How to Reclassify Transactions in QuickBooks

How to reclassify transactions in QuickBooks

QuickBooks Desktop software helps you managing the finances of various organisations and companies. The software has enormous features, which is why it has always been on the top since the time of its launch. To use the Reclassify Transactions tool in the Accountant, Enterprise, or Accountant Enterprise QuickBooks Desktop. Make it easy for tax purposes to get your client’s books ready. 

To find and correct transactions assigned to wrong accounts or classes in your client’s books, use the Reclassify Transactions tool. Transactions can be reclassified one by one or all at once.

Select the fiscal year that you would like to review

Set the fiscal year or date range of the transactions you want to check if you have not yet done so.

  • Select Client Data Review from the Accountant menu.
  • Select Review of Client Data.
  • Select the date range of the transactions you would like to review in the Review Date Range section.
  • Choose Accrual or Cash in the Review Basis section.
  • Select Review Modify.
  • Find Reclassifying Transactions in the Account Balances section. Select the drop-down Status ⁇ and then set it to In Progress.
  • Close select.

Review the purchases

 

Now you can begin reviewing the transactions of your client.

  • Select Client Data Review from the Accountant menu.
  • Select Transactions to Reclassify.
  • Select the View ⁇ drop-down button in the Accounts section. Then, pick the type of account.
  • To display transactions in the right pane, select an account.
  • Select a name in the Transactions section of the Name ⁇ drop-down.
  • Select what transactions you want to review from the Show Transactions drop-down.
  • Review the transaction list.

Please note that you can not reclassify transactions, such as invoices and bills, that use accounts payable or accounts receivable. The class or account of any transactions associated with other transactions can also not be changed.

Transactions Reclassify

 

You can transfer them to their proper account or class if you need to correct transactions. You may also be reclassified at the same time by account and class.

  • Pick anything or select a transaction.
  • Click the Checkbox for the user to be reclassified by account.
  • Choose the ⁇ drop-down arrow next to Account To. Then find the account where you want the transactions to be transferred.
  • Pick the Class check box that you want to reclassify by class.
  • Choose the ⁇ drop-down arrow next to Class A. Then, for the transactions, pick a new class.
  • Choose Reclassify.

You don’t have to edit them one at a time at QuickBooks Online Accountant. To save time and make the same adjustment in several transactions at once, use the reclassify function. But before you move ahead and move all these transactions, there are a few transactions that you cannot move, and all these transactions are as follows: 

  • The payment account (bank or credit card) can’t be adjusted for expenses.
  • You can’t change the account or class for inventory changes because they are related to your inventory shrinkage and asset accounts.
  • You may change the class of objects (products or services) on them for invoices, cash memos, cheques, or bills. You can’t modify the accounts, though.
  • You can adjust the expense account for billable expenses but not the income account for similar sales transactions.
  • On the Payroll menu, you can monitor your payroll transactions.

Find the transactions to be Reclassify

 

You can skip this step if you know what transactions you need to alter. You can go through the QuickBooks Online business of your client and run a report filter for unique transactions and dates.

  • Open QuickBooks Online Company for your customer.
  • Select Accountant Software, and then Options for Reporting.
  • Set the report dates.

Reclassify and movement of transactions

 

To transfer transactions to similar accounts or alter their classes, use the reclassify feature. Statements, grades, and sales tax codes may be reclassified as well.

  • Open QuickBooks Online Company for your customer.
  • Select Accountant Software, and then select Transaction Reclassification.
  • Select Benefit and Loss from the Account Categories drop-down menu to see the accounts for sales and expenditures. Or, to see your asset, liability, and equity accounts, pick the Balance Sheet.
  • In the Account list, pick the account that contains the transactions you want to alter.
  • Use these customer/suppliers, sort, class, and edit filters to filter the list.

Please note that to see both paid and unpaid transactions, you can also pick Accrual or Cash to see only paid transactions.

  • Select Check for Transactions.
  • For each transaction, you want to alter, click the checkbox.

Please make sure there’s a buyer or supplier before you transfer transactions to Accounts Receivable or Accounts payable. Don’t leave a blank on these lands.

  • Choose Reclassify.
  • Choose a new account from the Change account to a drop-down or a new class from the Change class to drop-down.
  • Select Submit when you’re ready.

Please note that you can also use the QuickBooks Online Accountant reclassification tool for your company’s transactions. Select Accountant Tools and Reclassify Transactions when you’re on your firm’s page.

To End With

To conclude, QuickBooks Desktop software helps you manage the accounting or finance of a particular organisation. This blog is here to make you understand the reclassify tool that can help you moving your transactions. I hope that this blog helps you understand the tool and you can use it to the benefit of your organisation 

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Cpadesk
Cpadesk

CpaDesk Is An Online Accounting Forum/ Community That Brings Accounting Advisors, Students, And Those Who Are Looking For Knowledge And Information.

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