How to Undo Excluded Transactions in QuickBooks

When you connect your bank and credit card accounts, QuickBooks Online downloads the transactions. You then review and categorize them. 

Sometimes you make mistakes and need to reverse a transaction. You also may need to clear an excluded transaction. 

These safeguards ensure the integrity of your accounting records. They protect against information loss and help you comply with tax regulations. 

Delete Transactions 

The ability to delete transactions in QuickBooks is important for maintaining clean financial records and reducing error-prone data entry. However, it is important to understand the nuances of the deletion process in order to avoid potential damage to your accounting records and tax filings. The best way to avoid accidental deletions is by setting up a schedule for regular transaction review and by learning how to prevent duplicate transactions from being entered. 

You can exclude bank transactions that are downloaded to QuickBooks, which means they won’t appear in your account registers or financial reports. There are a few reasons to do this, including if the transaction is a duplicate of one you’ve already recorded or if it’s a personal expense that doesn’t belong in your business books. Excluding these transactions can make it easier to reconcile your bank accounts. 

You can also remove transactions from your bookkeeping by making them inactive. This method is good if you need to clean up your view but don’t want to permanently delete them from your account. To do this, navigate to the Chart of Accounts and find the account that you want to make inactive. Then, select the dropdown menu next to the account and choose “Make inactive”. This will hide the account and its transactions from your view but won’t delete them from your bank accounts or your accounting records. 

Undo Transactions 

If you've excluded a transaction by mistake, undo the action and return the transaction to your review list. This method works the same way for both bank and credit card transactions. 

When a bank or credit card transaction is downloaded to QuickBooks, you can choose whether to exclude the transaction or delete it. Excluding the transaction stops QuickBooks from downloading it again from your bank, and it won't appear in your financial reports or tax calculations. Excluding a transaction also helps keep your business records clean and organized. 

Generally, you should use this option to remove duplicate transactions, personal expenses, and other non-business transactions. If you're not sure how to handle a transaction, talk with your accountant or bookkeeper. 

Select the bank or credit card account that contains the transaction you want to unexclude. Then, select the 'For review' tab and find the pending transaction(s). Click the Edit icon () to unmatch the partially matched transaction(s) and move them back to the 'Categorized' tab. You can also undo an excluded transaction by selecting the checkbox next to the transaction and clicking Undo exclude. This moves the transaction back to the 'For review' tab. Undoing a transaction doesn't delete it from your account, but you might have to add it manually again if you want to track it in QuickBooks. 

Reconcile 

When you connect your bank account to QuickBooks, the system automatically downloads all your transactions. You can either accept or exclude them from your bookkeeping. Excluding a transaction removes it from your company expenses. It also stops the transaction from being re-downloaded from your bank when you reconcile. 

However, excluding a transaction can make it harder to track your business's financial status. If you're unsure whether to exclude or delete, it's best to consult with an accountant or bookkeeper. In general, it's best to exclude a transaction only if it is an error. Otherwise, the error could reappear in your bookkeeping and cause confusion. 

To exclude a transaction, open the Banking menu and select the relevant bank or credit card account. Go to the 'For Review' tab and find the transaction you wish to move. Click the blue transaction link in the 'Added/Matched' column to view the transaction details. If you've already categorized the transaction, it will remain in the 'Categorized' tab. If you don't have a category assigned, assign one using the drop-down menu. 

After confirming the transaction, select 'Batch Actions' and choose 'Exclude Selected'. Repeat this process if you need to exclude more than one transaction. You can also re-add the excluded transactions by deleting them from your 'For Review' tab and re-importing them from the file you exported earlier. 

Export 

When you want to delete a transaction that you imported from your bank, you can do so by selecting it in the Banking tab. You can also export the transaction to a CSV file and use it in another application, such as Excel. In addition, you can export your lists and reports as Excel files for backup purposes. However, this option only works on the QuickBooks online website and doesn’t work on the mobile app. 

If you have reconciled a bank or credit card transaction in QuickBooks but it doesn’t match the amount shown on your statement, you can edit the transaction to make the adjustment. The process is similar to editing a cleared transaction. You can change the amount, add or remove a receipt or expense item, or move the transaction to a different account. You can also remove the reconciled transaction from the bank feed by excluding it. 

If you’re a business that uses Fyle to manage reimbursable expenses, you can prevent specific expenses from being exported to QuickBooks by setting up skip export rules in the integration settings. These rules can be based on categories, custom fields, report number, employee email, spend date, and more. You can also choose whether a rule requires both conditions to be met or only one condition to be met. 

Conclusion 

Undoing excluded transactions in QuickBooks is a valuable skill that can help you maintain clean and accurate financial records. Whether a transaction was excluded by mistake or needs to be reviewed again for reconciliation, knowing how to restore it ensures your books stay balanced. Always take a moment to review excluded items carefully before finalizing them. 

If you're ever unsure or run into complications, don't hesitate to reach out for help. A QuickBooks expert can guide you through the process, troubleshoot issues, and ensure your records align with best practices. With the right support and knowledge, you’ll keep your accounting on track and avoid costly errors down the line.