Setting Up Banking Rules and Transaction Reviewing in QBO

Setting Up Banking Rules and Transaction Reviewing in QBO

| 2 min read

One of the most convenient, time-saving features of QuickBooks Online is downloading transactions automatically and setting up banking rules.

Business owners utilize Banking Rules once all banking transactions are downloaded into QBO. The software designates the category based on the rules created. This option when utilized helps to prevent mistakes in categorizing while allowing the business owner to personalize the software.

Bank Rules

Every bank transaction that comes over from the bank needs to be reviewed. With bank rules, this becomes a speedy process.

The more you use it, QBO learns how to expand on your provided information. For instance, QBO knows to add a payee to a certain transaction that is assigned a rule. To set up the bank rules:

  1. Click on 'Banking" in the left-hand menu of QBO. From the dropdown, choose 'Rules'.
  2. Next, click on the green oval button in the top right of the screen, labeled 'New Rule'.
  3. Enter a name for this rule in the box that says 'What do you want to call this rule?'.
  4. Choose the 'Money out' or 'Money in' and the bank account/credit card account to which the rule will apply.
  5. Under 'and include the following:' choose 'All' or choose 'Description', 'Bank text', or 'Amount' from the first dropdown, and then 'Contains', 'Doesn't contain', or 'Is exactly' and use the next box to add text for this choice.
  6. You can then test the rule.
  7. Next, choose where you want it assigned or excluded. QBO allows you to pick 'Transaction type', 'Category', 'Payee', and 'Tags'.
  8. To automatically confirm transactions this rule applies to, click the box beside the words 'Auto-add'.
  9. Choose 'Save'.

Reviewing transactions in QBO

QBO will automatically save the associated transactions in the 'For Review' tab based on your created rules. Auto-add transactions will be transferred directly to the categorized screen.

Reviewing Transactions

Making a habit of reviewing transactions daily means you have less to do when it is time to reconcile your accounts once the month is over.

But with QBO's quick reviewing techniques, even procrastinators can do a quick review at the end of the month. To review transactions:

  1. Hover over 'Banking' and choose the dropdown 'Banking'.
  2. Ensure you have the correct account by clicking on the box for the account you wish to review.
  3. The screen will show three options: 'For review', 'Categorized', and 'Excluded'.
  4. First, choose the 'For review' option.
  5. Here you will see a list of all recent transactions. Go through and check each transaction to ensure it is in the correct category. Make the necessary changes by clicking on the transaction line. QBO offers 'Categorize', 'Find match', 'Record as transfer', or 'Record as credit card payment'.
  6. Once you have chosen the correct option, use the action button to send the transaction to the categorized screen.
  7. To view categorized or excluded transactions, click on the button for those items. Any auto-add ruled transactions will automatically go to the 'Categorized' screen and are now ready to be reconciled.
  8. If you see a transaction that should go under a bank rule, you can easily do this from the review screen. Choose the transaction and click on the 'Create a rule' link and follow the same prompts above for setting up a bank rule.
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