One of our client is using Quickbooks and activated the bank feed.
Instead of raising invoices and receipts for the work done and for expenses, he post them using bank feed.
He has set up rules for each transaction so he just post them as soon as the transaction appear. He do attach invoice/receipt.
My question is that usually if you are paying the suppliers, it takes 2-3 days for the payment to appear in bank statement. So client pays to someone on 15 but the transaction appears in bank on 18th usually after 2-3 days.
Is it ok to use bank feed to post transactions and for accounting and vat purpose or do we have to post invoices/receipts based on the date and then match them with bank transactions?
I came across few businesses using the bank feed set up which is quick and saves time but is it really ok to do that?
Thanks in advance for the answers!