The Truth About Bookkeeping Automation That May Surprise You

Did you know that the hardest part of bookkeeping – categorizing transactions – can be 90% automated?

Categorizing transactions is where the bulk of the work is in bookkeeping. But in Quickbooks Online there’s a handy tool called Bank Rules, which can automate this process.

When your transactions are imported into QBO (through bank feeds, ideally), they land on the Banking page. At the top of the Banking page, there’s a tab for Bank Rules. This is where you can create rules for specific types of recurring transactions. Within the rule, you can set the payee, which account it comes into / goes out of, and the account you want it categorized into. You can even set it to automatically accept these transactions so you never have to touch them.

This is perfect for your recurring transaction, such as subscriptions, contractors, Facebook ads, transfers between banks, credit card processing fees, sales, etc.

It also ensures that you consistently categorize these transactions in the same way from month-to-month, which is very important!

If you set up bank rules for all your recurring transactions, then the only manual categorizing you need to do is for one-time payments that come through. For online businesses, the majority of their transactions are recurring, so Bank Rules are a huge time saver!

You can always check your categorization by reviewing your transactions in the bank register and/or going through the Profit & Loss report.

Want to learn more categorization hacks? My new course Automatic Bookkeeping will be teaching accurate month-end bookkeeping in 20 minutes or less. Get on the waitlist here.

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