QuickBooks Online Tutorial: How to Categorize Bank and Credit Card Transactions Efficiently
Managing your business finances just got a whole lot easier with QuickBooks Online. In this video, we’re walking you through how to download, review, and categorize your bank and credit card transactions step-by-step—whether you’re just getting started or looking to clean up your bookkeeping workflow.
Here’s what we’ll cover:
- Downloading your latest transactions
- Reviewing and categorizing them
- Splitting transactions and adding details
- Confirming everything and staying organized
To get started, log into your QuickBooks Online account.
Click on Transactions, then go to Bank Transactions.
From there, click the Update button to pull in the latest data from your connected bank and credit card accounts.
Once downloaded, QuickBooks sends them to the For Review tab. This is where you’ll do most of the work.
Click the account you want to manage and head over to the For Review section.
Each transaction will show a suggested category based on past behavior.
If QuickBooks marks a transaction as Add, it means it thinks it knows the category.
If the suggestion looks good, click Add to confirm.
Want to change it? Just use the dropdown to pick another category—or click +Add New if it’s something custom.
For transactions labeled Review, QuickBooks isn’t sure how to categorize it.
Open the transaction, assign the correct category, and click Confirm.
When categorizing, think about whether the transaction is money in or money out.
Income includes:
• Sales
• Customer payments
• Refunds
• Asset sales
• Loans received
• Investments made
Expenses could be for:
• Office supplies
• Meals
• Payroll
• Taxes
• Equipment or other fixed assets
You can dig deeper if needed.
Want to split a transaction? Maybe one payment covered multiple things?
Click Split, choose categories, and assign amounts.
You can also mark transactions as Billable if you need to charge a customer for that expense later.
Need more clarity? Turn on Bank Details in your settings to see who the money came from or went to.
Once everything looks right, don’t forget to hit Confirm.
And just like that, your books are up to date!
That’s a quick overview of how to manage your bank and credit card transactions in QuickBooks Online.
Stay on top of your finances, make tax time easier, and keep your books accurate—one review at a time.
