To Rule or Not to Rule, that is the Question

Quickbooks has a feature called a Rule. It's purpose is to categorize things automatically for you so it saves you time. We wanted to discuss when this was a good idea and when it's not.

You should set up a rule when any of the following can be applied:

1) That vendor is only one category. For example: You only buy groceries at the grocery store. Let's use Publix. This means you never buy gifts or cleaning supplies or... If it can be more than one category, do not set up a rule.

2) If you do buy more than one thing but know the amount is above a certain criteria. For example: You buy gas or snacks at the gas station. You know that you always spend above twenty dollars for gas. You don't ever spend that much on snacks. You could then enter a rule for snacks at the gas station and gas at the gas station.

3) Subscriptions can be added but if you have more than one with the same vendor (such as apple or a post office box) and one is personal and one is business - you will need to set up two rules.

4) Transfers can be set up if it's clear that the transfer goes from one bank to another in the details of the bank. Sometimes this is not clear.

You should not set up a rule when the following exists:

1) The category isn't always the same. For example: Home Depot could be tools or materials. Those are two separate categories and often cannot be designated by a range above or below.

2) Something could be business or personal. Yes, in an ideal world people only spend for business in the business account and personal in the personal account. However, we aren't living in the ideal world. Soooo.... those vendors shouldn't be set up as a rule.

These are just a few examples we wanted to provide. Have you thought of others? Let us know! You can email us with the details!


1 view0 comments

Recent Posts

See All