How to automate it

How to automate “categorize bank transactions and fix coding”

Here are 2 ways to spend less time on this, best first. Each comes with steps you can follow today.

60 min

typically, every day

75%

of the time can be automated

Easy

to set up

Fix 1 of 2

Software featureBest fix

Set up bank rules so recurring transactions code themselves

QuickBooks Online bank rules, Xero bank rules and their AI matching code recurring transactions automatically, so you only review the exceptions.

Typically saves about 50% of the time1 h to set up

1Look at the last three months for payees that come up again and again.
2Create a bank rule for each (payee contains X goes to account Y, with tax code).
3Turn on auto-add only for rules you trust; leave others as suggestions.
4Review new rules monthly and fix any that mis-code.

Tools: QuickBooks Online bank rules · Xero bank rules · Sage bank rules · FreshBooks

Fix 2 of 2

Software feature

Use AI bookkeeping features to suggest coding and flag issues

QuickBooks Intuit Assist and AI agents, Xero JAX, Booke AI, Keeper and Digits suggest categories, match transactions and flag uncategorised items and client questions.

Typically saves about 45% of the time1 h to set up

1Turn on the AI features in QuickBooks or Xero, or add Booke AI or Keeper for practice-wide review.
2Let it suggest categories and matches; accept in bulk where confidence is high.
3Use its client question lists to ask clients about unknown transactions in one go.
4Spot-check a sample each month.

Tools: QuickBooks Intuit Assist · Xero JAX · Booke AI · Keeper · Digits

Quick wins

Have you tried…

Have you set up bank rules so recurring transactions code themselves?: In QuickBooks or Xero, a bank rule says "anything from this payee goes to this account". Once set, those transactions are coded automatically and you only check exceptions.

Who does this task

Roles in our library that list this as one of their common tasks. Each guide covers the rest of that role’s week.

Accountant / Bookkeeper (firm)

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