QBO Categorization #1
Vendor: Shell
Amount: $37.50
What is Fuel & Gas Expense
How can you see the transaction history?
You can see the categorization history in the drop down carrot to the right of "post" in the same spot you can exclude one transaction at a time. There must be a payee name to see the categorization history
Where can you check to see the last time the bank feed was updated to ensure you’re up to date on categorization.
The bank tiles in the bank feed.
Vendor: Apple
Amount: $2.99
Office Expense
Software & Apps
Subscriptions
Vendor: American Electric Power (AEP)
Amount $350.00
Utilities Expense
The transactions that still need to be categorized in QBO can be found in what tab of the bank feed?
"For Review"
There are a few settings to turn on in the bank feed to make you categorization as efficient as possible. These settings can be found in the bank feed gear icon. Name one of the settings?
Turn on grouping
Copy bank detail to memo
Show Bank Details
Do we use a Clearing Account for payroll?
No, clearing accounts should be avoided, especially for payroll. If a suspense account is needed, it is best practice to use Payroll Expense and then you can use a journal entry to allocate wages and taxes.
Vendor: Buc-ee's
Amount: $12.47
Meals Expense
What is the proper workflow if you find a duplicate transaction?
Bank Feed -> Categorized -> Undo -> Exclude.
We NEVER delete anything. Instead use the undo feature and exclude if you have confirmed it is a duplicate.
Vendor: Staples
Item Purchased: Computer
Amount $2500.00
*Confirmed business expense
Fixed Asset
Vendor: Microsoft
Office Expense
Software & Apps
Subscriptions
Once you turn on the proper settings in the bank feed, what will you click to sort and group transactions based on the bank description?
"Bank Detail"
When handling credit card payments in QBO, this process is preferred to avoid duplicate entries instead of manually adding the payment.
Matching (as opposed to adding)
Vendor: BP
Amount: $87.50
Fuel & Gas Expense
Vendor: IRS
Amount: $3,125.50
Tax Election: Sole Proprietor, 1040
Personal Income Tax payments should be categorized to Equity (Owner's Draw)
Vendor: The Home Depot
Amount: $127.66
Items Puchased: Small Tools for Business Construction
Supplies & Materials
Cost of Goods Sold: Supplies & Materials
*depending on COA set up
Vendor: Apple
Amount: $1950.00
Item purchased: Printer paper, new key pad, and ink.
*Confirmed business expense
Office Supplies
Small Tools & Equipment
*No prior categorization history found.
Uncategorized Expense
This financial statement summarizes revenues, costs, and expenses, showing whether a business is profitable over a specific period, relying heavily on accurate categorization.
Profit and Loss Statement
If you are unsure how to categorize a transaction, the very first step in the workflow is to check what?
Categorization History
Vendor: Flying J
Amount: $100.00
Fuel & Gas Expense
Vendor: Exxon Mobile
Amount: $4.99
Meals
What is the new feature that can help to provide more information on the vendor and also recommend categories?
Intuit Assist
*Do not just assume Intuit Assist is correct, you must do the research to verify.
Vendor: Google Ads
Advertising & Marketing