> ## Documentation Index
> Fetch the complete documentation index at: https://docs.ai2fin.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Smart categorization — automatic AI expense classification

> AI2Fin automatically sorts your bank transactions into the right expense categories, learns from your corrections, and gets more accurate over time. Bulk-categorize, review suggestions, and stay in control.

## Navigating Smart Categorization

AI2Fin's Smart Categorization automatically sorts your financial transactions into the right expense categories, so you spend less time on data entry and more time understanding your money. It learns from your corrections and keeps getting better. Learn how to navigate and use this powerful feature effectively.

<Card title="Access Smart Categorization" icon="brain" href="https://app.ai2fin.com/#/all-transactions" horizontal>
  Navigate to All Transactions to access AI categorization features.
</Card>

## How to Access Smart Categorization

### Primary Navigation Path

<Steps>
  <Step title="Open Sidebar Navigation">
    Click the hamburger menu (☰) on mobile or use the sidebar on desktop to access the main navigation.
  </Step>

  <Step title="Navigate to Analysis & Management">
    In the sidebar, find the "3. Analysis & Management" section with the output icon.
  </Step>

  <Step title="Click All TXns">
    Click on "All TXns" (All Transactions) to access the main transaction management page where AI categorization happens.
  </Step>
</Steps>

### Alternative Access Methods

<Columns cols={2}>
  <Card title="Dashboard Quick Access" icon="dashboard">
    **From Dashboard:**

    1. Go to Dashboard (top of sidebar)
    2. Look for "Recent Transactions" widget
    3. Click "View All" or transaction count
    4. Access categorization features
  </Card>

  <Card title="Direct URL Access" icon="link">
    **Direct Navigation:**

    * URL: `https://app.ai2fin.com/#/all-transactions`
    * Bookmark for quick access
    * Use browser back/forward buttons
  </Card>
</Columns>

## Understanding the All Transactions Interface

### Main Page Layout

<AccordionGroup>
  <Accordion title="Page Header & Controls">
    **Top Section:**

    * **Page Title**: "All Transactions" with transaction count
    * **Search Bar**: Search transactions by description, amount, or merchant
    * **Filter Controls**: Date range, category, amount filters
    * **View Toggle**: Switch between list view and categorized view
    * **Column Customization**: Show/hide transaction columns
  </Accordion>

  <Accordion title="Transaction List Area">
    **Main Content:**

    * **Transaction Table**: All transactions in chronological order
    * **AI Status Indicators**: Shows which transactions need AI categorization
    * **Action Buttons**: Edit, categorize, delete for each transaction
    * **Bulk Actions**: Select multiple transactions for batch operations
    * **Pagination**: Navigate through large transaction lists
  </Accordion>
</AccordionGroup>

### Navigation Elements

<Columns cols={2}>
  <Card title="Sidebar Navigation" icon="menu">
    **Main Sections:**

    * Dashboard (top)
    * 1. Inputs (Bank Transactions, Email)
    * 2. Personalize (Categories, Custom Rules, Allocations)
    * 3. Analysis & Management (All TXns + sub-items)
    * 4. Reports and Trends (Insight+, Tax Export, AI Assistant)
  </Card>

  <Card title="Sub-Navigation" icon="list">
    **Under All TXns:**

    * Expenses (One-time) - Blue dot icon
    * Patterns (Recurring) - Orange repeat icon
    * Travel Expenses - Car icon
    * All accessible from main All TXns page
  </Card>
</Columns>

## Using AI Categorization Features

### Finding Uncategorized Transactions

<Steps>
  <Step title="Access All Transactions">
    Navigate to "3. Analysis & Management" → "All TXns" in the sidebar.
  </Step>

  <Step title="Identify Uncategorized Items">
    Look for transactions with:

    * Empty category field
    * "Uncategorized" label
    * AI suggestion indicators
    * Different colored status indicators
  </Step>

  <Step title="Use AI Categorization">
    Click the AI categorize button (brain icon) on individual transactions or use bulk operations.
  </Step>
</Steps>

### AI Categorization Interface Elements

<AccordionGroup>
  <Accordion title="Individual Transaction Actions">
    **Per Transaction:**

    * **AI Categorize Button**: Brain icon next to each transaction
    * **Category Dropdown**: Shows AI suggestions with confidence levels
    * **Edit Button**: Modify transaction details manually
    * **Delete Button**: Remove a transaction from your list
    * **Status Indicators**: Visual cues for categorization status
  </Accordion>

  <Accordion title="Bulk Operations">
    **Multiple Transactions:**

    * **Select Checkboxes**: Choose multiple transactions
    * **Bulk AI Categorize**: Process multiple transactions at once
    * **Bulk Edit**: Modify multiple transactions simultaneously
    * **Bulk Delete**: Remove multiple transactions
    * **Select All**: Select all visible transactions
  </Accordion>
</AccordionGroup>

## Navigation Tips & Shortcuts

### Efficient Navigation

<CardGroup cols={2}>
  <Card title="Keyboard Shortcuts" icon="keyboard">
    * **Ctrl + T**: Go to All Transactions
    * **Ctrl + D**: Go to Dashboard
    * **Ctrl + F**: Focus search bar
    * **Esc**: Close dialogs/modals
  </Card>

  <Card title="Quick Actions" icon="bolt">
    * Use dashboard widgets for quick access
    * Bookmark frequently used pages
    * Use browser back/forward buttons
    * Mobile: Swipe gestures for navigation
  </Card>
</CardGroup>

### Mobile Navigation

<AccordionGroup>
  <Accordion title="Mobile Interface">
    **Mobile Features:**

    * **Hamburger Menu**: Tap to open/close sidebar
    * **Touch-Friendly**: Large buttons and touch targets
    * **Swipe Navigation**: Swipe between transaction views
    * **Responsive Design**: Optimized for mobile screens
    * **Offline Support**: Basic functionality without internet
  </Accordion>

  <Accordion title="Mobile-Specific Navigation">
    **Mobile Optimizations:**

    * **Collapsed Sidebar**: Icons-only mode for space efficiency
    * **Bottom Navigation**: Quick access to main features
    * **Pull-to-Refresh**: Refresh transaction data
    * **Infinite Scroll**: Load more transactions automatically
  </Accordion>
</AccordionGroup>

## How It Works

### What happens behind the scenes

<Steps>
  <Step title="Transaction Analysis">
    AI2Fin reads each transaction — the merchant, the description, the amount, and how it fits your usual spending — to understand what it is.
  </Step>

  <Step title="Pattern Recognition">
    It recognises familiar merchants and spending patterns, so similar transactions get sorted consistently every time.
  </Step>

  <Step title="Confidence Levels">
    Each suggestion comes with a confidence level so you know what to trust at a glance:

    * **High confidence:** categorized for you automatically
    * **Medium confidence:** suggested, ready for a quick confirm
    * **Lower confidence:** flagged for your review
  </Step>

  <Step title="Learning & Improvement">
    Every time you confirm or correct a category, AI2Fin learns — so it gets more accurate the more you use it, tuned to your business and your habits.
  </Step>
</Steps>

### Categorization Methods

<AccordionGroup>
  <Accordion title="Merchant-Based Categorization">
    **AI Recognition:**

    * Identifies merchant names from transaction descriptions
    * Maps merchants to appropriate categories
    * Handles variations in merchant naming

    **Examples:**

    * "WOOLWORTHS" → Groceries
    * "OFFICEWORKS" → Office Supplies
    * "UBER TRIP" → Travel & Transport
    * "ADOBE SYSTEMS" → Software & Subscriptions
  </Accordion>

  <Accordion title="Description Analysis">
    **Natural Language Processing:**

    * Parses transaction descriptions
    * Extracts key terms and context
    * Identifies transaction purpose

    **Pattern Matching:**

    * Recognizes common business terms
    * Identifies expense types
    * Distinguishes business vs personal
  </Accordion>

  <Accordion title="Amount-Based Logic">
    **Transaction Analysis:**

    * Amount ranges for different expense types
    * Round number patterns (subscriptions)
    * Frequency analysis (recurring bills)

    **Smart Suggestions:**

    * High-value transactions → Equipment/Assets
    * Regular amounts → Subscriptions/Bills
    * Variable amounts → Variable expenses
  </Accordion>
</AccordionGroup>

## Using Smart Categorization

### Automatic Categorization

<Info>
  High-confidence transactions are automatically categorized without requiring user intervention.
</Info>

<Columns cols={2}>
  <Card title="Auto-Categorized Transactions" icon="check-circle">
    **Categorized for you when:**

    * The merchant is clearly identified
    * It matches an established pattern
    * You've accepted similar suggestions before
    * Confidence is high
  </Card>

  <Card title="Review Required" icon="exclamation-triangle">
    **Flagged for you when:**

    * It's a new merchant or pattern
    * The description is ambiguous
    * It could be business or personal
    * Confidence is lower
  </Card>
</Columns>

### Manual Review Process

<Steps>
  <Step title="Access Uncategorized Transactions">
    1. Go to All Transactions
    2. Filter by "Uncategorized"
    3. Review AI suggestions
  </Step>

  <Step title="Review AI Suggestions">
    1. Check suggested category
    2. Review confidence level
    3. Examine reasoning
    4. Accept or modify
  </Step>

  <Step title="Provide Feedback">
    1. Accept correct suggestions
    2. Correct wrong categorizations
    3. Add business context
    4. AI learns from feedback
  </Step>
</Steps>

### Bulk Categorization

<Card title="Bulk Operations" icon="layers">
  Process multiple transactions at once for faster categorization of similar transactions.
</Card>

<AccordionGroup>
  <Accordion title="Bulk AI Categorization">
    **Process:**

    1. Select multiple transactions
    2. Click "Bulk AI Categorize"
    3. Review AI suggestions
    4. Apply to selected transactions

    **Benefits:**

    * Faster processing
    * Consistent categorization
    * Reduced manual effort
    * Pattern recognition
  </Accordion>

  <Accordion title="Bulk Manual Assignment">
    **When to Use:**

    * Similar transaction types
    * Same merchant/category
    * Batch corrections
    * New category setup

    **Process:**

    1. Select transactions
    2. Choose category
    3. Apply to all selected
    4. AI learns from bulk actions
  </Accordion>
</AccordionGroup>

## Category Management

### Default Categories

AI2Fin comes with comprehensive default categories optimized for businesses worldwide:

<Columns cols={2}>
  <Card title="Office & Admin" icon="building">
    **Categories:**

    * Office Rent & Utilities
    * Office Supplies
    * Equipment & Furniture
    * Professional Services
    * Insurance
  </Card>

  <Card title="Technology" icon="laptop">
    **Categories:**

    * Software & Subscriptions
    * Hardware & Equipment
    * Internet & Phone
    * IT Services
    * Cloud Services
  </Card>

  <Card title="Marketing & Sales" icon="megaphone">
    **Categories:**

    * Advertising & Promotion
    * Marketing Materials
    * Events & Networking
    * Website & Design
    * Sales Tools
  </Card>

  <Card title="Travel & Transport" icon="car">
    **Categories:**

    * Vehicle Expenses
    * Fuel & Maintenance
    * Public Transport
    * Accommodation
    * Meals & Entertainment
  </Card>
</Columns>

### Custom Categories

<Steps>
  <Step title="Create Custom Category">
    1. Go to Categories page
    2. Click "Add Category"
    3. Enter category name and description
    4. Set tax deductibility status
  </Step>

  <Step title="Configure Category Rules">
    1. Add keywords for auto-categorization
    2. Set business use percentage
    3. Configure GST settings
    4. Add notes or instructions
  </Step>

  <Step title="Train AI on New Category">
    1. Manually categorize examples
    2. Provide feedback on AI suggestions
    3. AI learns category patterns
    4. Improves accuracy over time
  </Step>
</Steps>

## Advanced Features

### Business Use Percentage

<Card title="Automatic Business Use Calculation" icon="percent">
  AI automatically calculates business use percentages for mixed business/personal expenses.
</Card>

<AccordionGroup>
  <Accordion title="Vehicle Expenses">
    **Calculation Methods:**

    * Logbook method (12-week periods)
    * Cents per km method
    * Business trip tracking
    * Automatic percentage calculation

    **Tax Compliance:**

    * Maintains detailed records
    * Calculates legitimate deductions
    * Generates compliant reports
    * Supports audit requirements
  </Accordion>

  <Accordion title="Home Office Expenses">
    **Eligible Expenses:**

    * Rent and utilities (proportionate)
    * Internet and phone bills
    * Office equipment and furniture
    * Cleaning and maintenance

    **Calculation:**

    * Floor area percentage
    * Time-based allocation
    * Usage tracking
    * Automatic apportionment
  </Accordion>
</AccordionGroup>

### Tax Deductibility Analysis

<Columns cols={2}>
  <Card title="Automatic Deduction Detection" icon="receipt">
    **AI Identifies:**

    * Tax-deductible expenses
    * Business-related purchases
    * Tax-compliant deductions
    * Potential audit flags
  </Card>

  <Card title="Compliance Checking" icon="shield-check">
    **Validation:**

    * Tax requirement compliance
    * Receipt verification
    * Business purpose validation
    * Documentation completeness
  </Card>
</Columns>

## Accuracy & Speed

### Gets smarter the more you use it

<AccordionGroup>
  <Accordion title="Accuracy that improves over time">
    Smart Categorization starts working from day one and keeps getting better as you use it. {/* VERIFY: confirm any accuracy figures before publishing specific numbers */}

    **What makes it more accurate for you:**

    * Confirming and correcting suggestions teaches it your preferences
    * Higher transaction volume gives it more to learn from
    * A clear, consistent category structure helps it match reliably
    * Adding business context in your preferences sharpens results
  </Accordion>

  <Accordion title="Fast, even on large histories">
    **Built for real-world use:**

    * Categorizes transactions quickly as they come in
    * Handles bulk categorization across long date ranges
    * Stays responsive whether you have a few months or years of history
    * Keeps improving as you keep using it
  </Accordion>
</AccordionGroup>

### Quality Assurance

<Steps>
  <Step title="Confidence Scoring">
    AI provides confidence levels for each categorization suggestion.
  </Step>

  <Step title="Human Review">
    Low-confidence transactions are flagged for manual review.
  </Step>

  <Step title="Feedback Loop">
    User corrections improve AI accuracy over time.
  </Step>

  <Step title="Continuous Improvement">
    AI model updates based on user feedback and patterns.
  </Step>
</Steps>

## Best Practices

### Optimizing AI Performance

<CardGroup cols={2}>
  <Card title="Provide Feedback" icon="thumbs-up">
    Regularly review and correct AI suggestions to improve accuracy.
  </Card>

  <Card title="Use Consistent Categories" icon="list">
    Maintain consistent category naming and usage patterns.
  </Card>

  <Card title="Add Business Context" icon="info-circle">
    Include business purpose notes for ambiguous transactions.
  </Card>

  <Card title="Regular Reviews" icon="calendar">
    Schedule regular categorization reviews for accuracy.
  </Card>
</CardGroup>

### Category Optimization

<AccordionGroup>
  <Accordion title="Category Structure">
    **Best Practices:**

    * Use specific, descriptive names
    * Avoid overly broad categories
    * Group related expenses logically
    * Maintain consistent naming

    **Structure Tips:**

    * 20-30 categories maximum
    * Clear hierarchy levels
    * Business-relevant groupings
    * Tax-compliant naming
  </Accordion>

  <Accordion title="Training the AI">
    **Effective Training:**

    * Categorize examples manually
    * Provide clear feedback
    * Use consistent patterns
    * Review AI suggestions regularly

    **Training Tips:**

    * Start with clear examples
    * Correct errors immediately
    * Explain business context
    * Monitor accuracy metrics
  </Accordion>
</AccordionGroup>

## Troubleshooting

<AccordionGroup>
  <Accordion title="AI Not Categorizing">
    **Possible Causes:**

    * Insufficient training data
    * New merchant patterns
    * Ambiguous descriptions
    * Service connectivity issues

    **Solutions:**

    * Provide more examples
    * Add merchant keywords
    * Improve descriptions
    * Check service status
  </Accordion>

  <Accordion title="Incorrect Categorizations">
    **Common Issues:**

    * Wrong category suggestions
    * Mixed business/personal
    * Unclear transaction purpose
    * New expense types

    **Solutions:**

    * Correct and provide feedback
    * Add business context
    * Create custom categories
    * Train AI with examples
  </Accordion>
</AccordionGroup>

***

**Ready to experience smart categorization?** Visit the [All Transactions](/guides/transaction-management) page or explore [Pattern Analysis](/features/pattern-analysis) for related features.

*AI2Fin's Smart Categorization - Where artificial intelligence meets financial organization.*