Intuit has aligned with a bank called Green Dot to provide QuickBooks Online users with an integrated checking account. This account, called “QuickBooks Cash and Envelopes,” is designed to house funds received from your QuickBooks Payments merchant services. Per Intuit, it “combines a checking account, savings envelopes, merchant service payments, and a cash flow planner all in one integrated interface.” Here is a quick look at Intuit’s selling points:
Open for Free: The Cash + Envelope account is free to open, has no minimum opening deposit or daily balance requirements and no monthly service fees
Debit Card: A physical debit card is associated with the account
Envelopes: Virtual envelopes allow you to set aside money for specific planned or unexpected expenditures
Interest Rate: A rate of 1% paid on all balances
Free Instant Deposit: Deposits processed through QuickBooks Payments are available instantly 24/7
Cash Flow Planner: Provides a full view of a business’s finances via a dashboard
Bill Pay: Small businesses can schedule vendor payments and manage all their money-out transactions in one place
Integrations: QuickBooks Cash seamlessly integrates across the QuickBooks Online platform
Wow, sounds great right? Well, before you rush to get this service, there are some other things you should know.
The Reality of Cash + Envelopes
If you are looking for a way to add frustration to your daily routine, this new QBO bank account feature is the solution for you. For example, if you want to:
Transfer Funds: Be sure to plan! It takes 2-5 days for your money to get to your checking account. This assumes, of course, that you can figure out how to transfer it.
Cash Flow Menu: To transfer funds from the Cash + Envelopes to your checking account, you need to go through the Cash Flow Menu. Some users do not have that menu and need to use the QBO app on their phone. If you don’t see the Cash Flow Menu on the left, you can try to access it via the gear. If that fails, you will need to use an app on your phone.
Account Number: Despite having your non-Cash + Envelope accounts linked in QBO, you are required to enter the routing and account number for your destination account every time you transfer funds. That’s right, EVERY time.
Access: Have problems moving funds? You are on your own. Your bookkeeper or accountant cannot access your Cash + Envelope’s account.
QuickBooks Cash + Envelops leverages the Profit First idea that for your business to be successful, it’s a good idea to set aside funds for your profit, owner pay, payroll, taxes, and a rainy day fund. Conceptually, Profit First suggests the money is out of sight and out of mind.
There are several opinions surrounding Profit First. Some love it. Others believe that you must invest in your business and by sweeping profits out, you are killing growth. I am in the latter camp and think that growing a business requires investment and a patience.
If you have QuickBooks Cash + Envelopes, or are considering implementing it, contact us. We can help you navigate the mechanics involved with transferring funds and managing the account. Find out more at www.budgetease.biz.