QuickBooks Online Reclassify Tool

Reclassify Transactions Tool Overview

• Exclusive to accounting professionals using QuickBooks Online Accountant and clients with QuickBooks Online Advanced.
• Accessed through the Accountant Tools section.
• Offers comprehensive search options for locating misclassified transactions.

Account Type Box

• Allows searching for accounts in the client's company.
• Filter by Profit and Loss or Balance Sheet accounts using the dropdown menu.
• Specify transaction basis (cash or accrual) for better search accuracy.

Account / Amount Box

• Displays available accounts based on selected criteria.
• Selecting an account refines the transaction listing to show only that account's transactions.

Date Range Box

• Set a specific time frame for transaction searches to narrow results.

Additional Filter Tools

• Enhance searches by transaction type, customer, or vendor.
• A Modify filter exists to exclude non-modifiable transactions.

Accounts Search Box

• Shows selected accounts from the left-hand panel.
• Remove filters by selecting the 'X' next to an account name.

Find Transactions Box

• Initiates a search for transactions matching the designated settings.

Reclassify Button

• Lists transactions that correspond with the search criteria for reclassification.

Workflow for Using the Tool

• Navigate from the client dashboard to Accountant Tools and select Reclassify Transactions.
• Choose Account types (Balance Sheet or Profit and Loss) and define the basis (Accrual or Cash).
• Set transaction date range and apply additional parameters if needed.
• Click Find Transactions to display relevant accounts and transactions.
• Select the erroneous account and check the item for reclassification.
• Choose Reclassify and select the correct account from the dropdown.
• Click Apply to complete the reclassification, which can also be done in batches.

Limitations of the Tool

• Certain restrictions govern the use of the Reclassify Transactions tool, limiting its application in specific scenarios.

Transaction Change Limitations

• Can't change payment accounts for expenses or inventory adjustment accounts.
• Billable expense accounts can be altered, but related income accounts cannot.

Non-Reclassifiable Transactions

• Sales tax, payroll, and item-based transactions (like invoices and bills) are exempt from reclassification.
• Income accounts for billable expenses are set via Account and Settings.

Identifying Reclassifiable Transactions

• Use the Modify filter to filter transactions that are permitted for change based on account settings.

This quiz explores the features of the Reclassify transactions tool in QuickBooks Online Accountant. It's tailored for accounting professionals who need to effectively manage transaction reclassification. Test your understanding of how to utilize the tool and its search options for reclassifying transactions.