Connect the bank and credit card accounts you use for your business.
You may have already connected your bank and credit card accounts when you set up QuickBooks. But if you didn’t, you can do that by clicking Connect account. QuickBooks will walk you through the rest. Once your bank and credit card accounts are connected, QuickBooks downloads the transactions directly into QuickBooks.
The first time QuickBooks downloads your transactions, it's up to you to review and categorize your expenses.
On your Dashboard, go to the Profit and Loss section and click Review transactions.
Click Let’s do it to get started.
The first transaction you see is an expense.
If possible, QuickBooks fills in who you paid and what it was for. In this case, the category is Offices Supplies. You can change this information if you need to. In this case, office supplies is correct so you would click Add to add it to your books.
QuickBooks finds other expenses just like the one you added. If all this looks right to you, click Add them all.
This is where QuickBooks starts to help you out. It’s found other expenses that look like the one you just added and has assigned them all the same category.
If you’re not sure about a category, you can pick “Ask my Accountant.”
On the next expense, choose “Ask my Accountant.” Click Add.
When you’re done reviewing the most recent expenses, you can go back to the dashboard to see how you’re doing.
Click See your updated dashboard.
QuickBooks lets you know if you have earlier expenses that need to be reviewed.
On your Dashboard, look in the Bank Account area. If there’s a number there, that’s the number of transactions left to review. Click the number to do that.
As you categorize more expenses, QuickBooks learns from you so it can help.
A transaction in green means QuickBooks recognizes that you categorized a similar transaction in the past, so it automatically assigns the same category for you.
If you see a category in black, that’s QuickBooks’ best guess for how to categorize this transaction. Click Add next to a transaction to add it to your books.
If it’s a wrong guess, just change the category and QuickBooks learns for next time.
Click on a transaction then select another category.
You can also add a picture or a PDF of the receipt to the expense which is a huge benefit for tax time.
Click Add Attachment, choose a photo for the receipt. Click Add to add a photo of your receipt.
You can also match transactions already in QuickBooks.
Sometimes QuickBooks already knows about a transaction. Say you’ve printed a check from QuickBooks. The bank also has a record of that check. So QuickBooks matches the bank’s transaction with the check you printed in QuickBooks. Click Match to add a matched transaction.
After you’ve categorized and added expenses from your bank account, you can view them all under In QuickBooks.