Our firm utilizes the Uncategorized Expense account as a holding account for unknown expenses that need additional information before they can be categorized to a necessary overhead expense, or a COGS (Cost of Goods Sold) expense account. All COGS expenses should be connected to a Products and Services Item. If an expense is not a direct labor or material cost of sales, it is considered a necessary overhead expense. Examples of necessary overhead expenses are accounting fees, marketing and advertising, insurance, legal fees, rent, repairs, supplies, travel, meals, fuel, taxes and utilities.

QBO Uses the Uncategorized Expense Account in Your Bank Feed

When QuickBooks Online downloads your bank or credit card transactions, it attempts to use the rules engine technology to determine the expense account to categorize your transactions to. When it cannot figure it out, it automatically assigns amounts paid to the Uncategorized Expense account.

Uncategorized Expense 1
Regina Pitts
Regina PittsChief Financial Officer
Member of the QuickBooks ProAdvisor Program

Your Personal Guide to Seamless Accounting: Advanced QuickBooks ProAdvisor at Your Service

Hey there! I’m Gina, and I’m the proud co-founder of Lend A Hand Accounting. Why did I start this? Well, I believe that everyone should have access to affordable, efficient, and flexible accounting and bookkeeping services. It’s all about making sure these essential services fit snugly into your budget without any fuss.

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At the end of the day, we’re here to serve you. We really appreciate the trust you place in us and we’re eager to meet all of your accounting and bookkeeping needs. Looking forward to being part of your team!

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Gina

The Content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.

Clear Uncategorized Expenses Prior to Your Monthly Reconciliation

Whether you do your own bookkeeping, or we do it for you, it is easy to update the category of an Uncategorized Expense. If it is an overhead expense, you can open the expense transaction and select the correct expense account for the transaction, then save and close. If the Uncategorized Expense is for a COGS (Cost of Goods Sold) expense, you will create an expense entry using the Products and Services Items for the COGS expense to replace the Uncategorized Expense. It is important to clear all of your Uncategorized Expenses prior to starting your monthly account reconciliations.

Expense Categorization