Monzo auto tax pot deemed an expense on QuickBooks. Should I turn this feature off on the bank?

Hi there, lisa-smith-btcpe.

Thank you for visiting the QuickBooks Community. I'll share details on how bank transactions work in QuickBooks Online. I'll also make sure your transactions categorize properly in QBO.

Please know that the downloaded data in QuickBooks depends on the information shared by the financial institution. In this case, once the transaction has been classified as an expense by Monzo, the same classification will appear on the QBO.

If you mean that the downloaded tax entry is appearing in the Spent column and you don't want it to, I suggest excluding the transaction and manually adding the transaction instead. Furthermore, if you're unsure how to categorise the tax entry, I recommend consulting an accountant. They'll be able to provide suggestions on how to correctly handle the transactions, particularly the category to use for taxes and how to record it in QBO.

On the other hand, QuickBooks has the option of automatically categorizing bank transactions. If the mentioned option is enabled and you do not want your entries to be categorised as an expense, you can disable it.

Here's how:

1. Go to the Bookkeeping menu and then select Rules.
2. Locate the specific entry and click the drop-down arrow under the Action column.
3. Choose Disable.
4. Go to the Transactions tab and click the mini Gear icon.
5. Uncheck Enable suggested categorization.
6. Click the mini Gear icon again to save the setting.

After that, your transaction will no longer be directly added or matched as expense in QBO. Then, you'll now have the option to update the category of the imported transaction to ensure everything is correct. I've attached a screenshot below for visual reference.

Lastly, I'm adding this article if you need help on how to reconcile your account to avoid any discrepancies: Reconcile an account in QuickBooks Online.

Stay in touch with me if you have other concerns about managing your bank entries by commenting below. I'm always right here to help you, lisa-smith-btcpe. Stay safe.

Hi @lisa-smith-btcpe 

Monzo Pots (Starling Spaces, somebody else's Jars) are simply subaccounts of the main account.

If you set it up in QBO as a subaccount of Bank Account (or even a separate Bank Account) then classify the auto-sweeps as Transfers in QBO that will make everything correct.

Hope this helps.