AI Transaction Categorization:
Frequently Asked Questions

AI transaction categorization uses machine learning to automatically classify bank transactions into accounting categories (like Office Supplies, Travel, or Professional Services). Instead of manually reviewing each transaction and assigning a category, the AI analyzes the merchant name, transaction description, and amount to predict the correct category. This automates one of the most time-consuming parts of bookkeeping.

The AI analyzes multiple data points: merchant name, transaction description, amount patterns, and historical categorization data. It uses natural language processing to understand descriptions like "AMZN*MARKETPLACE" and maps them to appropriate categories. Zera AI is trained on millions of real financial transactions, so it recognizes patterns across thousands of merchants and transaction types.

Zera AI achieves 95%+ accuracy on first-pass categorization for common transaction types. For recurring transactions from known merchants, accuracy approaches 99%. The system also provides confidence scores, so you can quickly review lower-confidence categorizations while trusting high-confidence ones.

Yes. Zera Books maps transactions to standard accounting categories that align with QuickBooks, Xero, and other accounting software. You can also customize category mappings to match your specific chart of accounts. The AI learns your preferences over time, so custom categories become increasingly accurate.

Absolutely. While Zera Books provides GAAP-compliant default categories, you can create custom categories, rename existing ones, and set up rules for specific merchants. For example, you might want all Amazon transactions under $50 categorized as "Office Supplies" while larger purchases go to "Equipment."

When the AI encounters a new merchant, it analyzes the merchant name, MCC code (if available), and transaction description to make an educated prediction. It also considers similar merchants in its training data. New merchants are flagged for quick review, and once you confirm or correct the category, the AI remembers for future transactions.

Yes. Every correction you make improves the AI's accuracy for your specific account. If you recategorize a transaction, the AI remembers that preference and applies it to similar future transactions. Over time, this means fewer corrections and higher accuracy tailored to your business patterns.

Ambiguous transactions (like "SQUARE *SQ" which could be any business) are flagged with lower confidence scores. The AI presents its best guess along with alternative categories, making it easy to quickly select the correct one. You can also set up rules for specific merchants to eliminate ambiguity.

Yes. Zera Books exports categorized transactions in formats ready for QuickBooks Online, QuickBooks Desktop, and Xero. Categories are pre-mapped to match each platform's chart of accounts structure. You can import categorized transactions directly without re-doing the categorization work.

Bank feed rules in QuickBooks/Xero are simple if-then matches: "If merchant contains 'STARBUCKS', categorize as Meals." AI categorization is smarter—it understands context, handles variations, and works on new merchants without manual rule setup. You don't need to create hundreds of rules; the AI handles the complexity automatically.

Yes. For bookkeepers and accountants managing multiple clients, Zera Books maintains separate categorization preferences for each client. The AI learns each client's specific patterns, chart of accounts customizations, and business context. This is particularly valuable for firms with diverse client portfolios.

Absolutely. Zera Books uses bank-level encryption (AES-256) for all data in transit and at rest. We don't store your banking credentials, and transaction data is automatically deleted after 30 days unless you choose to retain it. We're SOC 2 compliant and follow strict data security protocols.

Most users report saving 30-45 minutes per client per month on transaction categorization alone. For a bookkeeper with 20 clients, that's 10-15 hours monthly—essentially eliminating an entire day of categorization work. The time savings compound as the AI learns your preferences.

Mistakes are easy to fix. Simply select the correct category, and the change is applied. The AI learns from the correction and improves for similar future transactions. High-value or unusual transactions are flagged for review, so critical items always get human attention.

Getting started takes just minutes. Upload your bank statement (PDF, CSV, or connect directly), and Zera AI automatically categorizes all transactions. Review the results, make any corrections, and export to your accounting software. There's no training required—the AI works immediately.