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How to categorize a transaction

1

Go to Transactions

Navigate to Banking → Transactions in the sidebar.
2

Find uncategorized items

Look for the warning banner that tells you how many transactions need categorization. You can also filter by account, date range, category, or search by merchant name.
3

Select a category

Click the Category dropdown on the transaction row and choose the right category from your chart of accounts. Categories are organized in a tree: main categories → subcategories → sub-subcategories.

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How AI categorization works

Cashflowy’s AI (Clara) automatically suggests categories for your transactions based on merchant name, description, and past corrections. You can accept a suggestion or override it by picking a different category from the dropdown. The AI learns from your corrections over time, so categorization gets more accurate the more you use it.
This can save you hours. If you have 50 “STARBUCKS” transactions, categorize one and autocategorize the rest. Do this for your top merchants first and you’ll clear most of your backlog in minutes.

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Tips for staying on top of it

  • Spend 5–10 minutes weekly reviewing new uncategorized transactions
  • Create custom categories in the Chart of Accounts if the defaults don’t fit your business
  • Accurate categories = accurate reports — your P&L and Balance Sheet are only as good as your categorization
Uncategorized transactions won’t appear correctly in your financial reports. Keep that warning banner at zero for the most accurate picture of your business.