How To Connect Your Business Bank Account
Once you sign up for your ReInvestWealth 30-day free trial, you’ll be prompted to first connect your business bank accounts. Doing this will import your recent business transactions automatically and continue to import them going forward.
One important tip would be to use dedicated bank accounts for your business because keeping your business and personal life separate will help you clearly identify all your eligible business tax deductions.
Additionally, you'll have to ensure that you connect every account that you use for business. If you have a line of credit, savings account and credit card used for business, you should connect all of them. If you don’t, you’ll miss out on potential tax saving and create hours of additional work at year-end.
Benefits Of Linking Your Bank Account
Automatic Transaction Updates: When your bank account is connected, transactions are updated automatically in your ReInvestWealth account, saving you time and reducing manual data entry. This ensures that your financial records are always current.
Easier Expense Tracking: With a direct bank connection, categorizing and tracking expenses becomes more efficient. You can view where your money is going, helping to manage budgets better and control unnecessary spending.
Improved Accuracy and Enhanced Financial Insights: Automating transaction entry lowers the risk of human error, such as entering incorrect amounts or dates. Consistent, accurate records are critical for tax filing, real-time financial data, and overall business decision-making.
Challenges When Your Bank Account Is Not Connected
Manual Entry Workload: Without an active bank connection, you’ll need to manually record transactions, which takes more time and effort, increasing the chance of missed or inaccurate entries.
Outdated Financial Data: Without live transaction updates, your financial data may quickly become outdated, leading to potential cash flow issues and making it harder to make timely financial decisions.
Frequently Asked Questions
Is it safe to link my bank account to the ReInvestWealth accounting software?
Yes. ReInvestWealth will connect to your bank using secure technology developed by Plaid, the industry leader in data aggregation. Plaid is used and trusted by reputable businesses such as Shopify, Venmo, Citi, Wealthsimple, and many others. Learn more about why Plaid is used. It is important to note that ReInvestWealth will only have access to your transaction history and balance history, with no control over your funds.
Can I unlink my bank account anytime?
Yes, you can disconnect your bank account if needed. However, be prepared to manually enter transactions and perform reconciliations, which may increase your workload and reduce the accuracy of your records.
What happens to my financial data if I disconnect my bank account?
You will have 1 of 2 choices. First, you can choose for your historical data to remain in the software, but you’ll stop receiving new transaction updates. Second, you can choose to completely erase all data from our system.
How often do transactions update after linking a bank account?
It varies among financial institution. Some banks update transactions only once per day and some offer real-time updates.
Can I link multiple bank accounts to the ReInvestWealth accounting software?
Yes, the ReInvestWealth software allows multiple connections, which is ideal for businesses managing several accounts (e.g., checking, savings, and credit). This makes it easier to track cash flow across accounts.
What if I make a mistake in categorizing a transaction?
ReInvestWealth allows you to edit or re-categorize transactions, so you can correct any mistakes. It’s important to review your entries regularly to ensure accuracy.
Does linking my bank account cost extra?
Linking your bank accounts does not cost extra. It is included in your ReInvestWealth plan.
Will linking my bank account affect my credit score?
No. Linking your bank account to the ReInvestWealth software does not impact your credit score, as the connection is simply for record keeping purposes.
Can linking my bank account help with tax preparation?
Absolutely! Up-to-date, organized bookkeeping allows for easier expense categorization, enabling faster and more accurate tax filing, and making it easier to maximize your tax deductions.