How to Categorize Transactions in QuickBooks Online (Step-by-Step)

About this video

The tutorial walks through categorizing transactions in QuickBooks Online in business view, starting at Transactions > Bank Transactions. It covers connecting a bank or credit card account by search and login, and manually uploading a file: the demo file has four columns — description, posted date, credit, and debit (which can be collapsed into one signed column) — then mapping columns, choosing the US date format, naming a new account by bank name plus last four digits, and setting its type to checking or credit card. In the categorize view he matches a $500 transaction to an existing open invoice, then adds vendors and categories: the Intuit QuickBooks fee prompts a workaround of copying the full category list into ChatGPT, constraining it to those options, and asking for its top three recommendations with confidence percentages and pros and cons — commissions and fees scores highest, but he chooses merchant account fees. Joe’s Landscaping goes to Repairs and Maintenance with 1099 tracking enabled; he creates a rule named in the format D for description, then vendor and category, with auto-confirm left off so matches still need review. Hope Mills flour is categorized as Cost of Goods Sold > Supplies and Materials with auto-confirm on, clearing four transactions at once. He adds receipts by forwarding invoices to a special QBO email address and by snapping a paper Hertz receipt in the QuickBooks mobile app, then matches them. Personal charges on the company card are bulk-edited to a new Owner’s Draw equity account. He finishes by spot-checking the Profit and Loss report and reconciling by entering the statement ending balance and date and driving the difference to zero.

Key takeaways

• Import transactions by connecting the bank or uploading a file with description, date, credit and debit columns, then verify column mapping and account type
• Always add a vendor alongside the category so you can report spend per vendor, and enable 1099 tracking for contractors who need one
• When a category is unclear, paste QuickBooks’ full category list into ChatGPT and ask for its top three constrained choices with confidence and pros/cons
• Create rules for repeat vendors using a descriptive naming format, and leave auto-confirm off unless you fully trust the match
• Attach receipts via the QBO forwarding email or the mobile app’s snap receipt, then verify work in Profit and Loss and reconcile to a zero difference

Episode details: published September 26, 2024 · 16:19 long. Summary written by Self Growth Videos from the episode itself. Business results and any income figures mentioned are Kevin Stratvert’s own claims, shared for education — they are not typical or guaranteed.

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