Simplify Your Bookkeeping: Tips You Need

Make Bookkeeping Easier for Your Home Improvement Business with QuickBooks Online: Bank Rules vs. Recurring Transactions

Approximately 64% of small business owners handle their own bookkeeping. That’s stressful when you are already handling everything else!

Luckily, QuickBooks Online has some great features to help make things easier. Two of the best are Bank Rules and Recurring Transactions. Knowing how they work and what makes them different can save you time and reduce mistakes.

What Are Bank Rules in QuickBooks Online?

Bank Rules in QuickBooks Online let you automatically sort and handle your bank transactions. This is super handy for regular expenses and income that follow a pattern. By setting up rules, you can tell QuickBooks what to do with transactions that match certain criteria, like amount, description, or vendor. When those transactions come in, QuickBooks automatically sorts them for you. This means less manual work and a smoother process.

Why Use Bank Rules?

  • Consistency: Makes sure transactions are always sorted the same way.
  • Saves Time: Cuts down on manual entry.
  • Accuracy: Reduces the chance of making mistakes.

What Are Recurring Transactions in QuickBooks Online?

Recurring Transactions are great for handling regular transactions automatically. You can create templates for things that happen regularly, like monthly bills or subscriptions. Once set up, QuickBooks will create these transactions on the schedule you choose, whether itโ€™s daily, weekly, monthly, or yearly.

Why Use Recurring Transactions?

  • Efficiency: Automatically creates and records regular transactions.
  • Reliability: Ensures regular expenses and income are always recorded on time.
  • Control: Lets you review and edit these transactions as needed.

The Difference Between Bank Rules and Recurring Transactions

While both features help make bookkeeping easier, they do different things:

  • Bank Rules: Automatically sort and handle transactions based on set criteria.
  • Recurring Transactions: Automatically create and record regular transactions using templates.

Which One Should You Use?

It depends on what you need. If you want to sort incoming transactions automatically, go with Bank Rules. If you need to regularly record the same transactions, Recurring Transactions are the way to go. Want to save time every month.


Using both Bank Rules and Recurring Transactions in QuickBooks Online can make your bookkeeping much easier. These tools save you time and help keep your records accurate and consistent.

For a detailed guide on setting up and using these features, keep reading below.

Detailed Guide: How to Set Up Bank Rules and Recurring Transactions in QuickBooks Online

Setting Up Bank Rules

  1. Go to the Banking Menu: In QuickBooks Online, click on the Banking menu.
  2. Choose Rules: Select the Rules tab to create a new rule.
  3. Create a New Rule: Click on the “New Rule” button.
  4. Define the Rule: Set the criteria for your rule, such as transaction type, description, or amount.
  5. Choose the Category: Decide how QuickBooks should categorize the transactions that meet your criteria.
  6. Save the Rule: Save your new rule, and QuickBooks will start applying it to your bank transactions.

Setting Up Recurring Transactions

  1. Go to the Gear Icon: Click on the Gear icon in QuickBooks Online.
  2. Select Recurring Transactions: Under Lists, select Recurring Transactions.
  3. Create a New Template: Click on “New” to create a new recurring transaction template.
  4. Choose the Transaction Type: Select the type of transaction you want to recur (e.g., invoice, expense).
  5. Fill Out the Template: Enter the details for your recurring transaction, such as amount, date, and frequency.
  6. Save the Template: Save your new template, and QuickBooks will automatically create these transactions on the schedule you set.

Final Thoughts

By leveraging both Bank Rules and Recurring Transactions in QuickBooks Online, you can simplify your bookkeeping process, save time, and avoid errors. These features are especially useful for home improvement business owners who manage their own finances.

For more tips and detailed guides on how to get the most out of QuickBooks Online, be sure to check out our other articles and resources.

Happy bookkeeping!

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