Categorize and match online bank transactions in QuickBooks Online
SOLVED•by QuickBooks•438•Updated 6 days ago
Learn how to review downloaded bank and credit card transactions and put them in the correct accounts.
After you connect your bank and credit card accounts, QuickBooks automatically downloads the latest transactions. It looks for and tries to match them with transactions you've already entered into QuickBooks. If it can't find a match, it creates a new transaction record for you. All you have to do is approve the match or newly created transaction.
Note: QuickBooks Online won’t download pending transactions. It only downloads transactions when they’re no longer pending and are officially posted on the bank site.
Step 1: Download the latest bank and credit card transactions
For most banks, we try to refresh the latest available transactions every 24 hours. Some may take a little longer. You can also manually update your accounts anytime:
Go to Transactions and select Banktransactions (Take me there).
Select Update.
This updates all of your bank and credit card accounts.
Tip: If you see a message about additional authentication, follow the prompts to continue the update. Not all banks require this, but some do for added security.
The option is on by default, but may create unnecessary suppliers if not turned off.
The switch is found in the For review settings for Banking.
Select ⚙️.
Turn off New suppliers for Add automatically.
No new transactions you download should auto-create suppliers. Turn back on to auto-create suppliers for newly downloaded transactions.
Note: The Enable suggested categorization ⚙️ setting in the banking window helps to auto-categorize transactions with similar bank details.
Go to Transactions and select Banktransactions (Take me there).
Select the tile for the account you want to review.
Select the For review tab to start your review.
QuickBooks sends downloaded transactions to the For review tab. Review them one by one:
If the category field is blank:
Choose a category from the dropdown.
Add a new category to the dropdown.
If the category field has a category suggested by QuickBooks:
Confirm that category
Change that category by choosing another one from the dropdown or adding a new one.
To streamline the process, you can create a bank rule that automatically categorizes transactions for you.
How to choose the right category
Categorize income—money that was paid to you—to show where the money came from, like sales, customer payments, and refunds. The business might also receive money if you sold a fixed asset, received a bank loan, or you invested in the business.
Categorize expenses—money paid to others—to explain how money was spent, for example, on office supplies, meals, payroll, taxes, and fixed assets. If you pay yourself (called an Owner pay or Owner draw), this “equity transaction” is also considered an expense for the business.
QuickBooks has partnered with a number of banks to automatically include front and back check images for any check transactions awaiting review. This can make it easier to review, categorize, and match transactions.
If you've already connected QuickBooks to a participating bank, the check images load automatically, and no further action is required.
To view the check images:
In the For Review tab, select a downloaded transaction that shows a number in the Attachment column. (In Business View, you’ll just see the.)
In the transaction details, select one of the Check Image attachments to view the image.
In the image panel that appears, you can view the front and back of the check, and expand the image to full screen.
Review the transaction as normal. If you match or add the transaction, you can later find the images in your Attachments list, under Settings ⚙. They will also be attached directly to the transaction form itself.
Note: If your connected bank transactions don’t have check images automatically attached, your bank is not supported. However, it may be supported at a later date as we work to partner with more financial institutions.
For each one, you have the option to match, add, or view multiple matches. Follow the steps below for each option:
Match means QuickBooks has matched the downloaded transaction with the one you've already entered. This links them together so you don't get duplicates.
All you have to do is make sure the match is correct:
Find a downloaded transaction with the Match option in the Action column.
Note the Date, Description, Payee, and amount spent or received.
Select the downloaded transaction to expand the view.
Review the Matching records found in QuickBooks. This is the possible matching transaction you already entered in QuickBooks.
Select the link next to each match to get more details.
Make sure this is the correct match. In particular, review the Deposit to, Payment method, or Bank account fields on forms for the existing transaction in QuickBooks. Note: The fields you see may differ depending upon the transaction you're matching.
If this is the correct match, close the open transaction.
Select Match.
QuickBooks now knows that the downloaded transaction is the same one you've already entered. It connects the two so there are no duplicates. Your work is done.
Find out why there are transactions that don’t have a match
There are cases where some of the transactions can’t find their match from existing records. Here are the possible reasons why.
The amounts don't match
The dates don't match or aren't close
The transaction is older than 6 months Tip: You can still find a match when you select the Find match section.
The bank account on the payment is not the same as the bank where the match is located
The payment has been reconciled
The transaction is already matched to something else
There’s a multi-currency issue with the exchange rates
Note: Bank Feeds will only look for matches that are with in the last 180 days of the current system date. If you have downloaded transactions that are more than 6 months (180 Days) old, the system will not automatically look for a match on these transactions. Also date of possible matched transactions must be within 30 days of Transaction.
Bank-to-bank transfer matching identifies high-confidence matches of such transfers across connected bank accounts. When you add one to QuickBooks Online, the mirroring transaction is auto-matched to the added transaction and marked as Reviewed, thus automating the manual work you'd usually do yourself and saving you time.
QuickBooks will automatically identify outgoing and incoming bank transfers between two of your linked bank accounts by looking for matches in transfer amounts and dates.
Sometimes, when a transfer is imported into QuickBooks Online, you’ll be presented with a suggested transaction pairing that you can confirm or unpair. If the pairing is confirmed, it will mark that transaction as reviewed for both feeds.
Go to Transactions, then select Banktransactions (Take me there) .
When prompted, confirm your paired bank transfers:
To confirm the pairing: in the Action column, select Record transfer.
To remove the pairing: Select the transactions to open the details, and select Unpair. Then, select Categorize or Find match.
To view the settled transactions:
Go to Transactions, then select Banktransactions (Take me there).
Select Categorized and look for the transaction in the list.
In the Added or Matched column, select Transfer [...] to view the transaction details.
To edit a settled transaction:
Go to Transactions, then select Banktransactions (Take me there).
Select Categorized and look for the transaction in the list.
In the Action column, select Undo.
The transaction will return to the For review tab and can be reviewed like normal.
Add means QuickBooks didn’t find an existing matching transaction. Instead, it started a brand new transaction for you using the info from your bank or credit card.
All you have to do is make sure there isn't a match and approve the work:
Find a downloaded transaction with the Add option in the Action column.
Select the transaction to expand the view.
Review the recommended Category. This is the account QuickBooks wants to categorize the transaction into. For example, for a gasoline expense, QuickBooks may suggest categorizing it under expenses related to travel. You can always change the category and put it in a different account.
Change the supplier or customer as needed. Tip: If you think you already entered this transaction into QuickBooks, select the Find match option. Review the list of possible matches and select one if you find it.
Review and add any other information that may be mandatory or missing.
When everything looks good, select Add.
QuickBooks uses this info to create and add a new transaction to your accounts.
Note: QuickBooks sometimes categorizes transactions into the Uncategorized Income or Uncategorized Expense accounts. These are temporary accounts. If you can, always categorize transactions directly into income or expense accounts.
View means QuickBooks found more than one potential match.
All you have to do is pick the right one:
Find a downloaded transaction with the View option in the Action column.
Select View.
Review the Matching records found in QuickBooks. These are the possible matching transactions you already entered in QuickBooks.
Select the link next to each match to get more details.
Make sure one of these is a match. In particular, review the Deposit to, Payment method, or Bank account fields on forms for the existing transactions in QuickBooks. Note: The fields you see may differ depending upon the transaction you are matching.
Compare the potential matches.
When you find the correct match, close the open transactions.
Select the correct match and then select Match.
Step 3: Review matched or added transactions
After you match or add downloaded transactions, they're recorded into QuickBooks. You can review your work and make sure everything is correct in the Categorized or Reviewed tab.
It's a good idea to quickly check this after your review:
Go to Transactions and select Banktransactions (Take me there).
Select the tile for the account you want to review.
Go to the Categorized or Reviewed tab.
Select the link in the Added or Matched column to review the transaction.
Tip: If you need to change or move a transaction to a different account, follow these steps to undo or unmatch it. Make all of your changes before your monthly reconciliations.
column. (In Business View, you’ll just see the