Financica uses AI to analyze your transactions and suggest which ledger accounts they should be assigned to. This saves time on repetitive categorization work while keeping you in full control. Categorization is a batch flow: you pick the transactions, generate suggestions, review and correct them, and apply only the ones you approve.
How it works
- Select transactions — In the transactions list, select the transactions you want categorized.
- Open "Auto categorize" — This opens the review dialog and starts generating suggestions.
- Review — Each row shows the date, description and amount, the suggested account, a one-sentence reason, and how your books have handled similar transactions before.
- Correct anything wrong — Click the suggested account to pick a different one. Correcting an account also approves that row.
- Apply — Apply the approved rows. Nothing else is touched.
What the suggestions are based on
The strongest signal is your own history. Before suggesting anything, Financica looks for transactions you have already categorized with a similar description or counterparty, and shows them under the suggestion as "Previously: …".
Where a description has appeared before and always went to the same single account, Financica assigns it directly without asking the model at all — the amount always comes from the transaction in front of it, never scaled from the earlier one.
Reviewing suggestions
For each transaction, the dialog presents:
- The suggested account — Click it to change it. Any account in your chart is available.
- The reason — A short explanation naming the evidence behind the choice.
- Precedents — What similar transactions in your books were categorized as.
- Confidence — How reliable the suggestion is. It reflects the evidence, not just the model's own opinion: a suggestion that contradicts your history, creates a new account, or lands on an uncategorized account is marked down.
- Warnings — Cautions worth reading before approving.
Transactions Financica could not handle confidently are listed at the bottom, by description, with the reason. Nothing is silently changed.
Splits
Most transactions get one account. Where a transaction genuinely splits — a payout net of fees, a bill covering two cost types — the suggestion shows every leg. Split suggestions are not editable in the dialog; approve it as-is, or leave it and adjust the transaction directly.
Important notes
- AI never auto-applies — Suggestions take effect only when you approve them and click apply. Your accountant always has the final say.
- The bank side is never changed — Only the category side of a transaction is proposed. The imported bank or payment leg stays exactly as it was recorded.
- Invoice legs stay put — Where a transaction carries legs a posted invoice owns (its VAT, its payable), those are left exactly as they are and only the open category leg is proposed. A transaction made up of nothing else is skipped, with a note to categorize the invoice's lines instead.
- Organization-specific — The AI works from your organization's own data. It does not share patterns between different organizations.