Categorize Bank and Credit Card Transactions in QuickBooks Online

by James Antonio

Learn how to categorize bank and credit card transactions in QuickBooks Online.

A transaction report where you do not have to dig in to understand what is what, you can just run through it and can get the idea on categories of expenses. Well, it is not impossible, actually, it is very much possible with the help of the categorization feature of the QuickBooks Online. This feature lets you categorize your bank and credit card expenses, once you incur them the first time. And after that, it will automatically categorize the similar nature of expenses with the same details.

Bank and Credit Card Transactions in QuickBooks Online

The only work you would need to do is review those transactions and add them to the ledger account where you want it to reflect in QuickBooks. The properly categorized transaction helps in efficiently managing the business, it helps in tracking expenses and you can even analyze and apply measures for optimizing the expenses. For using the categorizing transaction feature in QuickBooks online for bank and credit card transactions, you will have to first link your account to the Bank feeds in QBO.

After that, your downloaded transactions will appear in for review tab, from there you can go ahead and categorize them into their respective categories. We will discuss the process in detail in the next section.

Steps to Categorizing Bank and Credit Card Transactions in QuickBooks Online

Follow the below mention steps to categorizing bank and credit card transactions in QuickBooks Online.

Process Steps for Categorizing Bank and Credit Transactions

As soon as you connect your bank or credit card account to the QuickBooks bank feed, it will start downloading the transactions on a daily basis automatically. Now the only work left would be to review each transaction and categorizing them into correct accounts in QuickBooks. You can do so by following the below steps in the same order:

Step 1. At the first step, you need to open QuickBooks and click on Banking from the left menu bar and click Banking again.

Click on Banking

Step 2. Once you click on the Banking you will be directed to the page where all your linked accounts will reflect including your checking account, saving bank account, and credit card account. You need to go to the For Review tab.

Credit Card Account

Step 3. The transactions that appear on for review page aren’t yet there in QuickBooks. So, you need to first categorize them. For this purpose, you need to click on each expense line incurred through your bank account or credit card account.

Step 4. After that, you need to fill in the details like Vendor/ customer name, category of expense (existing or new), project name, billable, etc. Also, you can add a custom label in the tag box to track the expenses and memo number.

Category of Expense

Step 5. After you have filled in all the relevant details, click on add. After this, QuickBooks will automatically recognize the transaction with similar details and categorize them in the same category.

Step 6. There are some transactions against which you would see Match option instead of Add. These are the transactions that are already there in QuickBooks, you just need to match them by reviewing them.

The process is the same for Bank as well as credit transactions. Let us now also see how can we link the bank or credit card account to QuickBooks online, just in case you need it:

The Process is the Same for Bank as well as Credit Card Account

Step 1. First of all, click on the Banking menu and click on Add account.

Step 2. Now search your bank and login to your bank’s website by entering your credentials.

Step 3. In this step, select the bank or credit card account you want to connect, type of account and date range from when you want to download the transactions.

Step 4. After that click on connect and follow the onscreen instructions to link the bank/ credit card account.


Need Some one on one QuickBooks Assistance?


Can you let me know the process of classifying credit card payment in QuickBooks?

First, open QuickBooks and go to the ‘New’ button (with + icon). After clicking on new click on Expense or check. Now you need to enter the details required like payment account, amount, interest amount (if any). You will be able to easily track the payment once you classify the payment. Once you have entered relevant details for classification, click on save and close.

Can you please list down the steps to reconcile the Credit card account in QuickBooks?

You can start the process by selecting your credit card and then choosing the credit card you wish to reconcile. Now choose the statement date and enter your ending balance and finance charges (if any). After entering the details and matching the transactions click on reconcile your Account and then click on save. Once you are done you can write a check.

How can I categorize and re-categorize the transactions by batch in QuickBooks Desktop and QuickBooks Online?

Open QuickBooks and select the new transactions from the drop-down list. Now choose enter bills and then go to the item tabs. Now select the type from the drop-down menu. You need to enter all the relevant details as required and press save and close.

How can I create categories and sub-categories for grouping items in QuickBooks Online?

You need to first open QuickBooks and click on classes menu. After that, you need to go to the sales menu and choose Product and services. Now click on More from the drop-down menu and then click on Manage categories. After that, you can select a new category and enter its name and save it. In case you want to create sub-category, you can click on ‘Is sub-category’ check box under the main category.

Features of Dancing Numbers for QuickBooks Desktop

Imports

Imports

Exports

Exports

Deletes

Deletes

Customization

Customization

Supported Entities/Lists

Dancing Numbers supports all QuickBooks entities that are mentioned below:-

Customer Transactions

Invoice
Receive Payment
Estimate
Credit Memo/Return Receipt
Sales Receipt
Sales Order
Statement Charge

Vendor Transactions

Bill
Bill Payment
Purchase Order
Item Receipt
Vendor Credit

Banking Transactions

Check
Journal Entry
Deposit
Transfer Funds
Bank Statement
Credit Card Statement
Credit Card Charge
Credit Card Credit

Employee Transaction / List

Time Tracking
Employee Payroll
Wage Items

Others

Inventory Adjustment
Inventory Transfer
Vehicle Mileage

Technical Details

Easy Process

Bulk import, export, and deletion can be performed with simply one-click. A simplified process ensures that you will be able to focus on the core work.

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Pricing

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Importer, Exporter & Deleter

*See our Pricing for up to 3 Company Files

$199/- Per Year

Pricing includes coverage for users
  • Services Include:
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  • Unlimited Import
  • Unlimited Delete

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Accountant Basic

*See our Pricing for up to 10 Company Files.

$499/- Per Year

Pricing includes coverage for users
  • Services Include:
  • Importer,Exporter,Deleter
  • Unlimited Users
  • Unlimited Records
  • Upto 10 companies

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Accountant Pro

*See our Pricing for up to 20 Company Files.

$899/- Per Year

Pricing includes coverage for users
  • Services Include:
  • Importer, Exporter, Deleter
  • Unlimited Users
  • Unlimited Records
  • Up to 20 companies

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Accountant Premium

*See our Pricing for up to 50 Company Files.

$1999/- Per Year

Pricing includes coverage for users
  • Services Include:
  • Importer, Exporter, Deleter
  • Unlimited Users
  • Unlimited Records
  • Up to 50 companies

Frequently Asked Questions

 
How and What all can I Export in Dancing Numbers?

You need to click "Start" to Export data From QuickBooks Desktop using Dancing Numbers, and In the export process, you need to select the type you want to export, like lists, transactions, etc. After that, apply the filters, select the fields, and then do the export.

You can export a Chart of Accounts, Customers, Items, and all the available transactions from QuickBooks Desktop.


How can I Import in Dancing Numbers?

To use the service, you have to open both the software QuickBooks and Dancing Numbers on your system. To import the data, you have to update the Dancing Numbers file and then map the fields and import it.


How can I Delete in Dancing Numbers?

In the Delete process, select the file, lists, or transactions you want to delete, then apply the filters on the file and then click on the Delete option.


How can I import Credit Card charges into QuickBooks Desktop?

First of all, Click the Import (Start) available on the Home Screen. For selecting the file, click on "select your file," Alternatively, you can also click "Browse file" to browse and choose the desired file. You can also click on the "View sample file" to go to the Dancing Numbers sample file. Then, set up the mapping of the file column related to QuickBooks fields. To review your file data on the preview screen, just click on "next," which shows your file data.


Which file types are supported by Dancing Numbers?

XLS, XLXS, etc., are supported file formats by Dancing Numbers.


What is the pricing range of the Dancing Numbers subscription Plan?

Dancing Numbers offers four varieties of plans. The most popular one is the basic plan and the Accountant basic, the Accountant pro, and Accountant Premium.


How can I contact the customer service of Dancing Numbers if any issue arises after purchasing?

We provide you support through different channels (Email/Chat/Phone) for your issues, doubts, and queries. We are always available to resolve your issues related to Sales, Technical Queries/Issues, and ON boarding questions in real-time. You can even get the benefits of anytime availability of Premium support for all your issues.


How can I Import Price Level List into QuickBooks Desktop through Dancing Numbers?

First, click the import button on the Home Screen. Then click "Select your file" from your system. Next, set up the mapping of the file column related to the QuickBooks field. Dancing Numbers template file does this automatically; you just need to download the Dancing Number Template file.

To review your file data on the preview screen, just click on "next," which shows your file data.


What are some of the features of Dancing Numbers to be used for QuickBooks Desktop?

Dancing Numbers is SaaS-based software that is easy to integrate with any QuickBooks account. With the help of this software, you can import, export, as well as erase lists and transactions from the Company files. Also, you can simplify and automate the process using Dancing Numbers which will help in saving time and increasing efficiency and productivity. Just fill in the data in the relevant fields and apply the appropriate features and it’s done.

Furthermore, using Dancing Numbers saves a lot of your time and money which you can otherwise invest in the growth and expansion of your business. It is free from any human errors, works automatically, and has a brilliant user-friendly interface and a lot more.


Why should do you change the Employee status instead of deleting them on QuickBooks?

If you are unable to see the option to terminate an employee on your list of active employees on the company payroll, this mostly implies that they have some history. Thus, if you change the employee status instead of deleting it on QuickBooks, the profile and pay records remain in your accounting database without any data loss in your tax payments.


Is it possible to use the Direct Connect option to sync bank transactions and other such details between Bank of America and QuickBooks?

Yes, absolutely. You can use the Direct Connect Option by enrolling for the Direct Connect service which will allow you access to the small business online banking option at bankofamerica.com. This feature allows you to share bills, payments, information, and much more.


Why should do you change the Employee status instead of deleting them on QuickBooks?

If you are unable to see the option to terminate an employee on your list of active employees on the company payroll, this mostly implies that they have some history. Thus, if you change the employee status instead of deleting it on QuickBooks, the profile and pay records remain in your accounting database without any data loss in your tax payments.


What are the various kinds of accounts you could access in QuickBooks?

QuickBooks allows you to access almost all types of accounts, including but not limited to savings account, checking account, credit card accounts, and money market accounts.

Get Support

Bulk import, export, and deletion can be performed with simply one-click. A simplified process ensures that you will be able to focus on the core work.

Worried about losing time with an error prone software? Our error free add-on enables you to focus on your work and boost productivity.

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