How to Automate Transaction Categorization

Slash's accounting automation features eliminate the manual work of categorizing transactions. By setting up rules that map merchants to accounting categories, every future transaction is automatically sorted into the right bucket, whether it is revenue, cost of goods sold, or an operating expense.

This means your profit and loss statement, expense reports, and financial summaries stay accurate and up to date in real time, without any manual data entry.

What Are Accounting Automations?

Accounting automations are rules you configure on the Accounting Management page that tell Slash how to categorize transactions based on the merchant. When you transact with a merchant that has been mapped to a category, the transaction is automatically tagged.

For example, if you map Nike to a COGS category called "Sneaker Inventory," every future Nike purchase is automatically categorized as inventory cost in your P&L.

How to Set Up Automation Rules

Step 1: Create Your Accounting Categories

Navigate to the [Accounting Management page](https://app.joinslash.com/business/analytics/accounting-management). Click Add Category to create categories like "Inventory," "Shipping," "Software," "Marketing," or "Payroll." Assign each category to Revenue, COGS, or OPEX.

Step 2: Open the Merchant Mapping Rules

Click the Edit button under the Merchant to Accounting Category automation rule. A sidebar opens with two tabs:

• Expenses tab: For mapping merchants to COGS and OPEX categories
• Revenue tab: For mapping merchants to Revenue categories

Step 3: Create Mappings

Click Add Mapping and assign an accounting category. Then add all merchants that should be categorized under that label. For example, under a "Shipping" OPEX category, you might add USPS, FedEx, and UPS.

Step 4: Review and Refine

After setting up your initial mappings, check your P&L page for any uncategorized transactions. Add new mappings until every merchant you regularly transact with is accounted for.

Types of Automations Available

Merchant-to-category mapping: The core automation. Maps specific merchants to accounting categories so transactions are categorized automatically.

Default categorization: Transactions with unmapped merchants can be reviewed and manually categorized, or you can set default rules for certain transaction types.

QuickBooks sync: If you have connected Slash to QuickBooks, your categories and transactions can be synced automatically to your QuickBooks account.

Tips for Effective Accounting Automations

• Be specific with categories."Nike Inventory" is more useful than "Miscellaneous" when analyzing spending.
• Map new merchants promptly. When you start buying from a new vendor, add the mapping right away.
• Review monthly. Check your P&L for uncategorized transactions and clean them up.
• Use consistent naming. Establish a naming convention for categories that your whole team understands.

Frequently Asked Questions

Do automations apply retroactively?

When you create a new mapping, it may recategorize existing transactions from that merchant. Check your P&L after setting up new rules.

Can I map one merchant to multiple categories?

Each merchant maps to one category. If a merchant's transactions span multiple categories, choose the one that represents the majority of spending.

Can I undo a mapping?

Yes. Remove or change a merchant's mapping at any time from the Accounting Management page.

Does this work with QuickBooks?

Yes. If you have connected QuickBooks, categories and mappings sync to your QuickBooks chart of accounts.

Need More Help?

If you have questions about accounting automations or need help configuring your rules, reach out to our support team at support@joinslash.com.