How to use bank rules in QuickBooks Online

[0:00] You can use bank rules in QuickBooks Online to speed up the process of categorizing transactions. When you set up bank rules, QuickBooks enters categories and descriptions into transactions for you. Bank rules can also enter transactions to your books automatically, if you choose. Let's go through how to create, use, and edit bank rules. To start, select All Apps, Accounting, and then, Rules.

[0:24] Then, navigate to "new Rule". First, enter a name for the rule. Next, select whether the rule is for money in or money out transactions and which bank and credit cards it applies to. Then enter what you want QuickBooks to look for in the transactions you receive from your bank and credit cards.

[0:44] You can choose the Description or Bank Text, which are details sent by the bank, and base it on text that either is or isn't in there. Or, base it on the Amount of the transaction. Add as many conditions as you need. If you already have some transactions awaiting your review, select Test Rule to see if what you've entered so far applies to any of them.

[1:07] This feature helps you confirm that you entered the correct conditions. If the rule does not apply to any currently unreviewed transactions, but should, adjust the conditions. Finally, you decide what QuickBooks does with downloaded transactions that meet the criteria you entered. Select the transaction type you want these transactions posted as.

[1:29] Then, enter the category you want QuickBooks to apply to the transaction. QuickBooks can also split transactions between multiple categories by percentage or amount. The rule can also apply other info such as payee, customer, project, and more. You may see different options depending on the company settings you've turned on.

[1:50] Adding info like the payee ensures you'll have accurate records and helps you to reconcile and run reports. If you turn on auto-add, QuickBooks applies the rule to any downloaded transaction it applies to and posts it immediately. Remember to use this with caution, because if you leave it on you won't get a chance to review transactions before QuickBooks adds them to your books.

[2:14] Select Save to create your rule. If you need to change a rule later, select Edit. Select the Action drop down arrow…and you can copy, disable, or delete a rule. Disable the rule to stop it from applying to transactions temporarily until you re-enable it. Delete a rule to permanently remove it.

[2:34] QuickBooks applies rules to transactions in the order they are in the rules center because QuickBooks can only apply one rule per transaction. Change the priority of your rules by selecting and dragging the grid. You can also export rules to use in a different company or import rules from another company. Go back to Bank Transactions.

[2:56] Whenever QuickBooks downloads a transaction, you can see if QuickBooks applied a rule to it. Select the Posted tab…and you'll see the transactions you and QuickBooks confirmed. You'll see "Auto-post" next to any transaction that QuickBooks automatically confirmed with a rule Now you're ready to use bank rules to categorize and confirm your transactions in the banking center!