🧾 How to Categorize Transactions in QuickBooks Online
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| categorizing transactions in QuickBooks Online |
Step 1: Sign In
- Log in to your QuickBooks Online account.
- On your dashboard, navigate to the Banking / Transactions tab in the top menu.
Step 2: Go to the Bank Transactions Page
- Click Transactions → Bank transactions (or Banking).
- You’ll see all new (uncategorized) transactions from your connected bank account.
Step 3: Review Each Transaction
Each transaction shows:
- Date
- Description
- Amount
Review these to understand the purpose of the transaction — e.g., expense, sale, salary, etc.
Step 4: Choose the Correct Category
- Click on the Category or Match box beside the transaction.
- Examples:
- For an office expense → select Office Supplies
- For a customer payment → select Sales Income
- For a vendor payment → select Cost of Goods Sold or Expenses
Step 5: Add Description and Payee (if needed)
- In the Payee field, enter the name of the person or company involved.
- In the Memo / Description box, add a short note (e.g., “Purchase of printer ink”).
Step 6: Click “Add” or “Confirm”
- Once everything looks correct, click Add, Categorize, or Confirm.
- The transaction will be recorded in the correct ledger category.
Step 7: Create Rules (Optional but Helpful)
If you have similar recurring transactions, you can create Rules to automate categorization.
👉 Go to Transactions → Rules → New Rule.
QuickBooks will then automatically categorize future similar transactions.
✅ Tips
- Categorize at least once a week to keep your books accurate.
- If you categorize something incorrectly, you can fix it later using the Reclassify Transactions Tool (in Accountant view)
