reclassify transactions in quickbooks desktop

You can use the reclassify transactions tool available in QuickBooks Desktop Accountant, Accountant Enterprise, and Enterprise to get the task done. By easily reclassifying transactions, you can set your clients book for tax purposes. All the wrong accounts or classes associated with a transaction can be quickly discovered and corrected using this tool.

Reclassify Transactions in QuickBooks Desktop

reclassify or move multiple transactions at once with quickbooks
Screenshot – Reclassify Transactions

Step #1: Choose the Fiscal Year

Selecting a fiscal year is important for reclassifying transactions. Until you select a fiscal year, you won’t be able to use the tool to check for any erroneous transactions.

To select a fiscal year in which you want to reclassify transactions, follow the steps provided below:

  1. Go to the Accountant menu
  2. Click on Client Data Review.
  3. Select Client Data Review.
  4. Go to the Review Date Range section.
  5. Choose a date range that includes the transactions you want to review.
  6. Go to the Review Basis section.
  7. Select between Accrual or Cash.
  8. Click on Modify Review.
  9. Go to the Account Balances section.
  10. Once you’ve found Reclassify Transactions, click on the drop down menu titled Status and select In Progress.
  11. Click on Close.

Read More: How to Import Bank Transactions into QuickBooks Desktop?

Step #2: Review Recorded Transactions

Here how you can use this tool to reclassify transactions in QuickBooks.

  1. Go to the Accountant menu.
  2. Click on Client Data Review.
  3. Click on Reclassify Transactions.
  4. In the Accounts section, click on the View option.
  5. In the dropdown menu, select the account type.
  6. Select an account to view the transactions in the right pane.
  7. Go to the Transactions section, and Click on the Name drop-down. Select an appropriate name.
  8. Now, go to the Show transactions drop-down.
  9. Click on the transactions to review.
  10. Go through the transactions and check for any anomaly or error.

Note: Accounts using accounts payable contain transactions that cannot be reclassified. These transactions include invoices and bills. Further, you cannot change the account or class of any transaction that is linked to another transaction.

Read More: How to Memorizing Transactions in QuickBooks?

Step #3: Reclassify the Transactions

Once you’ve reviewed all the transactions in a given fiscal year, you can select and reclassify transactions that are incorrectly associated. This is vital for preparing the books of your client for tax purposes.

Here are the steps to reclassify transactions in QuickBooks:

  1. Click on a transaction to select it. If you want to select all the transactions, then click on Select All.
  2. Mark checkbox against the transactions to reclassify by account.
  3. Click on the drop down menu against the Account to option. Find the account to move the transaction to.
  4. Mark the checkbox against Class to reclassify by class.
  5. Now click on the drop down menu against the Class to option. Select the class to which you move all the selected transactions.
  6. Click on Reclassify.

Read More: How to Export Transactions to Another Company File in QuickBooks?

Reclassify Transactions in QuickBooks Online

Let’s come to the online version of QuickBooks. You can reclassify transactions in QuickBooks online, but the steps are a bit different. You need to rely on the Accountant Tools available in QuickBooks online Accountant to get the task done.

To reclassify transactions in QuickBooks online, follow the steps provide below:

  1. Go to your client’s company file.
  2. Click on the Accountant Tools.
  3. Select Reclassify Transactions.
  4. Go to the Account Types dropdown menu, and click on Profit and Loss.
  5. Check the Balance Sheet to see all the accounts, assets, and liabilities.
  6. Click on the Account that contains the transactions that you want to reclassify.
  7. Use filters to narrow down the list of transactions.
  8. After setting the filters, click on Find Transactions.
  9. Mark the checkbox against the transactions that you want to reclassify.
  10. Click on Reclassify.
  11. Click on the drop down menu and select the account that you want to reclassify the transactions to.
  12. Click on Apply.

Like the desktop version, the online version also has a few limitations on reclassifying transactions.

Read More: How to Setup Recurring Transactions in QuickBooks Desktop?

Note: Accounts using accounts payable contain transactions that cannot be reclassified. These transactions include invoices and bills. Further, you cannot change the account or class of any transaction that is linked to another transaction.

Conclusion

Once you’ve reclassified your transactions, the change is automatically saved in both the desktop and online version of QuickBooks. Remember that there are certain limitations on reclassifying transactions. And to make the process easier and faster, rely on the filters available in QuickBooks to quickly narrow down on the various transactions that you want to reclassify.

For help with reclassifying transactions in QuickBooks, get in touch with our experts at our LIVE CHAT.

FAQs

Q. Which transactions cannot be reclassified in QuickBooks?

A. Transactions that use accounts payable or that’re connected to another transaction cannot be reclassified in QuickBooks.

Q. Is the reclassify transactions tool available in all versions of QuickBooks?

A. No, it isn’t. Because reclassification of transactions is generally carried out by accountants, only the accountant, accountant enterprise, and enterprise versions of QuickBooks have the reclassify transactions tool.

Q. Where is the Reclassify Transactions tool in QuickBooks Online?

A. Once you’ve selected the company file of one of your clients, you can go to the Accountant Tools and select Reclassify Transactions to access the tool. The reclassify transactions tool, however, is only available in QuickBooks Online Accountant.

More Resources: