Categorizing transactions helps you understand what the money coming in, or going out of your account is for. Learn how to manually categorize a transaction, or change the category of a transaction if it is incorrectly categorized.
To learn more about how Wave automatically categorizes transactions see Automated bookkeeping with auto-updates.
Categorizing transactions in Wave helps you to track the amount under a specific account in your reports. For example, if you have multiple transactions categorized to the same expense account, the reports will help you understand the total amount spent on that expense over a certain period. If a transaction is not categorized, it will show on your reports as Uncategorized Income or Uncategorized Expense. Learn more about the reports available in Wave in Understanding your Reports page.
Manually categorize a transaction
- Navigate to Accounting > Transactions, and locate the transaction.
- Click the Category field of the transaction, and select an account from the dropdown menu.
If you don’t find an appropriate option in the list, create a custom account under Chart of Accounts by clicking on Add a new category at the bottom of the Category dropdown menu.
Change the category of a transaction that was automatically categorized
- Navigate to Accounting > Transactions, and locate the transaction with the incorrect category.
- Click the auto-updates icon to the right of the transaction.
- Click Change Category from the dropdown menu.
- Select a new category, then click Save.