Money by QuickBooks is a new offering from Intuit designed to help small businesses manage their cash flow. Originally announced in October 2021, it is available as a mobile app through Android and Apple platforms.
Its purpose is to give entrepreneurs, freelancers, and new businesses the ability to easily accept payments and manage expenses through the use of a debit card and bill payment capabilities.
How Does Money by QuickBooks Work?
Once the mobile app is downloaded, the user can apply for a Money by QuickBooks account that has no monthly fees or minimum balance requirements. When their account is activated, they’ll be able to request and accept payments through debit, credit, and ACH transfer. Customers are not required to have the app in order for them to receive payment.
Users of Money by QuickBooks can request a QuickBooks Visa business debit card that allows them to access business cash through over 19,000 Allpoint ATMs nationwide. A small fee may apply if cash is withdrawn from a non-Allpoint ATM. The debit card and banking services are managed by Green Dot Bank, a partner of Intuit.
Why Should I Get a Money by QuickBooks Account?
If you are newly starting out as a freelancer or sole proprietor, Money by QuickBooks gives you access to a few features that aren’t available with typical business banking accounts. You’ll be able to easily see your business transactions and monitor your expenses through a clean interface on your mobile phone.
QuickBooks controls a significant amount of the market for small business bookkeeping software. Should you decide you need it, you’ll be able to easily integrate your financial data from Money by QuickBooks into the QuickBooks Online software.
Most freelancers and small business owners need bookkeeping software. It makes tax time a lot easier and provides them with valuable insights that they can use to improve their cash flow position and make strategic business decisions.
When you are just starting out, you may not know if your business will succeed or not. However, having the right tools available can help new entrepreneurs to start off on the right foot. Money by QuickBooks is one of those tools.
What Are the Advantages of Money by QuickBooks?
Money by QuickBooks includes an FDIC-insured bank account underwritten by Green Dot Bank. Using the bank ensures that your balance is protected up to $250,000 by the Federal Reserve. This protection means that if the bank should ever fail, your money is safe. While most checking accounts in the U.S. are covered by FDIC insurance, some aren’t.
The use of the Money by QuickBooks mobile app allows entrepreneurs the ability to have a quick peek at how their business is performing.
It can show you your earnings and expenses for each month, as well as by quarter or year. Other business bank accounts usually don’t have this ability. Instead, you’d need to comb through your monthly transactions to get insight into your company’s performance.
You’ll also have the ability to send payment requests from anywhere. If you operate a business that requires you to be on the road or outside of your home, this can be especially helpful.
Customers won’t need the app to pay you. When you send a request for payment, the customer will receive an emailed link that will allow them to pay via credit card, debit card, ACH transfer, or Apple Pay.
This flexibility is tremendously valuable for companies that want the ability to invoice their customers or give them options to pay but currently need to rely on cash, checks, or wire transfers because they don’t have any other payment processing structure.
Your bank account will be eligible for Same Day Deposit in most cases. This service means that payments received through the platform — whether in the morning, evening, or on the weekend — will be available for your immediate use. You can receive money in your account up to three times a day, including on holidays.
Many bank accounts offer financial services that allow their users to set up regular payments through an online banking feature. Money by QuickBooks has the same capability. This service helps to ensure that you pay your bills on time, never missing a due date.
How Much Does it Cost to Use Money by QuickBooks?
The mobile app and the debit card have no monthly fees or minimum balance requirements. You can easily make payments or use the Pay feature to make purchases with your debit card anywhere Visa is accepted.
The main competitors of Money by QuickBooks are Square and PayPal Business. Both offer similar features and a business debit card. However, their fees associated with collections are higher than those Money by QuickBooks is able to offer through Green Dot Bank.
Fees associated with accepting client payments from Money by QuickBooks, Square, and PayPal Business are indicated below. These fees are correct as of January 28, 2022:
ACH Bank Transfer
An ACH collection occurs when your customer sends payment to you via their bank using a routing code and account number.
There is a 1% fee charged on all Money by QuickBooks ACH collections, up to a maximum of $10. In comparison, Square charges a 1% fee with no maximum, and PayPal Business charges 3.49% of the transaction plus 49 cents.
Credit/Debit Card Receipts
If you send an invoice to your customer, who then pays you via the given link, a small transaction fee will apply to your collection if the payment is made via credit or debit card.
QuickBooks by Money charges a 2.9% fee for transactions received via credit or debit card payment. The maximum transaction that can be made through a credit or debit card is $100,00.
Stripe also charges a 2.9% fee, but there is an additional fee of 30 cents for all credit and debit transactions. The maximum transaction amount that can occur through this method is $50,000.
PayPal Business charges 3.49% plus a 49 cent fee on all credit and debit card transactions. Transactions are limited to $10,000 or less.
ATM Withdrawal Limit
Both Money by QuickBooks and Square impose a $1,000 limit on all daily withdrawals from the ATM. PayPal Business has a daily withdrawal limit of $400. If you typically withdraw cash regularly from your account, Money by QuickBooks and Square have fewer limitations.
If you decide to withdraw money from your account, you’ll need to do so from an Allpoint ATM. These are the only fee-free ATM locations supported by Money by QuickBooks at this time. Otherwise, you will pay a small extra fee for your withdrawal.
Can I Use Money by QuickBooks Without the Debit Card?
Yes, Money by QuickBooks can be used without ordering a debit card from Green Dot Bank. You are able to connect your current bank accounts with Money by QuickBooks and pay bills using the Pay feature, and you’ll also be able to send requests for payment to your customers.
Are There Any Disadvantages to Using Money by QuickBooks?
Money by QuickBooks is a great solution for those just starting out on their freelancing or entrepreneurship journey. It gives them the ability to quickly invoice their customers, collect payments, and manage business expenses. They’ll also have basic business insights to track their performance over time.
According to the current product information, Money by QuickBooks cannot be directly integrated or shared directly with QuickBooks Online.
However, you can still directly connect your Green Dot bank account with QuickBooks Online using their bank account connection feature. You just won’t see the same insights that you have with the Money by QuickBooks mobile app.
What Other QuickBooks Products Are Available?
There are a number of QuickBooks products designed with the small business owner in mind. The main offering by Intuit, QuickBooks Online, remains a mainstay for small businesses seeking an easily manageable bookkeeping solution.
Intuit QuickBooks allows you to manage your company’s business activities, including invoicing and payments. It also provides you with a set of financial statements that can be used to analyze your cash flow and business performance. You can use these statements and insights to make financial decisions for your company.
QuickBooks Online is also very helpful at tax time. You’ll be able to provide your accountant with a full set of financial statements that they can use to prepare your annual tax return. QuickBooks Online offers a variety of different pricing plans for individuals who are just starting out or running well-established companies.
Once you decide to use QuickBooks Online, you’ll be able to access data from a mobile app or anywhere with an internet connection. It is available for both Windows and iOS users.
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