24 November 2025

How to Undo Excluded Transactions in QuickBooks

QuickBooks is one of the most widely used accounting software applications for small businesses, offering flexibility and control over financial records. One of its intuitive features is the ability to categorize and exclude bank transactions during the reconciliation process. However, there may be times when a user excludes a transaction by mistake, affecting financial reporting and ledger accuracy. Understanding how to properly undo excluded transactions is critical for maintaining clean financial records and ensuring accurate bookkeeping.

TLDR: How to Undo Excluded Transactions in QuickBooks

If a transaction was accidentally excluded in QuickBooks, it can be undone by navigating to the Excluded tab within the Banking section. From there, you can select the transaction and choose to Undo it, which will return it to the For Review tab. Once it’s reverted, you can properly categorize or match the transaction. Always double-check the excluded transactions a second time before ending a reconciliation session to avoid future discrepancies.

Understanding Excluded Transactions

When a transaction is marked as “excluded” in QuickBooks, it means the software will ignore that transaction for all purposes, including reconciliation, reports, and taxes. This is often done to avoid duplicates, remove potential errors, or ignore irrelevant bank activity—such as a personal transaction mistakenly downloaded into a business account.

But what if a transaction is excluded in error?

Excluding a valid business-related transaction can skew your financial records and even lead to balance discrepancies or IRS audit red flags. Therefore, knowing how to locate and reverse these exclusions efficiently is essential.

Common Reasons for Accidental Exclusion

• Mistakenly excluding a valid transaction while cleaning up bank feeds
• Misidentifying a deposit or expense as a duplicate
• Bulk excluding multiple transactions without a proper review
• Using automation features or bank rules that incorrectly flag the item

How to Undo an Excluded Transaction in QuickBooks

Luckily, QuickBooks makes it fairly simple to restore excluded transactions. While the navigation may vary slightly depending on the version (Online, Desktop, Self-Employed), the following steps apply primarily to QuickBooks Online.

Step-by-Step Guide: Undoing an Excluded Transaction

1. Log in to your QuickBooks Online account.
2. Go to the Banking or Transactions menu on the left-hand navigation pane.
3. Select the specific bank or credit card account associated with the transaction.
4. Click on the Excluded tab. This will show all the transactions you’ve previously excluded.
5. Identify the transaction you need to bring back. Use filters or dates to narrow your search if necessary.
6. Select the checkbox next to the transaction you want to undo.
7. Click the Undo button at the top of the list.

This action moves the transaction back to the For Review tab, where you can then categorize, match, or further modify it.

Important Notes:

• Undoing an excluded transaction does not automatically categorize or approve it—it must still be reviewed.
• If the transaction was excluded based on a rule, the same rule might exclude it again. You may need to adjust your bank rules afterward.

Handling Multiple Transactions

If you’ve excluded several transactions by mistake, QuickBooks allows you to bulk undo those entries rather than restoring each one individually. Here’s how you do it:

1. While in the Excluded tab, use the checkboxes to select multiple transactions you want to restore.
2. Click Batch Actions or the Undo button depending on your version of QuickBooks.

This restores all selected items to the For Review panel.

What Happens After You Undo a Transaction?

Once a transaction is un-excluded and sent back to For Review, QuickBooks treats it like a new imported item. You’ll need to:

• Match it to an existing entry if it duplicates a manual record
• Categorize it correctly under the appropriate account (e.g., utilities, office expenses, revenue)
• Optionally split it between multiple categories if necessary

This ensures your ledger and bank register stay aligned and reconcilable.

Implications on Reporting and Reconciliation

When working on financial reports like the Profit and Loss Statement or the Balance Sheet, missing or misclassified transactions can significantly distort your results. Undoing an excluded transaction gets it back into circulation, allowing it to be properly accounted for.

Reconciling your bank statements could also become easier when all entries are present. Missing transactions might otherwise create unexplained variances between your bank and book balances. After you undo, categorize the entry properly and rerun any reconciliation reports to ensure everything balances as expected.

Best Practices to Avoid Accidental Exclusion

While QuickBooks provides robust tools for managing bank feeds and memorized rules, errors still happen. To minimize the chance of excluding valuable data:

• Double-check batch selections before marking transactions as Excluded
• Regularly review the Excluded tab to identify any anomalies
• Only use bank rules when you’re confident they are correctly set up
• Consult your accountant before excluding unusual or unfamiliar transactions

Using QuickBooks Desktop: A Note

In QuickBooks Desktop, excluded transactions work a little differently. There’s not a direct “excluded” tab in the same style as QuickBooks Online. Instead, you may deal with transactions that have been matched incorrectly or skipped entirely through an import. If you identify a transaction that shouldn’t have been deleted or matched, consult your previous backups, or adjust entries manually through your register.

Quick Troubleshooting Tips

Missing Undo Button?

If the Undo option is not visible in the Excluded tab, make sure you’re in the correct transaction feed and that you’re using a supported browser. Occasionally, browser compatibility issues can affect how buttons display or function.

Still Can’t Find the Transaction?

If the transaction is no longer visible in any tab, it’s possible it was permanently deleted or hasn’t been downloaded yet from your bank feed. Re-sync your bank connection or manually import the data again.

Conclusion

Managing exclusions in QuickBooks shouldn’t be a daunting task, but it does require attention to detail and periodic reviews. By learning how to properly undo excluded transactions, categorizing them afterward, and staying alert to automation rules that may misclassify, you take critical steps to keep your books clean, accurate, and audit-friendly.

Consistent monitoring of the Excluded tab and understanding the implications that misclassified transactions have on your reporting will help you avoid costly mistakes. Whether you’re a small business owner or an accounting professional, treating exclusion and transaction accuracy with the seriousness it deserves is essential for long-term financial success.