Recording an EFT payment in QuickBooks Online takes about a minute using the Expense form, which you access through the + Create menu. The exact workflow depends on whether you already entered a bill for the payment or you’re recording the expense from scratch. Both paths are straightforward once you know where to go.
Recording an EFT Payment Without a Bill
This is the most common scenario: you paid a vendor or service provider via electronic funds transfer and there’s no bill sitting in QuickBooks waiting to be marked as paid. You’ll record it as a standard expense transaction.
- Select + Create (the plus icon near the top of your screen).
- Select Expense.
- From the Payment account dropdown, select the bank account the EFT came out of.
- In the Payee field, choose the vendor you paid. This is technically optional, but filling it in keeps your vendor reports accurate.
- Enter the Payment date to match the date the EFT was initiated or cleared.
- In the Ref no. field, type a note that identifies the transaction, such as “EFT” followed by a confirmation number or invoice reference. This makes it easier to find and match later.
- In the Category details section, select the appropriate expense account (rent, utilities, professional services, etc.).
- Enter the payment amount.
- Select Save and Close.
That’s it. QuickBooks will reduce the balance of the bank account you selected and post the expense to whatever category you chose. If you need to split the payment across multiple categories, add additional lines in the Category details section and assign amounts to each one.
Recording an EFT Against an Existing Bill
If you already entered a bill in QuickBooks and now need to record the EFT that paid it, don’t use the Expense form. That would double-count the expense. Instead, use the Pay Bills workflow so QuickBooks clears the outstanding bill from your accounts payable balance.
- Select + Create.
- Select Pay Bills.
- Choose the bank account the EFT came from.
- Set the payment date to the date the EFT was sent or cleared.
- Find the bill in the list and check the box next to it.
- Select Save and Close.
QuickBooks will mark the bill as paid, reduce your accounts payable, and decrease the bank account balance. The expense was already recorded when you entered the bill, so the payment step just moves the liability off your books.
Adding EFT as a Payment Method
QuickBooks Online comes with a default set of payment methods (cash, check, credit card), but EFT isn’t always included. Adding it as a custom option keeps your records consistent, especially if you receive EFT payments from customers and want them labeled correctly on invoices and sales receipts.
- Click the Gear icon in the upper right.
- Select All Lists.
- Choose Payment Methods.
- Select New and type “EFT” (or “ACH” if you prefer that label).
- Save.
Once created, you’ll see EFT as an option in payment method dropdowns throughout QuickBooks. This is most useful on the receiving side, where invoices and sales receipts have a dedicated payment method field. On the expense side, the Ref no. field is where you’ll typically note that a payment was made via EFT.
Matching EFT Transactions From Your Bank Feed
If your bank account is connected to QuickBooks Online, the EFT will eventually show up as a downloaded transaction in the Banking tab (sometimes called Transactions). When it does, you have two options: match it to the expense you already recorded, or categorize it directly from the feed if you haven’t recorded it yet.
To match a downloaded EFT to an existing record, open the Banking tab and look for the transaction. QuickBooks tries to auto-match based on the amount, date, and payee name. If it finds a match, you’ll see the suggested record underneath the transaction. Review it, and if it looks correct, select Match. The downloaded transaction links to your existing entry, and nothing new gets created.
If QuickBooks doesn’t find a match automatically, you can search manually. Select the transaction and choose to match it to an existing record, then browse or search for the correct one. If the amounts differ slightly (a bank fee was deducted, for example), you can use the resolve option to split the difference.
If you haven’t recorded the payment yet and the EFT just showed up in your feed, you can categorize it directly. Select the transaction, assign a payee and expense category, and select Add. QuickBooks creates the expense entry for you. This approach works fine for simple, one-category payments, but you lose the ability to add detailed line items the way you can on the full Expense form.
Tips for Keeping EFT Records Clean
The biggest risk with EFT payments is double entry. If you record an expense manually and then also add the same transaction from your bank feed without matching it, the payment shows up twice. Before adding any bank feed transaction, check whether a match already exists. QuickBooks flags potential matches, but it can miss them if the dates or amounts are slightly off between your entry and the bank’s record.
Use the Ref no. field consistently. A good habit is to enter “EFT” plus the last four or five digits of the transaction confirmation number your bank provides. This gives you a searchable reference and makes bank reconciliation faster because you can cross-check the confirmation numbers against your bank statement. If you’re recording multiple EFT payments on the same day to the same vendor (rare, but it happens), unique reference numbers are the only thing that keeps them distinguishable in your register.
For recurring EFT payments like rent, insurance, or loan payments, consider setting up a recurring expense in QuickBooks. Go to the Gear icon, select Recurring Transactions, and create a new scheduled expense with all the details pre-filled. QuickBooks will either auto-post the transaction on your chosen schedule or remind you to review and approve it, depending on which option you pick. When the bank feed transaction comes through, you simply match it to the recurring entry.