Categorising Transactions in Zoho books

Bank Feeds

Bank Statement imports

Some organisations may not prefer to automate import of bank statements. For them, Zoho Books also has the import feature. Now import your bank statements by uploading PDF, CSV or excel files (XLS/XLSX). The import statement and bank feeds features are quite similar. Transactions imported from both these features land in the uncategorised section. Again one has to categorise these transactions by mapping them to an account.

Manually Added Entries

In case your organisation still issues cheques, you may see manually added transactions every now and then. In such cases the date of issue of cheque and date of debit from the account are different. On the date of issue of cheque, we enter the transaction in Zoho books. In such case it shows the transaction as “manually added”. You certainly need to reconcile your bank accounts if passing manually added transactions.

Categorised Transactions

Categorising transactions in Zoho Books – On completion of import of transactions, one needs to categorise them. Do this by mapping the transactions in the respective accounts. Example: Travelling expenses through Uber would go to travel expenses account or conveyance account. On correct mapping of the transactions, they show up in the profit and loss account or the balance sheet. Once you categorise the uncategorised entries their status changes to “Categorised”. This happens incase of bank feeds as well as import of statements.

Bank Reconciliation

Bank reconciliation is the process of matching the balances of the bank account in the books of the entity with the actual bank statement. The goal of this process is to find the differences between the two, and to correct or make changes to the records as appropriate. Other than matching of balances, bank reconciliations have many other uses. Bank reconciliations also help in identification of errors.. Learn in detail about Bank reconciliation in Zoho Books from here.