This video introduces the integration of Plaid into the system, explaining how it creates a secure connection between the software and a user’s bank to access real transaction data. It walks through the process of linking a bank account via Accounts Payable settings, verifying the connection, and mapping bank accounts to General Ledger accounts.
The video then demonstrates how this integration enhances financial workflows, including viewing and matching deposits and performing bank reconciliations using live transaction data. By automatically pulling in transactions and enabling auto-matching, the Plaid integration significantly reduces manual data entry and improves accuracy in financial management.
SOP: Connect Plaid, Link Bank Accounts, and Reconcile Transactions
Objective
This SOP explains how to connect Plaid to the system, link bank accounts in the General Ledger, and reconcile transactions using bank reconciliation. It also covers how to handle unmatched transactions by creating and paying an AP invoice so the transaction auto-matches.
Key Steps
1. Connect Plaid to the banking system 0:00
Plaid provides a secure connection between the software and financial institutions.
It allows the system to access bank information with user permission.
Use Plaid to support financial functions such as deposits, bank reconciliation, and credit card transaction visibility.
2. Understand the setup requirement before using Plaid 0:22
Before using Plaid for bank accounts, connect the bank to the system first.
Then connect the General Ledger accounts to Plaid.
Use clearing accounts per tender type to simplify data flowing into the General Ledger.
3. Connect a bank account in Accounts Payable settings 0:48
Go to the main menu.
Navigate to Accounts Payable.
Click Settings.
Select Plaid.
Click + Bank Connection to begin the setup.
4. Verify and add the bank connection 0:59
Enter a phone number that can receive a verification code.
Click Continue.
Enter the verification code when prompted.
Select the bank accounts you want to add to the system.
Confirm the connection until the bank shows as connected.
5. Remove a bank connection if needed 1:44
Locate the connected bank in the Plaid area.
Click the Delete button next to the bank.
Confirm Yes when prompted.
Verify that the bank connection has been removed from the system.
6. Link Plaid to General Ledger bank accounts 2:01
Go to the main menu.
Navigate to General Ledger.
Click Accounts.
Find the bank account you want to connect.
Look for the Plaid icon next to the account.
7. Connect the General Ledger account to Plaid 2:14
Click the Plaid icon for the bank account.
Complete the connection process.
Repeat for any additional bank accounts that need to be linked.
Confirm the account is connected before moving to reconciliation.
8. Start bank reconciliation and pull transactions 2:24
Go to Bank Reconciliation.
Select the date range for the reconciliation.
Use the prior month or the appropriate period.
Select the correct Plaid account number.
Click Get Transactions to load bank activity.
9. Match and verify transactions 2:50
Review the transactions pulled from the bank on the right side.
Compare them to the transactions already in the system on the left side.
For a matching transaction, check the box for the system transaction.
Click the check mark under the bank transaction to verify it.
If needed, use Verify Transaction to reverse the verification.
10. Create an AP invoice for unmatched transactions 3:26
If a bank transaction does not match, create an AP invoice.
Click the chain icon instead of the checkbox.
This opens the AP entry screen.
Click + Invoice.
Select the vendor associated with the transaction.
11. Enter invoice details to match the bank transaction 3:42
Use the same date as the bank transaction.
Enter the exact transaction amount.
Add the reference number.
Select the posting and remaining balance options as needed.
Click the check mark and then Save.
12. Pay the invoice using Bank Draft 4:40
Search for the saved invoice.
Click the Pay icon.
Choose Bank Draft as the payment method.
Make sure the payment date matches the transaction date exactly.
Enter the Bank Draft reference number.
Click Quick Pay to complete payment.
13. Confirm the transaction auto-matches in reconciliation 5:13
Return to Bank Reconciliation.
Click Get Transactions again.
Confirm the paid invoice now appears as auto-matched.
Verify the transaction is cleared and reconciled correctly.
Cautionary Notes
Use clearing accounts per tender type to keep General Ledger data organized and easier to reconcile.
The payment date must exactly match the bank transaction date for auto-matching to work.
Ensure the transaction amount, date, and vendor are entered correctly when creating the AP invoice.
If you remove a bank connection, confirm it is no longer active before proceeding.
Only authorized users should connect bank accounts and enter verification codes.
Tips for Efficiency
Keep the bank transaction date and AP payment date side by side while entering invoice details to avoid mismatches.
Use the search function to quickly locate the invoice after saving it.
Reconcile transactions in smaller date ranges, such as monthly, to reduce errors.
Standardize clearing accounts by tender type before starting Plaid setup.
When matching transactions, verify each item immediately to prevent duplicate work later.