Transactions are automatically added to your ZipBooks account when you link your bank account. As that happens, it’s important to take a minute to categorize and confirm each transaction. This allows ZipBooks to know what the transaction is for, and then include it in the appropriate place in your financial reports. Doing this on a regular basis will keep your books up to date and will also get the Smart Categories to work in your favor!

When you see a new transaction, first assign it a category. Choose the category field, and start typing to narrow down the list of possible categories, or just scroll down until you find the one you want to use. For example, if it is an expense transaction, ZipBooks will display it in red, indicating that money has left your bank account. Tell ZipBooks what that money was for. It might be travel expenses, supplies, etc. Then simply confirm the transaction by clicking on the green checkbox next to the transaction, and you are all set!

Likewise, a green transaction, indicating money that came into the account, will require an income category to explain where the money came from.

As you categorize your transactions, ZipBooks will learn your category preferences. You will see the ZipBooks guess, along with the % of accuracy projected. This will save you time in the long run, as the program learns your transaction habits.

Confirming your transactions (making sure that the green checkmark is checked) tells the system that you have examined your transaction and verified that it is both accurate and correctly categorized, adn ready to be included in your reporting.

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