Question

Best practices for transaction categorization

  • 23 March 2023
  • 3 replies
  • 65 views

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I’d love to hear people’s best practices for making transaction categorization as automated as possible. From my understanding, because Digits requires a transaction to be categorized as an uncategorized expense, income, etc. before it will analyze, has anyone come up with an efficient process for this?

Is it just simply categorizing the transactions that you’re sure about and then all of the ones you’re unsure about just immediately categorizing them to one of your selected accounts to analyze? I’d love it if Digits could analyze and help categorize transactions straight from the bank feed without having to code them first.

Love to hear everyone’s thoughts!


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Userlevel 5
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Looking forward to hearing from other folks as well @Alex Little! I did want to share what I’ve heard from others,  is to make a rule for anything that can’t be classified already to mark it as an “Uncategorized expense” or a different “Uncategorized” bucket. Then, when we will be able to pull in the information and surface suggestions back to you.

One item to clarify is that QuickBooks, unfortunately, does not allow us to get items from the bank feed via the API that’s available. 

 

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Hey @Michael any idea if/when Digits will be able to just connect to client’s bank accounts? Plaid integration?

Userlevel 5
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Hey @Tariq Qasas Plaid integration has been built! From your Digits dashboard click on “Settings” in the lower left corner,  then find the client you want to add Plaid for, click on “Manage” under Integrations and then lastly hit the “+” button under “Integrations” to link things up!

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