This process has got to be the most common mistake I see clients make using QuickBooks Online (QBO). The “Match” option can be significantly helpful. It’s quick and easy to post your banking items using “Match,” but make sure it’s correct. QBO sometimes guesses wrong. It makes educated guesses based on the following data.
- QBO will look back only 90 days for a match
- It will look for an open balance on an invoice/bill or payment
- User-created rule
- Same name categorized in past
It might not suggest a match if the transaction is already reconciled, posted with the wrong account, the wrong amount, or the date range is over 90 days.
When you choose the “Match” option, QBO will attempt to automatically find a transaction already posted in QBO to match the banking activity. If QBO finds the match, it will suggest linking the transaction to the existing record. This process will avoid creating duplicate entries. It’s important to note that the matching process relies on the information already presented in your QBO company. Match is beneficial for bank transfers between business accounts linked within QBO. If you’re transferring money to an account that is not linked to QuickBooks, the match feature will not work.
Here is what a “match” looks like.
Opened with more details. If you’re not sure it’s correct, you can click the categorize circle and see more details.
If this is correct -> click the green Match button.
On the other hand, when you choose the “Add” option, QuickBooks treats a transaction as a new entry. It creates a new record in your books using the information you provided during the categorization process; this option is typically used when dealing with a transaction that does not have a direct match or is unique. When you “Add” the transaction, you have complete control over creating a new record in your books, including specifying the appropriate account, category, or other relevant details. It’s particularly helpful when dealing with one-time or infrequent transactions that don’t have a precise match in your existing records.
Type in the vendor/customer name, select a category, tags, memo, or attachments, then click the green Add button.
Long Story, Short
- If QBO knows about the transaction, whether it be a bill, invoice, or check – choose “Match.”
- If QBO doesn’t know about the transaction, i.e., bank fee, auto-debt, deposit – choose “Add.”