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in this video youre going to learn how to categorize your income and expenses so here we are in the bank review window and before we start categorizing you should know that quickbooks online its actually going to try to help you categorize so a quickbooks online is a pretty smart program so what its going to do is its going to try to help you name the payee and categorize your transactions it will get smarter the longer you use it so in the beginning its not very good at guessing payee names or categorizations so dont assume that because QuickBooks has added in a category that its necessarily correct its up to you to review and change the categories and to check QuickBooks as work as time goes on QuickBooks will start to learn your patterns with your spending and your vendors and your pay ease and thats when the magic really happens and the system will start to do a lot of the work for you but you do have to get through the first month or so doing a lot more manual work than