Recently the automatic bank update has started to categorise some 'Expense' payments as 'Cheque' when they we regular bank transfers. Why?

I'm here to share some insights about how online banking works, treasurer106.

QuickBooks Online (QBO) is dependent on the information shared by your financial institution. This is the reason you're transactions are being categorised as cheque instead as an expense. For us to correct this, we can categorise the transactions into the correct income and expense account. Changing the transaction type isn't possible in the program.

Aside from that, you can also manually download your bank transaction and edit the transaction type. Then, upload it to your QBO account. Here's how:

1. Log in to your bank or credit card website and download the transactions from there.
2. Ensure the file size and format is supported (maximum file size is 350 KB).
   • Comma-Separated Values (CSV)
   • QuickBooks Online (QBO)
   •  Quicken (QFX)
3. Before uploading it to your QBO account, ensure you’ve already made changes to the transactions such as the transactions type.
4. Then to upload the transactions, go to the Baking or Transactions menu.
5. Select the Banking tab.
6. Locate the select the appropriate bank and click File upload from the Update drop-down menu.

For more details about this process, you can check this article for your reference:  Manually Upload Transactions.

Additionally, I've added an article that'll help you match your QuickBooks accounts to your real-life bank statements. This ensures your books are accurate: Reconcile an Account in QBO.

Reach out to me in the comment below if you have any other questions or concerns. I'll be here to address them. Have a good one!