Why do I have Uncategorized Income?

Hi there, 

Congrats on your first post in the Community. I'd be glad to share more info about Uncategorized income in QBO. 

When banking transactions are downloaded into QuickBooks Online, QBO can’t always figure out how to categorize the transaction. In that case, QBO assigns the Uncategorized Income account to amounts received and the Uncategorized Expense account to amounts paid.To avoid this, you'll need to categorize the transactions and I'll show you how. In the future, if you ever see Uncategorized Income in the “Category or Match” column, you should select the appropriate category (or account from your chart of accounts).

Here's how to categorize the transactions

1. On the Banking page, select the For Review tab.
2. Select the checkbox for each transaction to which to assign the same payee, category, class, or location. You can easily select multiple rows by selecting the first, holding down shift, and selecting the last.
3. From the Batch Actions drop-down menu, select Modify Selected.
4. Use the fields in the Modify Selected dialog to specify the Payee, Category, Class, or Location to assign to all of the selected transactions.
5. The Class and Location fields only appear if you have set up classes or locations on the Account and Settings (or Company Settings) Advanced tab.
6. Select Apply. 

For more info on how to handle transactions, check out this helpful link: Assign, categorize, edit, and add your downloaded banking transactions.

Let me know if you have other questions. 

I had to post because this issue has been driving me nuts for WEEKS! I finally realized that I had un-checked "Require Accounts "in the company accounting preferences. 

Making sure that preference was selected fixed it, so now (once again), I am warned if a transaction doesn't balance, rather than QB forcing the balance through the uncategorized account.