How to Categorize Transactions in the New QuickBooks Online (July 2025 Update)

If navigation within QuickBooks Online suddenly feels unfamiliar, you’re not alone. With the July 2025 update, QuickBooks rolled out one of its most significant interface changes in years, moving core workflows away from traditional tabs and into a new interface based on AI-powered bank feeds.

The impact has been substantial—Intuit reports that 45% of users surveyed are saving up to 12 hours each month on bookkeeping thanks to the improved bank feed interface. That’s great news for efficiency. But if you’re feeling a little lost, know that adjusting to a redesigned platform—especially one that changes where you do your day-to-day work—takes time. As your trusted QuickBooks Solution Provider, we’re here to help you feel confident navigating the new QBO layout and workflows.]

Why Your Transactions Aren’t Clearing in the Expense Transactions Page

One of the most common points of confusion we’ve encountered lately is where to go to categorize transactions.

At first glance, the workflow might seem straightforward: click the “Expenses and Pay Bills” button on the home screen, which leads to the Expenses & Bills Overview. From there, you might naturally head into the “Expense Transactions” section via the left-hand navigation, expecting that this is where your bank activity lives. But after assigning categories, you’ll quickly notice that those transactions remain on the list—no matter what you do. That’s because this section isn’t tied to your connected accounts. It’s actually built for reviewing and managing manually entered expenses or those generated through bill payments. To properly categorize your bank and credit card transactions, you’ll need to take a different route. Let’s walk through that process.

Where to Go to Categorize Transactions in the New QuickBooks Online Interface

To properly categorize transactions in the updated AI version of QuickBooks Online, start on the home screen (click the QuickBooks logo in the top left corner if you’re not already there). From there, select “Accounting” from the ribbon menu at the top center.

This takes you directly to the Bank Transactions page, which houses your imported banking and credit card activity. One quick way to confirm you’re in the right place? Look to the far right of each transaction—here, you’ll see a “Post” or “Match” option. This indicator is absent from the Expense Transactions page and is a key sign that you’re working within the proper bank-feed environment for categorization. 

Once you’ve reviewed and categorized each transaction here, hitting “Post” or “Match” finalizes the entry and removes it from your queue, ensuring your records stay accurate and up to date.

Tip: Matching is important if the transaction was already in QuickBooks, as posting could duplicate the transaction.

QuickBooks Online Is Changing—Here's How to Future-Proof Your Workflow

We reported last month that QuickBooks Online users would no longer be able to revert back to the previous version after September 30, 2025. However, it appears that some users still see the option to switch. If you’re one of them, look just above your list of transactions on the Bank Transactions page—you may notice a small line of hyperlinked text that reads “Switch to previous version.”

Clicking this will take you back to the pre-July 2025 layout, if your account still allows it. Need a refresher on how to revert? We outlined the process step-by-step in this article, under the header “How to Revert Back to the Pre-July 2025 Version of QuickBooks Online.”

While reverting may help speed up your month-end close today, it’s worth investing a little time to get comfortable with the new system. You can start by exploring training materials available directly from QuickBooks. For more hands-on support, reach out to our team to schedule a personalized, one-on-one virtual QuickBooks Online training session designed around your unique business needs. Our team of QuickBooks experts is here to make the transition smoother—and as Insightful Accountant’s 2025 QuickBooks ProAdvisor of the Year, we’re proud to support business owners like you every step of the way.