Intuit’s QuickBooks Desktop and Online can be invaluable accounting software for helping you keep an accurate record of all transactions—tracking invoices, bills, payments, and journal entries so you have the financial data you need to make sound business decisions.  

But managing transactions can be complex. And sometimes you need to streamline by deleting multiple transactions at once to keep your records accurate. That might happen for the following reasons: 

• Someone entered an incorrect transaction 
• System syncs, imports, or manual errors caused duplicate transaction entries 
• Changes in accounting processes or compliance rules require you to remove outdated or invalid transactions  
• You are merging accounts or closing books for a specific period  
• You need to clear test data that was added during training or system setup 

Method is the CRM built for QuickBooks-powered businesses. If you’re wondering how to mass delete transactions in QuickBooks, let us show you so you can organize your books, keep accurate financial records, and get back to focusing on your business.

Why delete multiple transactions?

Errors and duplicates can cause big problems for your business, disrupting financial reports and complicating audits and reconciliations. 

Outdated or irrelevant data, such as test entries from training, can make your records disorganized and inaccurate, too. And policy changes or account consolidations can leave you with old transactions that don’t align with updated accounting practices.  

Here’s how bulk transaction deletion can help: 

• Ensuring your financial reports reflect accurate data.
• Making bank reconciliations smoother.
• Ensuring you’re prepared for audits and regulatory requirements.
• Cleaning up entries so you can navigate your QuickBooks account more easily.

How to delete multiple transactions in QuickBooks Online

QuickBooks Online (QBO) features tools such as Banking Center and Account Registers to help you manage transactions efficiently. While there is no direct Bulk Delete feature, Banking Center provides options like Undo and Exclude Transactions to help handle imported bank account feeds. 

QBO offers limited batch actions, such as sending or printing, for some transaction types. Batch editing is available in QBO Advanced (for items like invoices), but batch deletion requires QBO Accountant and is limited to specific transaction types.

Batch editing is available under Batch Transactions in QBO Advanced.

Deleting transactions individually

Need to delete a single transaction in QuickBooks Online? Find the desired transaction, either by viewing it through the customer profile, or using the Search bar to locate it either by type, date, or amount.

Open the transaction, click Delete in the top-right corner, and confirm the action—but double-check before confirming because deletion is permanent. If you want to include additional details, like the date you’re deleting the transaction, the reason, or your name, add that info in the Memo or Message section.

Once you’re sure, hit Delete.

Bulk deleting transactions

Removing duplicate entries all at once is called bulk deletion. While this isn’t available for all transaction types in QuickBooks Online, it is commonly used for entries like invoices, bills, or expenses. Batch deleting isn’t available for all QuickBooks users, so this may not be an option depending on your access and the type of transactions you want to delete.

Bulk deletion uses the Batch Actions function in QBO Accountant, which allows for the removal of multiple transactions from a single category—like bills, invoices, or expenses—all at once. 

If you’re dealing with multiple transactions that meet the criteria for bulk deletion, follow these steps:

1. From the left-hand menu on your dashboard, click on Transactions.
2. Choose the category that contains transactions you wish to delete.
3. Apply filters to narrow down the list of transactions. Filter by date, type, status, or other criteria.
4. Then click on the checkbox next to each transaction you want to delete. You can select multiple entries by checking the boxes next to them.
5. Look for the Batch Actions dropdown at the top of the list and click it to reveal the available options.
6. From the Batch Actions menu, select Delete. QuickBooks will ask for confirmation.
7. Confirm that you want to delete the selected transactions. Remember that deletions are permanent so be really sure before confirming.

Mass deleting transactions

Mass deletion involves removing large numbers of transactions across multiple categories or types. It’s a helpful tool to clear out outdated test entries, old bank feeds, or large batches of imported data that you no longer need.

Mass deleting often involves using filters to target specific transactions; while it’s a helpful feature, it’s important to note that it’s only available under certain conditions in QuickBooks Online, and certain options, like deleting invoices and expenses simultaneously, isn’t possible without QuickBooks Online Accountant access or third-party tools.

Always start by backing up your records. Then follow these steps:

1. From the left-hand menu, navigate to Banking (for bank feed transactions) or Transactions (for invoices, expenses, etc.).  
2. Apply filters (e.g., transaction date range, type, status) to narrow down the transactions to delete.  
3. Select the checkbox next to the desired transactions. Note: you can only select transactions in the same category.  
4. Click Batch Actions at the top of the list and select Delete.  
5. Review the selected transactions and confirm—deletions can’t be undone.

If you don’t see Delete as an option in the Batch Actions menu, you may not have appropriate access, or you may need to look at a different transaction type.

How to delete multiple transactions in QuickBooks Desktop

With QuickBooks Desktop, you have two options for deleting multiple transactions: (1) manually, or (2) the Batch Delete/Void Transactions tool (BDT), which supports specific transaction types like invoices, bills, or payments.

BDT streamlines bulk deletions but you’ll need to do more setup and filtering compared to QuickBooks Online, and you’ll have to navigate registers or transaction histories. It’s currently only available for QuickBooks Desktop Accountant (2018 onwards), Enterprise, and Enterprise Accountant 18.0+ users. If you’re using QuickBooks Pro or Premier, you won’t be able to access this feature.

It’s important to note that some transactions (like payroll, sales tax, and online payments, invoices with reimbursements or billable time, and any transactions in a closed period) can’t be batch deleted. If you want to delete more than one at a time, you’ll need to do it individually.

Remember, deletions are permanent. Always back up your QuickBooks Desktop company files so you can recover your data if anything goes wrong. 

Here’s a step-by-step guide to backing up your company files:

1. Open QuickBooks Desktop and sign in to the company file.
2. Go to the File menu, select Back Up Company, and then Create Local Backup.
3. Choose Local Backup and click Next.
4. Select where to save your backup (computer or external device).
5. Click Save it Now and select Next.
6. Confirm the backup was completed and stored in the chosen location.

Identify transactions to delete in QuickBooks Desktop

To find the transactions you want to delete, start by looking for indicators like duplicates, incorrect amounts, or test transactions, as well as those from closed periods. 

QuickBooks Desktop’s tools for filtering and searching specific entries include:

• Account Registers: View detailed transaction lists for specific accounts.
• Transaction History: Access a timeline of transactions to spot old or irrelevant ones.
• Search and Filter: Use Find or Filter functions to search by date, type, amount, or account.
• Audit Trail: Track changes to identify modifications or errors.
• Reports: Run reports like Transaction List by Date to find outdated entries.

Choose and delete multiple transactions

Once you’ve filtered and located duplicate transactions, errors, or outdated records, you can use the Delete Multiple Transactions tool to delete them all at once:

1. Go to the Accountant menu and select Delete Multiple Transactions.
2. Choose the account from which to delete transactions.
3. Apply filters to narrow down the transactions you want to remove.
4. Select the transactions by checking the boxes next to them.
5. Click Delete.

Confirm deletion

We can’t stress it enough: Deleting transactions is permanent. Take your time and confirm your choices to avoid accidental data loss. 

That all-important confirmation step allows you to review your selections before you finalize the deletion so you only remove the transactions you want to delete.

Here are some tools for confirming deletion of multiple transactions:

• Review Screen: Verify selected transactions before deletion.
• Confirmation Dialogs: QuickBooks prompts a final confirmation before proceeding.
• Transaction Summary: Check details such as date, amount, and type before deleting.
• Reconfirm Deletion: QuickBooks shows a summary of batch deletions for final verification.

Verify deleted transactions

Once you’ve deleted your transactions, verify that they were correctly removed: 

• Check carefully to make sure deleted transactions no longer appear.
• Generate a Transaction List or Balance Sheet.
• Use the Find function to check if deleted entries still show up.
• Confirm deleted transactions aren’t affecting your reconciliations.
• Review the log to confirm transactions have been properly deleted.

Reconcile your accounts regularly

Make sure you regularly reconcile your accounts to ensure your financial data is accurate, there are no discrepancies or errors, and your records are up to date.

To reconcile your bank accounts:

1. In the banking menu, click on Banking and select Reconcile.
2. Choose the account to reconcile.
3. Input the statement date and ending balance.
4. Compare QuickBooks transactions with your bank statement.
5. Review discrepancies, including deleted transactions.
6. Click Reconcile Now when all transactions are matched.

What to consider before deleting multiple transactions

Be careful before you delete multiple transactions. Think about the impact on your financial records and remember you will only be able to recover deleted data if you have a backup. 

Only delete transactions if it’s truly necessary, whether due to errors, duplicate transactions, or outdated entries.

If you’re not sure how deleting transactions will affect reports, bank reconciliations, and potential audits, consult your accountant or review your bookkeeping records in detail first.

Audit trail concerns

An audit trail will log all changes, including transaction deletions. But without specific details on why or how entries were removed, you can be left with gaps in your transaction history.

To maintain a clear audit trail:

• Consult your accountant before deleting any transaction.
• Document all deletions, explaining why they were made.
• Back up your QuickBooks file before deleting anything.
• Delete transactions in batches to track changes easily.
• Regularly review the audit trail to address discrepancies.

Impact on financial reports

Your financial reports—balance sheets and profit and loss statements—can also be affected if you delete multiple transactions. Removing invoices or payments may affect income, accounts receivable, or cash flow, for example, and that can result in inaccurate financial data.

Tips for minimizing report discrepancies:

• Review key reports before deletion to establish a baseline.
• Re-run reports after you delete transactions and compare results for discrepancies.
• Reconcile bank and credit accounts.
• Document deleted transactions and their impact.
• Consult an accountant.

Limitations related to data recovery

There’s no ‘Undo’ option in QuickBooks. So it’s not just difficult and time-intensive to try to recover transactions after you’ve deleted them—it may even be impossible.

Here are some best practices for protecting your data if you’re planning to delete multiple transactions:

• Back up everything—locally and to the cloud.
• Export key reports.
• Save a copy of your company file.
• Check your backup to make sure it actually worked.

When it comes to backing up your data, it’s strongly recommended (and sometimes required) to run QuickBooks in Single-User Mode. Then, use the BDT option and choose Back Up and Delete or Back Up and Void.

Bank transactions and reconciliations

Deleting transactions like payments, deposits, and invoices can cause discrepancies that affect your bank register and financial statements. Make sure you do a bank reconciliation so your records match your statements.

To handle reconciliations after deleting multiple transactions:

1. Review your bank statement.
2. Access the reconciliation screen in QuickBooks.
3. Compare transactions, ensuring deleted entries are removed.
4. Adjust for discrepancies if necessary.
5. Reconcile the account to match your bank statement.
6. Double-check for errors before finalizing.

Key takeaways

• Bulk and mass deletions in QuickBooks Online help remove multiple transactions efficiently, but differ in scope and method.
  
• QuickBooks Desktop has limited bulk delete features and requires manual steps or the Delete Multiple Transactions tool.
  
• Deletions are permanent. Always back up your company file before removing transactions to avoid data loss.
  
• Audit trails and financial reports can be disrupted by deletions so consult an accountant if you’re unsure.
  
• Reconcile accounts after deleting transactions to ensure your books match your bank records.
  

Frequently asked questions about deleting multiple transactions in QuickBooks

Managing multiple companies can be a juggling act, but QuickBooks Online makes it easier by letting you keep everything organized in one place—well, almost. While QuickBooks Online (QBO) doesn’t allow you to manage multiple businesses under a single subscription, you can set up separate companies with their own subscriptions. This way, you can seamlessly switch between businesses and ensure your finances are always in tip-top shape.

For businesses juggling multiple workflows or client accounts, tools like Method CRM can help bring added structure and flexibility alongside your QuickBooks setup.

This article will walk you through why setting up multiple company files in QuickBooks Online might be a game-changer for your business, and you’ll learn step by step how to add another company to QuickBooks. Whether you’re a serial entrepreneur, an accountant managing multiple clients, or a small business owner opening a second company, this guide will make the process smooth and stress-free. Let’s dive in!

Before you begin

Before you begin setting up another company in QuickBooks Online, make sure you have the following ready:

• Existing QuickBooks account details: Your current QuickBooks Online credentials (email address and password) to create and manage multiple companies under the same login.
• Company information: This section includes essential details about the new company, including its legal name, address, tax information, and industry type.
• Email address for notifications: A valid email address to receive updates, invoices, and account-related communications.
• Budget for subscription: Each company requires its own QuickBooks Online subscription, so ensure you’re ready for the additional cost.
• Clear financial structure: Decide how you’ll organize financial transactions to avoid company overlap or confusion.
• Internet connection: A stable internet connection to access QuickBooks Online and complete the setup process.

Steps to add a new company to QuickBooks Online

Now that those prerequisites are in place, let’s roll up our sleeves and walk through the process of adding a new company to your QBO account. Each step is needed to ensure your new company is set up properly. 

Step 1: Access the QuickBooks Online pricing page

Start by selecting a subscription plan that fits your business needs.

• Go to the QuickBooks Pricing Page.
• Review the available plans, paying attention to:
  • Number of users
  • Included features (e.g., invoicing, payroll, inventory)
  • Monthly or annual pricing
• Don’t worry if you’re unsure which to choose — you can always change your plan later.
• Click “Buy Now” to start a paid subscription or “Start Free Trial” under your chosen plan.

Access the QuickBooks Online pricing page if you’re already logged in

To navigate to the pricing page from your QuickBooks Online dashboard:

1. Locate the Gear Icon in the top-right corner of the screen.
2. Select “Subscriptions & Billing” in the dropdown menu. 
3. In the subscription management section, locate and click the link to Plans & Pricing.

Note: These options may not appear for all users. In that case, you can log out to view the QuickBooks pricing page. 

Step 2: Sign in to your existing QBO account

QuickBooks links all your companies under a single Intuit login, so there’s no need to create a new account. The next step is to log in to your existing Intuit account using the login credentials tied to your current QuickBooks Online account.

If you’re already signed in:

• QuickBooks may prompt you to confirm your existing account.
• Double-check it’s the correct one before continuing.

If you’re not signed in:

• Look for the “Adding a company to an existing account?” section.
• Click Sign in and enter your Intuit account credentials.
• Complete two-factor authentication if prompted.

Once you sign in, you’ll be redirected to your existing QuickBooks dashboard, where you can manage your businesses or add a new one. 

Step 3: Follow the on-screen setup prompts

QuickBooks will walk you through setting up your new company file, such as:

• Business name
• Contact information 
• Time in business
• Business description
• Tax information 

These inputs help QuickBooks customize features and recommendations.

Step 4: Select business features

After entering your basic info, you’ll choose which features best suit your business needs.

Common options include:

• Sending and tracking invoices
• Organizing and categorizing expenses
• Tracking sales tax
• Managing inventory (if you sell products)
• Time tracking (for employees or hourly work)
  

Pick only what’s relevant for this new account now and remember that you can always turn features on or off later. 

Step 5: Specify Your Role

Telling QuickBooks your role helps tailor the setup experience. So it’s important to choose the option that best describes you from these three available titles:

• Business owner
• Employee or manager
• Accountant or Bookkeeper
  

If you’re setting this up for a client, selecting “Accountant or Bookkeeper” gives access to tools designed for financial professionals.

Step 6: Complete Initial Setup

Once all inputs are provided, QuickBooks will create your new company file. Now’s the time to complete the initial company setup. 

• Setup usually takes a few moments.
• You’ll be redirected to your new company’s Dashboard or Home Page.
• Take a few minutes to explore:
  • Customize your chart of accounts
  • Import data from spreadsheets or other software
  • Invite team members or your accountant to collaborate
    

Think of this dashboard as your command centre for managing the company’s finances.

A deeper look at setting up new company details

Once you’ve created your new company in QBO, you’ll need to spend some time inputting the company details. The following steps will help ensure that your company is set up correctly.

1. Enter the company name as it should appear on invoices, reports, and other communications.
2. Add the company address, including street, city, state, ZIP code, and country.
3. Specify the legal name if it differs from the company name (for tax and official purposes).
4. Choose the type of business entity (e.g., sole proprietorship, partnership, corporation, or LLC).
5. Pick an industry that closely matches your company’s operations (e.g., retail, construction, professional services).
6. Specify the currency in which your business operates. This is particularly important if you deal with international clients or vendors.
7. Define the start and end dates of your company’s fiscal year or accounting period.
8. Select features like inventory tracking, multicurrency, or project tracking based on your business requirements.
9. Enter your business’s tax identification number (TIN, EIN, or VAT number, depending on your country).
10. Configure your tax settings if you plan to track sales tax in QuickBooks.
11. Link your bank accounts or choose to do it later. 
12. If others will be managing finances or reviewing reports, invite them as users with appropriate access levels.
13. Double-check all information for accuracy before finalizing the setup.
14. Click Save or Continue to proceed to the new company’s dashboard.

Important considerations when adding another company

Adding another company to QuickBooks Online can be a strategic move, but it comes with important considerations. First, evaluate the financial implications. Each company requires a separate QuickBooks Online subscription, so ensure your budget can accommodate the additional expense. Ensure the features of your selected plan align with the new company’s needs to avoid paying for tools you won’t use. 

Next, think about resource allocation. Managing multiple companies means dedicating more time and effort to bookkeeping, reporting, and compliance. Ensure you have the personnel or tools, like automated integrations, to handle the increased workload. 

Lastly, maintain clear boundaries between the finances of different companies to avoid legal or tax complications. Proper planning and an organized approach can help you manage multiple companies effectively and avoid potential pitfalls.

Users

When managing multiple companies in QuickBooks Online, set up and monitor user permissions to ensure that the right people have access to the right data. QuickBooks allows you to assign different roles and permissions to users from each company linked to your account. 

To manage permissions, click the Gear Icon at the top right corner and select Manage Users. Here, you can invite new users, assign roles such as admin, accountant, or standard user, and define their level of access. 

Be mindful of the sensitive nature of financial data, and review permissions regularly to ensure that only authorized users have access to critical information, especially if you’re managing several businesses with different teams or responsibilities.

Online banking

Setting up online banking for a new company in QuickBooks Online is an essential step for fine-tuning your financial processes, but it can be a bit complex. To set it up, go to the Banking menu and select Add Account. From there, you’ll be prompted to search for your bank and log in with your bank’s credentials. QuickBooks will then automatically download your transactions, making reconciliation easier. 

This process can be complicated depending on: 

• Your bank’s integration with QuickBooks.
• The types of accounts you want to link (checking, savings, credit cards, etc.).
• How your bank categorizes transactions

If your business has multiple accounts, map each account correctly to avoid mismatches in your financial records. 

If you’re handling foreign transactions or multiple currencies, make sure your bank feeds are set up to handle these scenarios accurately. Bank feeds can occasionally have syncing issues or delayed updates, so monitor and troubleshoot them regularly to ensure your records are up-to-date and accurate.

Lists

Managing and differentiating lists such as customers, suppliers, and inventory across multiple companies in QuickBooks Online requires careful organization to keep each company’s data separate and accurate. 

For customers and suppliers, you can create distinct lists for each company to track transactions, payments, and contact details independently. To manage customer and supplier lists within each company’s account to avoid overlap between businesses, navigate to the Sales or Expenses menus. 

For inventory management, QuickBooks Online allows you to set up inventory items specific to each company. If you manage inventory across multiple companies, ensure that you maintain separate product lists for each business to prevent confusion when tracking stock levels or generating reports. By staying organized and keeping each company’s lists isolated, you’ll be able to manage operations, reduce errors, and generate accurate reports for each business.

Managing multiple companies

Efficiently managing more than one company within QuickBooks Online requires strategic planning and organization to avoid confusion and ensure smooth operations. First, maintain clear distinctions between companies by customizing naming conventions for accounts, customers, and inventory items. This helps prevent overlap and ensures you can quickly identify which company you’re working with. 

Leverage QuickBooks Online’s reporting tools to create customized financial reports for each company, helping you stay on top of key metrics without mixing data. Then, consider using automation for tasks like bank reconciliations and invoicing to save time and reduce errors. 

If you’re managing multiple companies within the same industry, you can standardize processes across businesses, making it easier to implement best practices and share resources. Finally, regularly audit your data and reconcile accounts to catch discrepancies early, ensuring that financial records for each company remain accurate and compliant. 

Switching between companies

1. Go to the QuickBooks Online login page and enter your credentials to access your account.
2. Locate and click on the Gear Icon in the upper-right corner of your dashboard.
3. From the dropdown menu, choose the Switch Company option to see a list of all the companies linked to your account.
4. Click on the name of the company you wish to switch to, and you’ll be taken to that company’s dashboard.
5. Repeat these steps to switch back and forth between companies as needed. 

Consolidated reporting

Generating consolidated reports for multiple companies in QuickBooks Online requires a bit of creativity. QuickBooks does not provide a direct feature for creating consolidated reports across different company files. But, you can still generate consolidated financial data by exporting individual reports from each company. 

1. Generate your desired report (such as a profit and loss statement or balance sheet) for each company by navigating to the Reports menu within each company’s account. 
2. Once the reports are generated, export them as PDF or Excel files. 
3. After exporting, you can manually combine the data in a spreadsheet program like Microsoft Excel or Google Sheets, where you can sum up the totals, create consolidated views, and perform further analysis across all companies. 

Alternatively, third-party reporting tools or apps that integrate with QuickBooks Online can often pull data from multiple companies and automatically generate consolidated reports, saving you time and effort. Be sure to keep track of each company’s accounting periods to ensure consistency when combining reports.

What happens to existing users when I add a new company?

When you add a new company in QuickBooks Online, existing users associated with your current company will not automatically have access to the new company. Each company in QuickBooks Online operates under its own subscription, so adding a new company does not grant users access to it by default. 

To allow existing users to access the new company, you will need to manually invite them and assign appropriate permissions. Navigate to the Gear Icon, select Manage Users, and then add the user to the new company with the necessary role and permissions (e.g., admin, accountant, or standard user). 

You control which companies each user can access, allowing you to maintain separate access for different teams or individuals based on the company they work with. If users are already managing other companies, their access to those companies will remain unchanged unless modified. This ensures that each user’s access is tailored to their specific responsibilities across your businesses.

What if I accidentally added the wrong company?

If you accidentally add the wrong company, you can take the following steps: 

1. First, confirm that the wrong company was added. Check the company details and ensure it’s not the one you intended to set up.
2. Log in to QuickBooks Online and click the Gear Icon in the top-right corner of the dashboard.
3. From the dropdown menu, select Subscriptions & Billing.
4. Find the option to Cancel Subscription for the incorrect company. 
5. Follow the prompts to cancel the subscription and close the company account.
6. Return to the dashboard and follow the process to add the correct company, ensuring you select the correct plan and input accurate company details.
7. If users were assigned to the wrong company, you may need to reassign them to the new company. You can do this from the Manage Users section of the Gear Icon.
8. Ensure the subscription for the newly added company is active and set up correctly to avoid any billing issues.

Note: Once you cancel the subscription, the data will be retained in read-only mode for up to one year.

Do I need a separate subscription for each company?

Yes, you will need a separate subscription for each company you add to QuickBooks Online. QuickBooks Online treats each company as a distinct entity, meaning each requires its own subscription plan to access the software. 

While you can manage multiple companies under the same login, each company’s data, subscription, and billing are handled individually. This is important to note, especially if you plan to track finances or set up custom reports for multiple companies. You’ll also need to pay for each company’s subscription-based on the selected plan (Simple Start, Essentials, Plus, etc.), which can add up if you’re managing several businesses. 

Stay organized across companies with Method and QuickBooks

Managing multiple QuickBooks accounts doesn’t have to mean juggling spreadsheets or losing track of client details. Method CRM helps bring everything into one streamlined system with customizable workflows, shared contact databases, and automation that cuts down on manual work. It’s a smart solution for anyone handling more than one business or client file in QuickBooks Online.

Key takeaways

Now that you’ve learned how to add another company in QuickBooks Online, here are a few things to remember while managing multiple companies:

• You need an existing QuickBooks Online account to add another company to QuickBooks.
• An additional company requires a separate subscription. 
• Every additional company has its distinct data files requiring additional management resources.
• You may need additional personnel or automated tools to manage multiple companies effectively.
• User permissions can help you control access to each company. Different access levels can be assigned to team members based on their roles and responsibilities.

Frequently asked questions

Adjusting journal entries play a big role in maintaining the accuracy and reliability of your financial records. These entries are used to correct errors, update accounts for accruals, or reflect changes in accounting estimates. 

Whether you use QuickBooks Online or QuickBooks Desktop, learning how to enter these adjustments correctly will help you keep your financial statements in check and stay compliant.

If you manage your bookkeeping through QuickBooks and want more flexibility in how you track and organize your data, tools like Method CRM can complement your workflow with deeper customization and automation.

In this guide, we’ll take you through the step-by-step process of entering adjusting journal entries in QuickBooks, and why this process should be a key part of your bookkeeping.

What is an adjusting journal entry in QuickBooks?

An adjusting journal entry is a manual accounting entry made to correct or adjust balances in your accounts. Companies use journal entries at the end of an accounting period to correct an error, record an accrual or depreciation, or make year-end adjustments.

Adjusting journal entries can impact financial statements in three ways:

• Ensure revenue and expenses are matched in the correct period (matching principle).
• Adjust account balances to reflect accurate assets, liabilities, and equity.
• Prepare financial records for tax filing and compliance with accounting standards.

Who can create adjusting journal entries in QuickBooks Online?

Any user with the necessary permissions can create adjusting journal entries in QuickBooks Online. These include:

• Accountants: Professionals with Accountant or Admin-level access.
• Admins: Business owners or managers with full administrative rights.
• Accountant users: External accountants added through the QuickBooks ProAdvisor program.

Controlled access is essential for protecting financial accuracy and preventing errors. Only trusted, qualified users—like accountants or experienced admins—should have permission to make these changes, as they directly impact your books and audit trail.

Adjusting journal entries in QuickBooks

This tutorial walks you through how to create adjusting entries in Intuit QuickBooks Online Accountant.

Step 1: Sign in to QuickBooks Online Accountant

Log in to QuickBooks Online Accountant. This platform gives you access to advanced features, like the ability to create adjusting journal entries.

Remember, it’s important to have secure login credentials:

• Always use a strong, unique password.
• Enable two-factor authentication (2FA).
• Avoid sharing your credentials with others.

Step 2: Advance to the ‘Go to QuickBooks’ dropdown

Navigate through the interface to find the necessary dropdown menu.

• Click on the gear icon at the top-right corner of the dashboard.
• Look for the “Accountant Tools” section.
• Select “Journal Entries” from the available options.

Step 3: Select the client’s company

From the list of accounts, select the client’s company you want to work on. QuickBooks Online Accountant allows you to manage multiple companies, so ensure you access the correct one.

Step 4: Choose ‘+New’

Once inside the client’s company file, click the “+New” button in the left-hand menu.

The “+New” menu provides options for creating various types of transactions, such as invoices, expenses, and general journal entries. To proceed with adjusting, select “Journal Entry” from the list.

Step 5: Choose ‘Journal Entry’

To create a new adjusting journal entry:

• From the “+New” menu, scroll down to the “Other” section.
• Click “Journal Entry” to open the journal entry window.

Step 6: Choose the checkbox ‘Is Adjusting Journal Entry?’

When the journal entry window appears, look for the checkbox labelled “Is Adjusting Journal Entry?”. Marking this box indicates that the entry is an adjustment, which is essential for proper categorization in reports and audits.

Adjusting journal entries are flagged differently from regular journal entries to ensure they’re identified as corrections or period-end adjustments, which is important for compliance and transparency.

Step 7: Follow the series of steps to record the journal entry

1. Select accounts to adjust: Use the dropdown menu to choose the appropriate accounts for the adjustment (e.g., revenue, expenses, or liabilities).
2. Enter debit and credit amounts: Ensure the debit and credit amounts are balanced for accurate bookkeeping.
3. Add a memo: Briefly explain the adjustment to maintain a clear audit trail.
4. Specify the date: Choose the correct date for the adjustment, making sure it falls within the appropriate reporting period.
5. Attach supporting documents: If necessary, upload files such as receipts or invoices for reference.

Step 8: Choose ‘Save and Close’

After entering all the details, finalize the journal entry by saving it.

• Click “Save and Close” to record the adjustment and return to the main dashboard.
• Alternatively, click “Save and New” to create another entry if needed.

Remember to double-check all fields for errors before saving, and review the general ledger to confirm the changes have been correctly applied.

With these steps, you’ll be able to efficiently process adjusting journal entries in QuickBooks Online Accountant so your financial records are accurate and ready for reporting. 

How to make adjusting journal entries in QuickBooks Desktop

Follow these steps to create an adjusting journal entry in QuickBooks Desktop:

Step 1: Navigate to the ‘Company’ menu

Open QuickBooks Desktop and navigate to the top bar menu. Click on “Company” to access accounting-related functions. This is where you’ll be able to create adjusting journal entries.

Step 2: Choose ‘Make General Journal Entry’

• In the Company menu, click “Make General Journal Entry.”
• This will open a new window to create your journal entry.
• Make sure you have the necessary details ready before proceeding. 

Step 3: Select the correct date

Enter the adjustment date carefully so that the entry aligns with the appropriate reporting period. Backdating or misdating can impact closing balances and financial accuracy.

Step 4: Enter the details of the adjusting entry

1. In the Account column, select the account(s) to debit and credit.
2. Enter the appropriate debit and credit amounts (they must balance).
3. Add a memo to describe the reason for the adjustment.
4. If applicable, assign a customer, vendor, or class to the entry.
5. Repeat for each line item needed in the adjustment.

Step 4: Mark the entry as an adjusting journal entry

• Check the box labelled “Is Adjusting Journal Entry?” to flag the transaction as an adjustment.

Step 5: Save and review the entry

• Click “Save & Close” to save the journal entry.
• Review the entry for accuracy in the Journal Entry List or Reports section.
• Double-check that debits equal credits and all information is correctly categorized.

How to make adjusting journal entries in QuickBooks Online

QuickBooks Online (QBO) simplifies the process of creating adjusting journal entries with an intuitive interface.

Step 1: Access the adjusting journal entry feature

Log in to QuickBooks Online. Click the “+ New” button in the left-hand menu, then select “Journal Entry” from the dropdown menu. To mark it as an adjusting entry, check the “Is Adjusting Journal Entry” box at the top of the form.

Step 2: Choose the correct date

Enter the adjustment date so that the entry aligns with the appropriate reporting period. 

Step 3: Select the accounts to adjust

1. Use the dropdown menu to choose the accounts being adjusted.
2. Specify the debit and credit amounts for each account.
3. In the next line, choose the offsetting account.
4. Enter the equal and opposite amount (credit if the first was debit, and vice versa).

Step 4: Save and review the entry

Once you’ve entered all the necessary details for the adjusting journal entry, click “Save & Close” to finalize the adjustment and record it in QuickBooks. 

After saving, review the affected accounts in your general ledger to ensure the changes have been applied correctly and the entry aligns with your financial records. 

Why are adjusting journal entries important in QuickBooks?

Adjusting entries helps businesses make informed decisions, remain compliant with accounting standards, and prepare reliable financial statements by keeping their books accurate and up to date.

These entries are typically made at the end of an accounting period to correct errors, account for accruals or deferrals, and reconcile discrepancies.

How adjusting journal entries contributes to financial management:

• Accurately reflect the value of assets, liabilities, and equity for proper balance sheet reporting.
• Adjust balances for accruals, prepaid expenses, or depreciation to align with Generally Accepted Accounting Principles (GAAP) or International Financial Reporting Standards (IFRS).
• Provide a clear and accurate foundation for preparing tax returns and ensuring compliance with regulatory requirements.
• Maintain a transparent audit trail, reducing risks during financial reviews or external audits.

Key takeaways

• Adjusting journal entries keep records accurate and compliant.
• QuickBooks tools make creating adjusting journal entries easy in both Desktop and Online.
• Debits must equal credits to stay balanced.
• Use clear descriptions and correct dates for audit readiness.
• Limit access to adjustments to protect data integrity.

Get the most out of QuickBooks with Method

If you want to streamline workflows, reduce manual data entry, and have better visibility into customer and financial data, all while using QuickBooks, you need Method. Fully integrated with QuickBooks, Method allows you to customize how you track transactions, automate repetitive tasks, and manage client or customer interactions — all while keeping your accounting data in sync. Method is the perfect solution for businesses that want to scale their operations while using QuickBooks.

Frequently asked questions

What do you do if you need to re-categorize or reclassify a transaction in QuickBooks, due to a mistake or a reporting change, for instance? How do you move a transaction into a new class without disrupting your financial records or business data?

The most important thing to know is that there’s a tool in QuickBooks Online Accountant and QuickBooks Online Advanced, as well as QuickBooks Desktop Accountant and Enterprise—called Reclassify Transactions—that lets you adjust categories and correct classification errors. If you’re using an unsupported version, you can still manually reclassify transactions one by one. Let us walk you through how these features work.

Method is the top CRM built for QuickBooks-powered businesses, offering robust workflow automation and real-time, two-way sync. We have worked with thousands of small businesses like yours, and we have put together this tutorial for reclassifying transactions in QuickBooks Online and Desktop so you can save time and keep your financial records accurate and organized. 

What is reclassifying transactions in QuickBooks?

Wondering what it means to reclassify a transaction in QuickBooks? Put simply, it involves modifying the account, GST (if applicable), location, or class associated with that transaction. 

Imagine, for instance, that you are entering transactions related to your expense account and you want to update the class they belong to from “Office Supplies” to “Marketing.” Or, maybe you accidentally assigned an expense to the wrong account. You can reclassify those transactions so they are recorded accurately in the appropriate accounts.

Accurate reclassification supports better reporting and compliance, which keep your accounting—and your business—running smoothly.

Why would you need to reclassify transactions in QuickBooks?

Here are some common reasons why you might need to reclassify transactions in QuickBooks: 

• A transaction was assigned to the wrong account or category.
• An account structure has changed and you need to make sure all your transactions match the updated chart of accounts.
• You need to make adjustments to maintain accuracy in your tax reporting.
• You need to maintain consistent categories for clear and reliable financial statements.
• You are preparing for an audit and need to make sure all entries are accurate and traceable in your financial records.

Regardless of the type of transaction, it’s vital to reclassify them correctly, or you may end up with inaccurate financial statements. That, in turn, affects your ability to make sound business decisions—and can also create big problems when you file taxes or get audited, including significant extra work during financial reviews or reconciliations. 

Even worse, inaccurate financial records can lead to a lack of trust among your stakeholders, and a serious negative impact on your business.

It is important to note, however, that only certain transaction types, like expenses, bills, checks, and journal entries, can be reclassified.

How to reclassify transactions in QuickBooks Desktop

For QuickBooks Desktop Accountant users, there are powerful features to help you reclassify transactions efficiently and accurately. They include a Reclassify Transactions tool, which makes it simple to batch reclassify, or reclassify multiple transactions at once, as well as the option to manually reclassify transactions. 

These features help you save time and reduce errors so you can keep your financial records organized and accurate. 

Using the Reclassify Transactions tool in QuickBooks Desktop

Using QuickBooks Desktop Accountant’s Reclassify Transactions tool, you can update multiple transactions quickly and efficiently. 

Follow these steps to use the Reclassify Transactions tool in QuickBooks Desktop Accountant:

1. Open QuickBooks Desktop and log in as an administrator.
2. Go to the “Accountant” menu and select “Client Data Review”, then “Reclassify Transactions.”
3. In the “Accounts” section, select the “View” dropdown to choose an account type.
4. In the “Transactions” section, select the “Name” dropdown to choose a name.
5. Go to the “Show transactions” dropdown to choose the transactions you want to review.
6. Select the transaction you want to reclassify.
7. Select the “Account to” checkbox or the “Class to” checkbox to choose a new account or class.
8. Click “Reclassify” to update the transaction.

Here are our top tips for making sure you’re using Reclassify Transactions effectively:

• Use filters to find transactions, narrowing them down by date range or account type.
• Double-check the new category or account before applying changes.
• Always back up your company file before making bulk updates.

Manually reclassifying transactions in QuickBooks Desktop

Sometimes you’ll find that the Reclassification Tool in QuickBooks Desktop Accountant isn’t suitable for the changes you’re looking to make—for example, if you are only changing a small number of transactions or want to do them one at a time. 

In that case, QuickBooks Desktop Accountant offers the option of manually reclassifying transactions. 

Here are the steps to take to manually reclassify transactions in QuickBooks Desktop: 

1. Open QuickBooks Desktop and navigate to the “Chart of Accounts.”
2. Select the account containing the transaction you want to modify.
3. Locate the transaction, right-click on it, and choose “Edit.”
4. Update the account (also known as category in some versions) and click “Save & Close.”

We have some best practices to help you with manual reclassification:

• Working on one transaction at a time helps to minimize errors.
• Adding detailed notes or memos to explain the reason for the change serves as a reminder if you, your accountant, or anyone else needs to review the reclassification.
• Keeping a record of all adjustments is essential for audit purposes.

Steps to reclassify transactions in QuickBooks Online (QBO)

QuickBooks Online Accountant and QuickBooks Online Advanced also have a Reclassify Transactions tool to simplify the task of modifying transactions that works a little differently from the reclassification feature in QuickBooks Desktop. 

Let us walk you through the steps for reclassifying transactions in QuickBooks Online.

Step 1: Access the Reclassify Transactions tool in QBO

1. Open your client’s company in QuickBooks Online Accountant or QuickBooks Online Advanced.
2. Go to “Accountant Tools”  (in QuickBooks Online Accountant) or “Settings” (in QuickBooks Online Advanced) and click “Reclassify Transactions”.

Step 2: Select the transactions you want to reclassify

1. Filter the transactions by selecting the type, class, location, GST, customer/supplier name, or modify filter. Note: To reclassify by class, you must enable class tracking your client’s settings.
2. Use the checkboxes to select the specific transactions that need reclassification.

Step 3: Move the transactions

1. Using the dropdown menu, select the new account, GST rate, class, or location to which the transactions should be assigned.

This step is critical because ensuring your transactions are appropriately classified will help you maintain accurate bookkeeping and reliable financial records. Accurate transaction categorization ensures that your financial reports—such as profit and loss statements and balance sheets—provide an accurate picture of your small business’ income and expenses. 

Step 4: Review and confirm changes

1. Double-check all selected transactions and their new classifications.
2. Click “Apply” to finalize the reclassification.

When you are reclassifying transactions, check and double-check all changes. The last thing you want is to make a mistake that affects the accuracy of your financial records. 

Review any changes carefully to maintain the integrity of your bookkeeping and make sure reports and statements can be relied on for business decision-making and compliance.

Key takeaways

• Reclassifying transactions means updating the account, GST (if applicable), location, or class assigned to a transaction to ensure accurate financial records.
• Using the Reclassify Transactions tool in QuickBooks Desktop Accountant and Enterprise versions; QuickBooks Online Accountant; and QuickBooks Online Advanced allows you to efficiently correct errors and align entries with your chart of accounts. This function is especially useful when reclassifying multiple transactions.
• Manual reclassification is helpful for reclassifying individual transactions, especially when batch reclassifying isn’t suitable for the changes needed.
• Correct reclassification improves reporting accuracy, supports tax compliance, and helps your small business prepare for audits.
• Incorrect categorization can lead to inaccurate financial statements and issues during audits or tax filing.

Frequently asked questions about reclassifying transactions in Intuit QuickBooks

What are reclassification entries in QuickBooks?

When you make an adjustment to correct a transaction’s category in QuickBooks, that is called a “reclassification entry.” Reclassification entries ensure that your transactions are recorded in the right account, location, or class so your financial statements remain accurate.

What kind of accounts can be reclassified?

The types of accounts that make up reclassification entries in QuickBooks typically involve expenses, income, or assets. The purpose is to move transactions to the correct account to improve the accuracy of reporting and compliance. There are some kinds of transactions that can’t be reclassified, such as those that use accounts payable or accounts receivable, like invoices and bills. QuickBooks also doesn’t allow you to change the class or account of any transactions linked to other transactions.

What is a journal entry in QuickBooks?

A journal entry is a manual accounting record used to adjust balances or move amounts between accounts. The journal entry is an accounting tool that is often used in QuickBooks for reclassification when transactions cannot be adjusted directly.

How Method CRM can help

Reclassifying transactions plays a key role in keeping your financial records accurate. Whether you’re working in QuickBooks Desktop or Online, following the proper steps ensures your data stays organized, reduces the risk of errors, and helps maintain clear, dependable financial reports.

To make financial management even easier, consider integrating with Method CRM. Our seamless connection with Intuit QuickBooks keeps your transaction data accurate and current, giving you full control over your business finances.