If you’ve connected your bank account to Wave to import transactions, you may notice that the transactions are automatically categorized as they import. Auto-categorization saves you time on your accounting so you can focus on what really matters to your business.
Wave will automatically detect what kind of transaction is being imported based on its name or description. For example, if your bank connection imports a transaction called “Gas Station,” Wave will automatically detect that this purchase probably belongs under the category “Vehicle - Fuel.”
Once you've categorized one transaction, Wave can also detect other similar previous transactions, and will ask you if you want to apply that category to all of them. That category will also be applied when more of these transaction types are imported in the future.
What if Wave categorizes my transactions incorrectly?
On the off chance this happens, don’t worry! You can still re-categorize any transactions as needed. When you re-categorize something Wave categorized incorrectly, the system will take this into account and learn how to categorize these types of transactions going forward.
Frequently Asked Questions
What transactions will be categorized?
Wave will automatically detect and categorize all expense transactions that have been imported via a bank connection. It will do this for as many expense transactions as it can, but some may remain uncategorized. Income transactions will not be automatically categorized.
How do I fix incorrectly categorized transactions?
You can categorize any uncategorized transactions, or re-categorize ones that have been automatically categorized if they are incorrect. Wave will remember this is what you chose, and categorize any future transactions this way next time.
For example, if Wave categorized a transaction called “Stop and Shop” as “Vehicle - Fuel” but the purchase was printer paper for your home office, you would re-categorize that purchase as “Office Supplies.” The next time you have a transaction from “Stop and Shop,” Wave will automatically categorize it under Office Supplies.
Can my transactions be auto-categorized if I upload my CSV bank statements instead of connecting my bank account?
At this time, only bank imported transactions can be auto-categorized.