How to Change Deposits to Expenses in QuickBooks When Data Was Downloaded

Overview

When you download bank transactions into QuickBooks Online, some transactions may be categorized incorrectly. If a transaction was imported as a deposit but should actually be recorded as an expense, you can change its category before adding it to your books.

Steps to Reclassify a Transaction

1. Go to Banking -- Click Transactions on the left sidebar, then select Banking (or Bank Transactions).

2. Find the transaction -- In the Banking and Credit Cards window, locate the downloaded transaction you need to reclassify. It will appear in the For Review tab.

3. Click on the transaction -- Click the transaction row to expand it and see its details.

4. Change the category -- Click the Category dropdown and select an appropriate Expense account instead of the income or deposit account currently assigned.

5. Choose an action -- Select Add to add it as a new transaction, Find Match if it matches an existing transaction in QuickBooks, or Transfer if it represents a transfer between accounts.

6. Confirm -- Click the corresponding button to finalize the change.

Tips

• Review downloaded transactions regularly to catch miscategorized items before they affect your reports.
• If a transaction has already been added to your books with the wrong category, you can edit it by finding it in your transaction list and changing the account.
• Setting up bank rules can help QuickBooks automatically categorize recurring transactions correctly in the future, reducing the need for manual corrections.