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.