QBO QuickBooks ^® Recurring FedNow Payments

To establish recurring FedNow payments for subscriptions with "Standing Approvals" without subsequent manual invoice sending via QBO or QuickBooks for either payers or payees, automation is key. Here's how this can be achieved:

Initial Setup:

1. Subscription Configuration: Payees (service providers) set up subscription plans within their QBO or QuickBooks accounts, defining the payment frequency, amount, start date, and duration (if applicable) for each subscriber.
2. Standing Approval Authorization: Payers (subscribers) provide initial authorization for recurring payments, granting consent to participate in the subscription service. This authorization is facilitated through a one-time setup process.

Automated Recurring Payments:

1. Automated Payment Initiation: Once standing approvals are established, recurring payments are automatically initiated by the payer's financial institution according to the predefined schedule (e.g., monthly, quarterly) without manual intervention.
2. Funds Transfer: FedNow facilitates real-time funds transfer from the payer's account to the payee's account for each scheduled payment, ensuring timely and efficient payment processing.

Invoice Generation and Management:

1. Automatic Invoice Creation: QBO or QuickBooks automatically generates invoices for each scheduled payment based on the subscription details and payment schedule configured by the payee.
2. Invoice Delivery: Invoices are delivered to payers electronically via email or through an online portal, eliminating the need for manual invoice sending by payees.

Payment Tracking and Reconciliation:

1. Payment Confirmation: Payees receive automated confirmation of payment receipt for each invoice processed, providing transparency and acknowledgment of payment completion.
2. Payment Reconciliation: QBO or QuickBooks automatically reconciles payments received with corresponding invoices, ensuring accurate financial records and minimizing manual reconciliation efforts.

Benefits:

1. Efficiency: Automation streamlines the subscription payment process, reducing manual intervention and administrative overhead for both payers and payees.
2. Convenience: Payers benefit from automated invoice receipt and payment processing, while payees enjoy seamless invoice generation and payment reconciliation.
3. Accuracy: Automated invoice creation and payment reconciliation minimize errors associated with manual data entry and processing, ensuring accurate financial records.
4. Compliance: Standing approvals and automated processes help ensure that payments are made in accordance with subscription terms and regulatory requirements.

By leveraging automation within QBO or QuickBooks for recurring FedNow payments, both payers and payees can enjoy a seamless subscription payment experience without the need for manual invoice sending or processing. This enhances efficiency, accuracy, and convenience for all parties involved.