In this four-part series, I’m reviewing some of my favorite tips for working with bank and credit card feeds in QuickBooks® Online. This article is part three in the series; here are part one and part two, in case you missed them.
After connecting your bank and credit card accounts, QuickBooks will scan your bank data looking for matches, rules and recognized transactions. As you review the data, you match the bank feed transactions against existing transactions in QuickBooks. If there is not a match found, you can add transactions directly from the bank feed.
Here are five tips for adding transactions. In the next and final part of this series, I’ll share my tips for matching transactions.
Tip #1: Configure the Bank Feed Settings
Under the small gear, you’ll find options to configure the bank feed settings.
Add/remove payee and check number columns to make sure you are capturing the necessary details as you add transactions.
“Editable Date Field” allows you to change the date of transactions from the bank. Use this with caution.
“Copy Bank Detail to Memo” is turned on by default and I recommend leaving it on. The Bank Detail tends to share more information than the “cleaned up” QuickBooks Description, and having these details in the memo field may be helpful during reconciliation.
“Show Bank Details” can be turned on and off to change the “cleaned up” QuickBooks description to the Bank Detail in the bank feed itself.
Tip #2: Sort the Bank Feed
You can choose to sort the bank feed by any column. Maybe, sorting oldest to newest works best for you? Perhaps, you’d prefer to sort by payee or check number? Choose whichever configuration helps you work more effectively to add your transactions to the books.
There’s additionally a filter to view “All” or “Recognized.” Recognized will display transactions with a match or rule, and any transactions QuickBooks has auto-categorized based on your past behavior.
Tip #3: Complete Your Transaction Details
As you add, click to expand the transaction and make sure you are filling in all applicable fields, particularly if you use some of the advanced features of QuickBooks Online Plus, such as billable expenses or class/location tracking. Use the Split tool if you need to divide the transaction across multiple categories or classes.
Tip #4: Turn Off Automatic Categorization, As Needed
As you add, QuickBooks learns from your behavior and remembers how you categorized transactions. Most of the time, this will save you time working in the bank feed in the future.
However, for some transactions, you may not want QuickBooks to suggest the category going forward. In this case, after choosing the category, click “Edit this Setting” and check the box to leave the transaction Uncategorized from now on.
“Leave [Bank Description] Uncategorized” allows you to indicate what category to use each time you add a transaction fitting that description. A special “Uncategorized” rule is saved in QuickBooks and “Uncategorized Expense” or “Uncategorized Income” will appear going forward (unless QuickBooks finds a match, or a different rule is applied).
Tip #5: Utilize Batch Actions to Save Time Adding Like-Transactions
You can use Batch Actions> Modify Selected to assign the payee, category and other details in batch to like-transactions. Use your shift key to select multiple transactions at once.
Additionally, use Batch Actions> Accept Selected to add transactions in batch, instead of accepting each transaction individually.
These tools can be especially useful if you are adding several months of transactions in one sitting.