Technical Tuesday is back! Today we do a refresher on reviewing transactions in the banking feed on QuickBooks Online and discuss a new feature that has been added to the feed to make your life easier! The banking feed is the core of QuickBooks Online. The health of your books and accuracy of your reports all stem from the actions taken here. We discuss the difference between proactive and reactive bookkeeping and how the new feature of categorization history can save you time and frustration.
Proactive bookkeeping is exactly what is sounds like. You enter the transaction in the system before it has cleared the bank and the transaction makes it way into your banking feed. When this happens, the system finds and suggest a match (or matches if multiple transactions for the same amount) making it very easy to navigate and clear the banking feed. Reactive bookkeeping is not entering into the system after you actually complete the transaction and waiting for it to come into the banking feed after it clears the bank. A great example of this would be using your credit card at the gas station and then not entering it as a credit card expense proactively.
The system is smart and based on past transactions will suggest a category for the transaction and if the bank detail of the vendor matches any vendor already in your system it will pre-populate that field. If you are unsure of what category the transaction should be applied to there is now a button labeled Categorization History. It brings up a box that shows all transactions associated with this vendor for the last 12 months and where those transactions have been categorized. From there you can assign the category or even create a rule to use moving forward. This small new addition to the system will save you a significant amount of time in the long run. Every few seconds you save today adds up!
Send in a voice message: https://anchor.fm/bcbo/message