/answers/how-to-categorize-business-transactions-with-ai/index.md · 42 lines
---
title: "How to categorize business transactions with AI"
description: "Start with the chart of accounts and a few months of transactions that have already been coded correctly, and write down the rules the bookkeeper already follows, such as which suppliers map to which accounts and how to treat splits, transfers and owner spending. AI suggests an account, tax treatment and short reason for each new transaction, learns from corrections, and holds back anything unusual, high value or unclear, such as new payees, round amounts or possible personal spending. The bookkeeper reviews the suggestions in batches and approves them before anything is posted, and the accountant signs off at period end."
url: https://lidvizion.ai/answers/how-to-categorize-business-transactions-with-ai/
site: Lid Vizion
index: https://lidvizion.ai/llms.txt
---
[Direct answers](https://lidvizion.ai/answers/)
# How can a small business or bookkeeper use AI to code bank and card transactions to the right accounts without errors piling up?
Start with the chart of accounts and a few months of transactions that have already been coded correctly, and write down the rules the bookkeeper already follows, such as which suppliers map to which accounts and how to treat splits, transfers and owner spending. AI suggests an account, tax treatment and short reason for each new transaction, learns from corrections, and holds back anything unusual, high value or unclear, such as new payees, round amounts or possible personal spending. The bookkeeper reviews the suggestions in batches and approves them before anything is posted, and the accountant signs off at period end.
## What this means in practice
- Start with the chart of accounts and correctly coded history.
- Write down the coding rules the bookkeeper already follows.
- Suggest an account, tax treatment and reason for each transaction.
- Hold back unusual, high-value or unclear items.
- Have the bookkeeper approve before posting and the accountant sign off at period end.
## How Lid Vizion approaches it
We start with the business decision and operating context, define ownership and measurable milestones, then use configuration, integrations, automation, or custom software only where each earns its place.
## More on Automation & custom AI
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- [How can a clinic, salon or service business use AI to cut missed appointments without annoying customers?](https://lidvizion.ai/answers/how-to-reduce-appointment-no-shows-with-ai/)
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