What is the purpose of bank rules in QuickBooks Online?

The purpose of bank rules in QuickBooks Online is to automate the categorization of bank transactions based on set criteria. By establishing specific rules, users can streamline their bookkeeping processes. For instance, if recurring transactions occur, such as payments from certain vendors, bank rules can automatically assign the correct categories, thus saving time and reducing the potential for manual entry errors. This automation simplifies the reconciliation process and enhances accuracy, allowing users to quickly see how their finances are evolving without the repetitive task of categorizing each bank transaction individually.

In contrast, restricting withdrawals from bank accounts does not align with the functionality of bank rules. Similarly, while generating reports is an essential feature of QuickBooks, it does not pertain to the automation of transaction categorization. Lastly, manual reconciliation of bank statements is a separate process that involves verifying transactions against bank statements; it is not automated through bank rules.