How to categorize transactions from your bank & credit card

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 categorize 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 vendor 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 vendor, bank description, amount, and more to make smart suggestions. You can see which categories you’ve used with this vendor in the past 24 months… And on which transactions. Select a transaction to open the details. You can also see more about the vendor, and even the URL for the vendor’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 recognizes transactions from the same vendors 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 Categorize. 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 Categorize 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 categorize transactions for your connected bank and credit cards.