 

• Industries that are categorized as high-risk merchants (Example: gambling, banking or virtual currencies). 

• Credit History of the QuickBooks Payments primary account owner. 

A detailed list of the prohibited business types as listed by Intuit are scheduled  here.  

This post does not consider all of the reasons to use QuickBooks Cash, since each decision should be based on the facts and circumstances of your business nor does it consider credit card fees, and other processing costs that may exist. Since this program has not been rolled out, the fees and other variables may change and for that information, please consult with your accountant, or Certified QuickBooks ProAdvisor or the Intuit website before making any business decision.