How to Categorize and Match Online Bank Transactions in QuickBooks Online

Once you connect your credit card accounts to your bank, QuickBooks automatically downloads the latest transaction records. If transactions are already entered in QuickBooks, it matches them with the latest data. If no match is found, QuickBooks creates a new transaction, requiring user approval.

QuickBooks also matches transactions with payments automatically, helping save time.

How to Categorize and Match Online Bank Transactions in QuickBooks Online

There are a few steps to Categorize Online Bank Transactions and match online bank transactions in QuickBooks. Check out the steps to understand the procedure.

Step 1: You Need to Download the Latest Bank and Credit Card Transaction

When you use QuickBooks, You will find that it downloads the latest transactions every night at 10:00 PM PT.

Sometimes it can take a little while, but you can also manually update the accounts any time of the day to receive the latest available transactions. To get the transaction, you need to:

Go to the bookkeeping tab, then click on the transaction tab or choose the bank transactions and click on banking. Now choose the update option.

This process helps you to update all your bank credit card accounts.

Step 2: Review and Categorize Downloaded Transactions

In this step, you can review and categorize the transactions that you have downloaded now. You need to go to the ‘Bookkeeping‘ tab, then click on transactions, and choose ‘Bank Transactions‘, or you can go to the ‘Banking‘ tab.

Now choose the title for the account you want to review and click on the ‘For Review‘ tab to start the review process.

Once you have contacted the process, QuickBooks send these downloaded transactions to the ‘For Review‘ tab, and you can review every transaction one by one.

To accelerate the review process, You can develop a bank rule that can automatically categorize the transactions for you.

Step 3: Review Matched or Added Transactions

Once you have completed matching the transactions and are adding Downloaded Transactions, everything is recorded in QuickBooks.

Whenever you want, you can review your work and ensure that everything is accurate in the categorized and reviewed tab.

It is best to check after completing the review process; for that, You need to go to the booking tab then, click on transactions, and select bank transactions, or you can click on the banking tab.

Now you can choose the title of the account that you want to review.

Next, You can go to the categorized or reviewed tab and choose the link in the added are matched column to review the transaction.

How to Match with an Existing Transactions?

Since you have already learned to match transactions, you must also learn how QuickBooks match an existing transaction. Checkout the below steps to ensure that the matches are accurate:

• Go to the Action column and choose a downloaded transaction with the match option.
• Take note of the date command description, payee, and amount spent or received.
• You need to select the downloaded transaction to increase the view.
• You need to review the matching records in QuickBooks.
• Now select the link next to every match and get more information.
• You need to make sure that it is the right match. In certain situations, you need to review that deposit payment method and bank account field on forms for the pre-existing transaction in QuickBooks.
• Check if the matches are accurate, then close the open transaction.
• Now click on the match button to end the process.

How to Add a New Transaction?

If QuickBooks hasn’t found a matching transaction 10, it will create a new transaction for you. Now you need to confirm that there is no match and allow QuickBooks to add in a new transaction. The below steps show how to add a new transaction in QuickBooks.

• Go to the action tab, Choose any downloaded transaction, and click on the add option.
• Next, You need to select the transaction to increase the view.
• You need to review the recommended category, as QuickBooks wants to categorize every transaction into an account.
• Now charge the vendor or the customer if you 12. If you have added this transaction to QuickBooks, then you can select the find match option and review the list of matches. Now, if you find any suitable match, then choose one.
• Now select the add option.

How to View and Review Multiple Matches?

QuickBooks sometimes find more than one potential match; in that case, you need to select the accurate one. The following steps can give you an insight into how to choose the right one when there are multiple matches.

• Go to the action tab, select the downloaded transaction and click on the view option.
• You need to review the matching records in QuickBooks. You will find the possible matching transactions.
• You must click the link next to all the matches to get more information.
• You have to ensure that there is one accurate match among all these matches. In this kind of a situation, You need to review the payment method Deposit and Bank Account fields on forms of the pre-existing transactions in QuickBooks.
• Now compare the potential matches and find the right one. Now close all the other open transactions.
• Once you choose the accurate match, You need to click on the match option.

How do You Set up Bank Rules to Categorize Online Banking Transactions in QuickBooks Online?

If you have downloaded transactions from your bank, you need to categorize them correctly. Setting up bank rules helps automate this process, ensuring transactions are placed in the right accounts. Follow the steps below to set up bank rules efficiently.

Step 1: Create a Bank Rule

• You need to click on the ‘Bookkeeping or Banking Tab‘ and choose ‘Rules‘.
• Now click on ‘New Rule‘.
• Add a name in the field ‘What do You want to Call this Rule?‘
• There is a drop-down arrow in the ‘Apply this to Transactions that are‘ option, and choose the ‘Money in‘ or ‘Money out‘ option.
• Now select ‘Bank or Credit Card Account‘ from the ‘in‘ drop-down arrow.
• Now, You can set the rule conditions. You have the opportunity to set a single rule that has 5 conditions. Now click on ‘Set and Include‘ the following and choose ‘+ Add a Condition‘.
• Now, You need to move to the conditions field and mention whether the rule is applicable to Description, Bank Text, or Amount. Now click on contains, doesn’t contain, or is exactly and decide How QuickBooks is going to Apply these Rules.
• Choose the setting for the rule and choose a Category, Transaction type, Payee, and tags to apply.
• Choose the save option.

Step 2: Review Recognized Transactions

You can view the downloaded transactions doctor recognized by a bank; to review the recognized transactions, you need to follow the below points;

Go to the ‘For Review‘ tab and choose recognized options from the ‘All Transactions‘ drop-down arrow. Here you can find all the transactions recognized by any bank room. Moreover, You can see a rule option added to the transaction. If everything is accurate, Click on add to move the transactions directly to the accounts in QuickBooks. You can also choose and review it before moving to the QuickBooks account.

Step 3: Set up the Auto-add Feature

If you know how to create targeted rules for specific transactions, then it can automatically accept them into your books from the bank transactions tab. Use the auto-add feature you need to follow the below points.

• Follow the steps for creating a ‘New Bank Rule‘.
• Choose ‘Automatically Confirm Transactions‘ this rule applies to in the rules window.
• Choose the ‘Save‘ option.

This article highlights the best QuickBooks version for businesses that need to categorize and match bank transactions. It also provides steps to match and categorize transactions manually and automatically.

If you are unsure about the versions, seeking professional help can be useful. Experts can explain the features of each version and how to use them based on your needs.

For more details on the best QuickBooks version for managing bank transactions, contact the Dancing Numbers team via LIVE CHAT.

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