Managing Your Transactions

Effective transaction management is key to maximizing your tax deductions. Learn how to organize, categorize, and maintain your financial records.

Transaction Sources

Transactions come from two places:

• Automatic Import: Bank connections via Plaid (Pro plan)
• Manual Entry: Hand-entered expenses and income

Viewing Transactions

Transaction List

The Transactions page shows all imported transactions:

• Sorted by date (most recent first)
• Shows merchant name, amount, and status
• Filter by month or classification status

Transaction Details

Click any transaction to see:

• Full merchant description
• Transaction date and amount
• Current category and classification
• Notes field

Classifying Transactions

Classification Types

Every transaction should be classified as one of:

• Business: A legitimate business expense or income
• Personal: Not related to business (excluded from reports)
• Unclassified: Needs review

How to Classify

1. Click on a transaction to open details
2. Select the appropriate classification (Business/Personal)
3. If business, choose an IRS category
4. Optionally add notes for context
5. Save your changes

Bulk Classification by Merchant

For recurring transactions from the same merchant (like Starbucks, Amazon, or your internet provider), you can classify them all at once:

1. When classifying a transaction, you'll see an option to apply to all transactions from this merchant
2. Select the category and classification
3. All past and future transactions from that merchant will be classified the same way

This is a huge time-saver for recurring expenses like:

• Monthly subscriptions (software, services)
• Regular purchases from the same vendor
• Recurring business expenses

IRS-Approved Categories

Common business expense categories:

• Advertising: Marketing, ads, promotions
• Car and Truck: Mileage, gas, maintenance
• Insurance: Business insurance premiums
• Office Expense: Supplies, small equipment
• Legal and Professional: Attorney, accounting fees
• Rent or Lease: Office or co-working space
• Other Expenses: Software, subscriptions
• Travel: Flights, hotels, transportation
• Meals: Business meals (50% deductible)
• Utilities: Internet, phone, electricity

Adding Notes

Use the notes field to add context:

• Client or project names
• Business purpose of the expense
• Who attended (for meals)
• Any other relevant details

This helps during tax time and if you're ever audited.

Manual Transactions

When to Use

Add manual transactions for:

• Cash payments
• Expenses from accounts not connected
• Income received by check or cash

How to Add

1. Go to Settings > Manual Transactions
2. Click Add Transaction
3. Enter date, amount, description
4. Select category
5. Save

Managing Manual Transactions

• Edit or delete anytime
• View all in the Manual Transactions section
• Included in reports alongside bank transactions

Handling Common Situations

Mixed Personal/Business Expenses

If an expense is partially business:

• Mark as business
• Note the business portion in the notes field
• Your accountant can help with the exact split

Duplicate Transactions

If you see duplicates:

• Check if it's the same transaction from different accounts
• Mark one as personal or contact support

Missing Transactions

If transactions are missing:

• Check your bank connection status
• Verify the date range filter
• Try manually syncing your bank
• Add as a manual transaction if needed

Best Practices

Regular Review

• Check new transactions weekly
• Classify while details are fresh
• Don't let unclassified transactions pile up

Good Note-Taking

• Be specific about business purpose
• Include client/project names
• Note attendees for meal expenses

Stay Organized

• Keep up with classification monthly
• Export reports for your records
• Back up important receipts

Receipt Requirements

The IRS requires documentation for:

• All expenses over $75
• All lodging expenses (any amount)
• All transportation expenses

Keep receipts organized and attach them to transactions when possible.

Next Steps

• Generating Reports
• Receipt Best Practices
• Tax Preparation Guide