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Categorise and match online bank transactions in QuickBooks Online

SOLVEDby QuickBooks10Updated 2 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:

  1. Go to Transactions and select Bank transactions (Take me there).
  2. 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.

Here's what to do if you have trouble downloading your transactions.

Step 2: Review and categorise downloaded transactions

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.

  1. Select ⚙️.
  2. Turn off New suppliers for Add automatically.

600px_newVendorSwitch_QBO_US_Ext_081823.png

No new transactions you download should auto-create suppliers. Turn back on to auto-create suppliers for newly downloaded transactions.

  1. Go to Transactions and select Bank transactions (Take me there).
  2. Select the tile for the account you want to review.
  3. 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 categorises transactions for you.

  • Categorise 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.
  • Categorise 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.

How to choose the right category

  • Categorise 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.
  • Categorise 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.

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:

  1. Find a downloaded transaction with the Match option in the Action column.
  2. Note the DateDescriptionPayee, and amount spent or received.
  3. Select the downloaded transaction to expand the view.
  4. Review the Matching records found in QuickBooks. This is the possible matching transaction you've already entered in QuickBooks.
  5. Select the link next to each match to get more details.
  6. Make sure this is the correct match. In particular, review the Deposit toPayment 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.
  7. If this is the correct match, close the open transaction.
  8. 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.

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:

  1. Find a downloaded transaction with the Add option in the Action column.
  2. Select the transaction to expand the view.
  3. Review the recommended Category. This is the account QuickBooks wants to categorise the transaction into. For example, for a petrol expense, QuickBooks may suggest categorising it under expenses related to travel. You can always change the category and put it in a different account.
  4. 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.
  5. Review and add any other information that may be mandatory or missing.
  6. When everything looks good, select Add.

QuickBooks uses this info to create and add a new transaction to your accounts.

Note: QuickBooks sometimes categorises transactions into the Uncategorised Income or Uncategorised Expense accounts. These are temporary accounts. If you can, always categorise transactions directly into income or expense accounts.

View means QuickBooks has found more than one potential match.

All you have to do is pick the right one:

  1. Find a downloaded transaction with the View option in the Action column.
  2. Select View.
  3. Review the Matching records found in QuickBooks. These are the possible matching transactions you've already entered in QuickBooks.
  4. Select the link next to each match to get more details.
  5. Make sure one of these is a match. In particular, review the Deposit toPayment method, or Bank account fields on forms for the existing transactions in QuickBooks.
    Note: The fields you see may differ depending on the transaction you're matching.
  6. Compare the potential matches.
  7. When you find the correct match, close the open transactions.
  8. 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 Categorised or Reviewed tab.

It's a good idea to quickly check this after your review:

  1. Go to Transactions and select Bank transactions (Take me there).
  2. Select the tile for the account you want to review.
  3. Go to the Categorised or Reviewed tab.
  4. 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.

You can split transactions, such as a large business travel expense, between multiple accounts for better tracking.

  1. Go to the For review tab.
  2. Select the downloaded transaction to expand the view.
  3. If the option in the Action column is Match, change the Find match to Categorise.
  4. Select Split next to the Add button.

This opens the Split transaction window.

  1. From Category dropdown, select the categories (the accounts) you want to split the transaction into.
  2. Enter an Amount for each split.
  3. Select a Customer or Received From for each split.
    Note: The fieldname may vary depending on the transaction.
  4. When you're done, select Apply and accept.

Exclude personal or duplicate transactions to keep your accounts accurate:

  1. Go to the For review tab.
  2. Select the checkbox for each transaction you want to exclude.
  3. Select Exclude.

Excluded transactions move to the Excluded tab. They won’t be added to QuickBooks or downloaded again.

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