QuickBooks Online

I’m going to show you four ways to reclassify transactions in QuickBooks Online. Number one, change, one by one, etc you probably do that already, so I’ll show you that real quick. Number two, create a journal entry. That means I don’t have to mess with each one but one by one and just makes one adjustment done. Number three, my favorite, you’re gonna love this one. Trust me, it’s worth reading the whole blog for it. Change the categories in batch and that’s for end-users, or accountants anyone. The complete access to QuickBooks and gauge knowledge on how to zero out retained earnings in QuickBooks. 

Reclassify feature for accountants

And then the last one will be the reclassify feature for accountants, only so the last one will be for accountants only. Let’s jump right in. So we’re in QuickBooks Online, and let me add some context so let’s say for example I’m going into the report section, and I’m going into profit and loss. And I’m looking at my profit and loss report, and there are some categories there that don’t seem right. Maybe some duplicate accounts or maybe they’re in the wrong category so one of the things you could do is you can click on the total amounts of whichever one you’re looking at, like for example we got this one here called miscellaneous expense for 2900 bucks I can just click on that 2900 bucks, and it will take me to a detailed report that shows me all the transactions that were categorized possibly in the wrong category, so you can click on each one, one by one, you can click on each one. 

 

Expense category

And simply just change the account the expense category whatever you said that you’re doing so you can just change it easily simply by just going through your list, selecting the right category and clicking on saving and close so that’s what I meant by changing by one by one, you certainly can do that. Not nothing wrong with doing that, I mean that’s totally legal and can be doable. The second option you can do is, I’m gonna go back to my profit and loss real quick. Let’s say for example that for, let’s just look at the report that we have here on the screen. Let’s say that for whatever reason. This category here called advertising 74 points 86. And there’s a whole bunch of transactions in there, assuming there are thousands of dollars in there, that’s in the wrong category that should be under job expenses, 

So I could simply just make a journal entry so for E.g I can take the 7486 away from advertising and then I can do a move into job expenses so let’s do that. So I’m going to click on the, on the query button on the top right, then I’m going to click on journal entry but I want to do a Ctrl-Click Ctrl-Click opens up the menu and then I can do a new tab. That way I’m not getting out of my report I kind of want to stay on my report so I’m gonna switch over to the tab on the top part of my giant tree, and then go ahead and do it so let’s say that was going to be advertising. And then when I get rid of it. It’s an expensive debit so I’m gonna get rid of it by putting it here on the credit side, 74 point 86 is that when it works, let me just double-check. 74 point 86, and then I’m going to move that into job expenses, and then I just simply just click save and Save or Save and close a menu, whatever, go back into my report 

Run Report

Then click on Run report because I want to refresh it, and then we’re going to go down here and we’re no longer going to see advertising or we’re going to see $1 amount of zero so we effectively classified the entire category, without paying attention to the details transaction by a transaction if I click on that zero, I can still get the history of anything that was put in there, but then I see the journal entry, taking it out so that’s technically a way to reclassify, not my favorite, but it is truly a way of doing it and, and as accountants, we end up doing that quite a bit. Now the third one I’m going to show you which is the one that I said, will be worth it will be changing the categories in batch and this is available to any QuickBooks users, it could be an accountant or a regular end user. And this is a lesser-known feature it’s been there for a while but a lot of people just don’t use it. So I click on the expenses button on the left side in the navigation bar so I’m going to click on expenses. specifications for easy reference from within QuickBooks. Click Here for information on how to print w2