How to reclassify transactions in QuickBooks Online
Do you really think that your transactions in the Profit and Loss Account or in the Balance Sheet need to be reclassified? Are you really finding it difficult to reclassify the transactions one by one manually by checking the transactions in the bank statement? Here you can find it easy to reclassify the transactions Online in the QuickBooks service.
This article led you to achieve mastery over reclassifying the bank transactions in QuickBooks Online. Probably this is the best thing that you can learn to classify the bank feeds and entries downloaded from banks in QuickBooks easily. In this article, you will learn different features that will directly lead you to reclassify downloaded transactions in QuickBooks Online. QuickBooks apply Artificial Intelligence to its millions of users to make the reclassifying process easier.
There are four ways for reclassification of transactions. Here are these
1) You can change the category one after another.
2) You can create a journal.
3) You can also classify using batch.
4) In the Accountant’s Toolbox you can find the reclassify feature.
Now we will discuss each way in a brief
● Change the category One by one
⮚ First, you need to go into Reports
⮚ Then Go on to theProfit and Loss account
⮚ Change the date from This Year to Last Year
Click on Collapse Menu. Arrange the statement in descending Order. Select the expenses for example Miscellaneous Expense. Once you navigate to Miscellaneous expenses, all the miscellaneous expenses will appear on your screen.
⮚ Now choose the account from the drop-down list. For example, you select Insurance. If you wish to select another account then you can. You may also select Job Material Account or any other you want.
⮚ Now hit Save and Close.
In this way, you may reclassify the transaction in QuickBooks one by One.
● Reclassify using Journal Entries
⮚ Click on Journal Entries. The Journal entries screen will appear in your QuickBooks account.
⮚ For example, if you want to shift the expense from Job expenses to Cost to Good Sold. You need to set the date first. Then type the Job Expense and its amount under the credit column on the first row.
⮚ Then you need to debit the same amount by entering Cost to Good Sold in the second Row.
⮚ Now you need to go on to your Profit and Loss Statement. Here you may find the Job Expenses now shown as zero.
● Reclassify using Batch
It is one of the features of QuickBooks to automatically download the latest transactions when you get connected with bank and credit card accounts. A new transaction record will get generated if the entries you already made into QuickBooks were not matched with them. Here are some steps you need to follow to reclassify transactions in QuickBooks Online
1) You need to click on Banking on the left side of the Panel.
2) Enter the QuickBooks tab
3) Select the transactions that you need to re-classify by putting a checkmark on them.
4) Press the undo button.
5) Now click on to For Review Tab in order to modify the selected transaction.
6) Now go to theBatch Actions Drop-down list.
7) Click on Modify Selected.
8) Here you can change Payee, Class, Category, and Location.
9) Now at last press Apply to get the desired changes.
In QuickBooks, you can also reclassify multiple expenses at the same time. Here are some steps to follow:
1) Navigate to the Expenses from the left side of the panel.
2) In the Batch Actions drop-down list, you need to select the boxes of expenses that you want to re-categorize.
3) Now chooseto categorize selected.
4) Select the category you want to apply, and then click on to apply to make the desired changes.
● Reclassify using Account Toolbox
In this article, we will help you learn how to reclassify all the expenses at one time from the same vendor. You can follow these steps to categorize and classify the expenses that are manually added to QuickBooks.
● First, you need to Sign in to your QuickBooks Online Accounts, on the left side of the Panel click on to Expenses Tab.
● Choose Expenses for the selected Vendors.
● You need to set the date in the Date Column for the transactions you need to classify.
● Click on the Batch Action from the Dropdown list, then choose Categorize Selected.
● Click on to choose the category, and then click Apply.
We hope you find this article useful for understanding how you could reclassify the transactions in QuickBooks Online.