Categorise bank transactions in QuickBooks Sole Trader

Learn how to categorise the transactions you download from your bank in QuickBooks Sole Trader.

After you connect your bank and credit card accounts, QuickBooks Sole Trader automatically downloads the latest transactions and categorises them based on how you, and other customers, categorised similar transactions.

In rare cases, QuickBooks Sole Trader may not auto-categorise or miscategorise your transactions. Here’s how you can get the latest bank transactions, and select the right category for your bank transactions to accurately represent your income and expenses.

Step 1: Download the latest bank and credit card transactions

1. Follow this link to complete the steps in product
2. Select Refresh.

Step 2: Review and categorise downloaded transactions

1. On the Transactions page, review your downloaded transactions for accuracy. Select the Type column header to sort your Business and Personal transactions.
2. For any transactions with the wrong or no category:
   1. From the Category column, select the one you want to change.
   2. From the dropdown ▼, select a category that best describes the reason for the transaction.

Customise transaction categories

You can add, edit or hide or add categories to help you track deductible expenses for taxes. Manage categories is only available while using QuickBooks Sole Trader on a web browser. The changes to categories you make on the web will sync to the QuickBooks mobile app.

Add, edit, or hide categories

On the Transactions page, you can add and edit your own categories or hide categories to customise the category list you see.

Note: You can add up to 180 categories. If you reach the limit you will need to hide or delete any categories you don’t use before adding a new one. To hide or delete a category, you must remove the category from any transactions.  You can only delete categories that you created. Deleting a category will only remove this from your view as a QuickBooks Sole Trader user, if you are connected to an accountant using QuickBooks Online Accountant or QuickBooks Ledger, they will see the deleted categories in the chart of accounts.

Add a category

1. Follow this link to complete the steps in product
2. Select the dropdown next to New transaction.
3. Select Manage categories.
4. Select the appropriate Expense type.
5. Select Add category.
6. Create a name for the category and add a description.
7. Select Save.

Edit a category that you created

1. Follow this link to complete the steps in product
2. Select the dropdown next to New transaction.
3. Select Manage categories.
4. Select the appropriate Expense type.
5. Locate the category and select the pencil icon to edit or delete the category.
6. Edit the Name and/or Description, or select Delete to remove a category.

Hide or unhide a category

1. Follow this link to complete the steps in product
2. Select the dropdown next to New transaction.
3. Select Manage categories.
4. Select the appropriate Expense type.
5. Locate the category and select the visibility icon to hide or unhide the category.

For more information on Sole Proprietorship taxes and learn what expenses are deductible, refer to the Beginner's Guide to Sole Proprietorship Taxes.