Connecting your accounts via the QuickBooks Online bank feed is the fastest way to automate your accounting. However, importing your financial data is only the first step. You still need to manage, match, and categorize those bank transactions correctly to ensure accurate reporting.
Overview of the Banking tab
The section designated as "Banking" within the Banking center serves as a repository for all data pertaining to bank feeds that have been established by your clientele. At this juncture, clients are able to inspect and authorize transactions, as well as view all categorized or excluded transactions.
Accepting matches in the bank feed
How to Manage and Categorize Transactions in Your QuickBooks Bank Feed
The automated bank feed feature seamlessly imports your real-time bank data into QuickBooks Online. However, these transactions are not officially in your accounting ledger yet. You must review and process them using the three options below.
To start, go to the Banking tab in the Banking center and select the For review tab to see the transactions that have not been categorized yet.
1. Categorize New Transactions
If a downloaded transaction does not match an existing record, you must manually assign it to an account category. Select the proper vendor or customer, and choose the matching income or expense account from your Chart of Accounts.
2. Match Existing Transactions
QuickBooks will scan your ledger to find matching checks, invoices, or manual expenses that you have already entered. When it finds a suggested match, review the data and click Match in the Action column to merge the transaction and avoid duplicate entries.
To review details of a specific payment, select the link under the Added Or Matched column. Note that there’s an option here to unmatch the transaction if necessary.
How to Handle Multiple Potential Matches
When QuickBooks Online finds multiple potential matches for an entry, it flags them up. Follow these steps:
- Select View from the Action column.
- Review the suggested matches, including the date, the amount, and the description.
- Choose the right matching record, then select Match.
- To review more transactions, return to the For review tab.
How to Accept Transactions in Batches
It’s also possible to accept transactions in batches to save time. Follow these steps:
- Select the All transactions dropdown, then select Recognized to filter transactions that have matches.
- Check the boxes next to the transactions you want to accept.
- From the action bar, select Accept.
3. Transfer Funds Between Accounts
Use the Transfer option when moving money between two connected accounts, such as paying a corporate credit card bill from your main business checking account. This keeps your balance sheet clean. Once completed, select the Categorized tab to see that it’s been successfully matched.
