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Categorise online bank transactions in QuickBooks

by Intuit•100• Updated 1 month ago

Learn how to categorise transactions uploaded to QuickBooks Online. When you connect your bank to QuickBooks, transactions are automatically downloaded. QuickBooks suggests categories based on how you've categorised similar transactions in the past.

Note: QuickBooks Online won’t download pending transactions.

This article is for customers who use QuickBooks Online and the QuickBooks mobile app.
This is Katheryn from the QuickBooks team. Once you’ve connected your bank account to online banking in QuickBooks, you’ll download recent transactions every day. Let’s go over how to review the transactions downloaded from your bank, and how to categorise them and post them to QuickBooks. You’ll see a card for each bank account and credit card you’ve connected. Select a card to see the downloaded transactions for that account. Here is where you’ll see all the transactions that QuickBooks downloaded from your bank. These aren't in QuickBooks yet. You still need to post them. Select the customer or supplier for the transaction, then choose the category that best explains why you spent or received the money. The From/To is optional, but it helps you run reports later to see who you paid or who paid you. To change the transaction type, select the transaction, then use the dropdown menu to choose a new type. If the transaction is a sale, you can record the product or service you received the money for instead. You can enter any other notes in the Memo field and, if you have a picture of a receipt, select Add Attachment to upload it. Let’s look at another transaction. QuickBooks uses AI to suggest the most likely categories, based on similar transactions in your books. It looks at details like the supplier, bank description, amount, and more to make smart suggestions. You can see which categories you’ve used with this supplier in the past 24 months… And on which transactions. Select a transaction to open the details. You can also see more about the supplier, and even the URL for the supplier’s website. If one of the suggested categories looks right, just select it, then choose Post. If none of the suggestions fit, no problem—you can still choose a category manually. You can also split a transaction between multiple categories. Select the categories and other details, like the Amount. Just make sure it adds up to the total amount of the transaction. Over time, QuickBooks recognises transactions from the same suppliers and customers, and suggests categories for you based on your history, and other information about the transaction. However, you can still change the category. Once everything looks good, select Post. For some transactions you’ll see Match is toggled, instead of Categorise. These are transactions, such as a bill or an invoice payment or bank deposit, you’ve already entered into QuickBooks. Select the link to view the manual transaction you already recorded. If that transaction matches the transaction downloaded from the bank, select match instead of post. This prevents duplicates. If the match is not correct, don't worry. You can select Categorise to add it to QuickBooks as a brand new transaction. Or, if you know you definitely entered the transaction into QuickBooks and the match is wrong, select Find other matches to match it to the correct transaction. Now you’re ready to categorise transactions for your connected bank and credit cards.

Downloading the latest bank and credit card transactions

QuickBooks usually refreshes your bank and credit card transactions every 24 hours. If needed, you can manually update your bank feed to get the most recent transactions.

Follow this link to complete the steps in product Open this link in a new window

  1. Select Update.
  2. If prompted, complete any additional authentication steps. Some banks require this for extra security.

Note: QuickBooks automatically recognises and adds new suppliers from your bank feed. To turn this off, from the Bank transactions page, go to Settings ⚙ and turn off Add new suppliers.


Step 2: Review and categorise downloaded transactions

In QuickBooks Online, downloaded transactions appear in the Pending tab. QuickBooks suggests a category for each, but you can change it or match to existing records.

You can also quickly review and accept bank transactions, then categorise them from any mobile device using the QuickBooks mobile app.

Follow the steps below based on the device you're using.

  1. Follow this link to complete the steps in product Open this link in a new window
  2. Select the account you want to review.
  3. Select the Pending tab.
  4. For each transaction:
    • Select Post if the suggested category is correct.
    • To change the category, use the dropdown or create a new one.
    • If the transaction already exists in QuickBooks, select match or view multiple matches.

Note: You can create a bank rule that automatically categorises transactions for you. You can also turn suggestions off if you want to manually categorise your transactions.

  1. From the Menu ☰, select Banking.
    • Note: On the iPad, if you have multiple accounts, select the drop-down ▼ arrow to see your list of bank accounts, then you can choose the one you want.
  2. Select New Transactions.
  3. Select Recognised to review transactions QuickBooks Online has already recognised, categorised, and matched for you.
  4. If the transaction is correctly categorised and matched, swipe right to accept it. If the transaction is incorrectly categorised and matched, select the transaction and make the necessary changes.
  5. Select Accept.
  6. Select All to see any remaining, uncategorised transactions.
  7. Select the transaction, then review and add categories as necessary.
  8. Select Accept.
  1. From the Menu ☰ , select Transactions.
  2. If multiple banks are connected, select the bank you want to work with.
  3. Select the transaction you want to categorise.
  4. Depending on your mobile device:
    • iOS: Tap > beside a field then select an option. Select Accept.
    • Android: Under Category, tap >. Select a category and then select Confirm.
  5. Select Accept.

Step 3: Choose the right category

Correct categorisation keeps your records accurate. Use these guidelines to help decide whether a transaction is income or an expense.

Use these categories for money received from:

  • Sales
  • Customer payments
  • Refunds
  • Sale of fixed assets
  • Bank loans 
  • Owner investments

Use these categories for money paid to others, such as:

  • Office Supplies 
  • Meals
  • Payroll 
  • Taxes
  • Fixed assets

If you use QuickBooks Online Plus or Advanced, you can track expenses by item. This is useful if you manage stock or job costing.

  1. Go to Settings Settings gear icon. and select Account and settings.
  2. Select Expenses.
  3. Select Edit next to Bills and expenses, then turn on Show Items table on expense and purchase forms.
  4. Select Save then select Done.

Note: To use the Estimates vs. Actuals report in QuickBooks Online Advanced, you need to track your expenses by item. If you're not sure whether you need to use item tracking, talk to your accountant.


Recording expenses with a product or service

When recording an expense from the bank feed, you can assign it to an account, a product or service, or both. If you use both, you’ll need to split the transaction.

  1. Follow this link to complete the steps in product Open this link in a new window
  2. Under the Pending tab, find and select the transaction.
  3. From the Product/service ▼ dropdown, select the item.
    Note: To use both the Product/service and Account, you'll need to split the transaction.
  4. Select Post.

Split sales receipts across different products or services for better tracking.

Follow this link to complete the steps in product Open this link in a new window

  1. In the Pending tab, select the transaction, then select Split.
  2. Enter the amount in the Amount field.
  3. Select Split and post.

If a transaction covers more than one type of expense or income, you can split it between categories.

Follow this link to complete the steps in product Open this link in a new window

  1. In the Pending tab, select the transaction.
    Note: If the option is Match, change it to Categorise.
  2. Select Split to open the Split transaction window.
  3. From the Category ▼ dropdown, select the categories for the split.
  4. Enter an Amount for each category so the Difference shows GBP £0.
  5. Fill out all the necessary information.
    Note: The field name may vary depending on the transaction.
  6. Select Split and post.

Categorise personal transactions on a business account

If you use your business account for personal transactions, you can still categorise them correctly:

  • Spending business money personally or owner's draw.
  • Adding personal money to a business or owner's investment.

Viewing cheque images

QuickBooks works with select banks to display cheque images for cheque transactions in your bank feed. You’ll see a link if the image is available.


What's next?

If you're unsure how to review, match, or categorise transactions—or need help uploading them manually—sign in to QuickBooks and start a discussion with a qualified QuickBooks Expert in the community.

  • The cheque image disconnects when cheques are matched to a bill and converted into a bill payment.
  • If your connected bank transactions don’t have cheque 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.


Result

After completing these steps, your bank transactions will be categorised correctly in QuickBooks Online. This helps maintain accurate financial records and ensures your reports reflect real activity.



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