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Bank feeds and bank rules in QuickBooks Online
Most of a US bookkeeper's week in QuickBooks Online (QBO) is spent in the bank feed: reviewing the lines that come in from the client's bank and credit card accounts and putting each one in the right place. Bank rules make the repeating lines faster. Here is how both work, in plain English.
Updated · By the Talenta Pros team
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In short
A bank feed brings transactions from a connected bank or credit card account into QuickBooks Online. Each line waits in the For review tab until you match it to a transaction already in QBO, or categorize it as a new expense, deposit or transfer. Bank rules tell QBO how to categorize lines that repeat, such as the same phone bill every month. Rules save time, but you still review what they post, then reconcile the account against the statement.
What a bank feed is
When a client connects a bank or credit card account to QuickBooks Online, the bank sends its transactions to QBO. They do not go straight into the books. They wait on the bank transactions screen, usually in three tabs:
- For review: new lines that still need a decision.
- Categorized (called Reviewed in some versions): lines you have already added, matched or transferred. You can undo them from here.
- Excluded: lines you chose to keep out of the books.
If the connection did not pull older months, for example in a catch-up project, you can download a CSV file from the bank and upload it to QBO so those lines also appear for review. Intuit renames tabs and buttons from time to time, so the labels on your screen may differ slightly.
How to review the bank feed
- Open the bank transactions screen (under Banking or Transactions) and pick the account at the top, such as Checking.
- Work through For review from the oldest date to the newest.
- Look at what QBO suggests. If it shows a possible match, check that the date, amount and payee belong to the same transaction before you accept it.
- Match when the transaction is already in QBO: a customer payment, a bill payment, a check or a deposit you recorded earlier.
- Categorize (add or post) when it is new: choose the payee and the account from the chart of accounts, such as Office Supplies or Bank Charges. Add the class or location if the client tracks them.
- Record a transfer when money moves between two of the client's own accounts, such as savings to checking or a credit card payment.
- Split a line that covers more than one account, such as one card charge for both supplies and meals.
- Check the Categorized tab before you finish, then reconcile the account against the statement. See how to reconcile in QuickBooks Online.
Match vs categorize: the choice that prevents duplicates
The most common bank-feed mistake is adding a line as new when it should have been matched. If an invoice payment was already recorded with Receive payment and you then add the same bank deposit as new income, the income is counted twice and the invoice can still look unpaid.
- Match if the transaction already exists in QBO. One bank deposit can be matched to several customer payments: a $1,500 deposit made of a $900 and a $600 payment is matched to both.
- Categorize only if nothing in QBO records it yet.
- Apps that post to QBO (payment or point-of-sale apps) often record sales and payouts already. Match the payout in the bank feed; do not add it again.
What bank rules are and how to create one
A bank rule tells QBO what to do with bank lines that meet conditions you set, for example: money out, description contains the phone company's name, so categorize it to Utilities: Telephone with that vendor as payee. Rules are kept on the Rules page of the banking area, which you can also open from the bank transactions screen.
- Create a new rule and give it a clear name, such as "Phone bill – monthly".
- Choose money in or money out and the bank accounts it applies to.
- Set the conditions: bank text or description contains or is exactly certain words, and, if useful, an amount condition. Choose whether all conditions or any condition must be true.
- Set what to assign: the transaction type, payee, category account and, if the client uses them, class and location. You can split by percentage or amount.
- Decide on automatic confirmation. A rule can either suggest the category for you to approve, or confirm (auto-add) the line without review. Leave automatic confirmation off until you trust the rule.
- Save, then check the order. When more than one rule fits a line, the rule higher in the list wins, so put specific rules above general ones.
Common bank-feed mistakes and how to fix them
- A rule posted lines to the wrong account. Fix the rule first so it stops, then undo the affected lines from the Categorized tab and categorize them again.
- Transfers recorded as income or expenses. Money moved from savings to checking is not income, and a credit card payment is not an expense. Record or match them as transfers so the Profit & Loss is not inflated.
- Excluding real bank activity. Exclude only lines that should not be in the books, such as a true duplicate or a line already recorded another way. If the client paid a personal cost from the business account, record it (usually to an owner's draw account, as the client's accountant prefers) rather than excluding it, or the account will not reconcile.
- Lines left in Uncategorized Income or Uncategorized Expense. Clean these up before month-end; ask the client what they were rather than guessing.
- Rules set to auto-confirm too early. A broad rule such as "description contains Amazon" can push personal and business purchases into one account. Use specific conditions and review first.
Where the bank feed fits in month-end close
US-process teams usually clear the bank feed every week, so month-end is quick. The usual month-end order is: clear the bank feed, reconcile every bank and credit card account, review AR and AP aging, post adjustments, review the reports, then close the period. Many teams write the client's bank rules and categorization choices into a short SOP so anyone on the team handles the feed the same way. Interviewers often ask about Match vs Add and bank rules; see more in QuickBooks Online interview questions, and if you are new to the software, start with What is QuickBooks Online?
Learn and practise bank feeds with Talenta Pros
The Banking & Reconciliation module of the Talenta Pros course has 7 lessons: bank feeds; categorize or match; reconciling an account; transfers, loans and owner money; reconciling credit cards and loan accounts; fixing reconciliation discrepancies; and uncategorized items and bank-feed cleanup. You practise in Talenta Practice Books, a QuickBooks-style practice company inside the portal. Lessons are in English, Hindi and Telugu. See the full curriculum.
| Plan | Price (one-time, + GST) | Lesson languages | Access |
|---|---|---|---|
| Best Pros | ₹999 | English | 1 year |
| Successful Pros | ₹1,499 launch offer (regular ₹1,999) | English + Hindi or Telugu | 1 year |
| Advanced Pros | ₹2,999 | All languages | Lifetime |
All prices exclude 18% GST. Try Module 1 free for 7 days. Talenta Pros is an independent training provider, not affiliated with Intuit. It provides training and job support; it does not guarantee or offer jobs.
Common questions
What is the difference between a bank feed and a reconciliation?
The bank feed brings bank lines into QuickBooks Online so you can record them. Reconciliation is the monthly check that the recorded transactions agree with the bank statement's ending balance. You clear the bank feed first, then reconcile.
Should I match or add a bank transaction in QuickBooks Online?
Match it if the transaction is already recorded in QBO, such as a customer payment or a bill payment. Add (categorize) it only if nothing in QBO records it yet. Adding a line that should be matched creates a duplicate.
Do bank rules post transactions automatically?
Only if you turn on automatic confirmation for that rule. Otherwise the rule fills in the payee and category, and the line waits in For review for you to approve it.
What should I do if a bank rule categorized transactions wrongly?
Edit the rule so it stops making the mistake, then undo the affected lines from the Categorized (Reviewed) tab and categorize them correctly.
When should I exclude a bank transaction?
Only when it should not be in the books at all, such as a true duplicate or a line already recorded another way. Do not exclude real business or personal activity in the business account, or the account will not reconcile.
Can I learn QuickBooks bank feeds in Telugu or Hindi?
Yes. Talenta Pros lessons, including the Banking & Reconciliation module, are available in English, Hindi and Telugu, with Tamil, Malayalam and Kannada coming soon.
More free guides
- How to reconcile in QuickBooks Online: Reconcile bank, credit card and loan accounts step by step, and fix a non-zero difference.
- What is QuickBooks Online?: What QBO does, who uses it, key terms and how it differs from QuickBooks Desktop.
- QuickBooks Online tips: Short, practical QBO tips for beginners, added regularly.
- 1099 vs W-2 explained: Contractor vs employee, Forms 1099-NEC and W-2, deadlines and how QBO handles both.
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