QuickBooks Tip for Coaches & Consultants: How to Use Bank Rules (Safely) in QuickBooks Online
As a business coach, consultant, or service provider, your time is your most valuable asset. QuickBooks Online (QBO) bank rules can help streamline your bookkeeping—but if misused, they can cause serious financial confusion. Here's how to use them wisely to automate repetitive transactions while keeping your books clean and accurate.
What Are Bank Rules?
Bank rules in QuickBooks Online automatically categorize your bank and credit card transactions based on conditions you set—such as the vendor name or the transaction amount. For example, if you pay Zoom or Calendly each month, a bank rule can assign that to “Software Subscriptions” automatically.
How to Create a Bank Rule
Go to Banking > Rules in QuickBooks Online.
Click “New Rule.”
Name your rule (e.g., “Monthly Subscriptions”).
Choose if it’s money in or money out.
Add conditions like “Description contains Kajabi.”
Set the appropriate category.
Click Save.
Best Practices for Service-Based Businesses
Automate consistent monthly charges like CRM tools, schedulers, or coaching platforms.
Double-check your rules monthly to ensure proper categorization.
Use bank rules only for transactions with predictable patterns.
Avoid creating rules for variable income or client payments.
Common Mistakes to Avoid
Categorizing all Stripe or PayPal deposits without verifying the source.
Misapplying a rule to different vendors with similar keywords.
Forgetting to reconcile accounts because the rules appear “automatic.”
Relying solely on rules without reviewing financial reports.
FAQ
Can I use bank rules to organize all my business expenses?
You can automate many of them, but manual review is still necessary for accuracy.
Are bank rules a substitute for reconciliation?
No—bank reconciliation is still critical for ensuring your books match your bank.
Can I automate client payments?
You can match them to invoices, but avoid auto-categorizing income using bank rules alone.
What if I set up a rule incorrectly?
You can always edit or delete a rule and reclassify the affected transactions.
🚀 Want help organizing your coaching or consulting finances?
Book a free call with Dr. Bryan Raya, QuickBooks ProAdvisor, and learn how to streamline your books using bank rules the right way:
👉 https://calendly.com/dbr_bookkeeping/book-a-free-call-with-dbr
Let’s start Doing Business Right.
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