> For the complete documentation index, see [llms.txt](https://docs.kick.co/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.kick.co/accountants/bookkeeping-workflows/categorization.md).

# Categorization

### AI layer

When transactions sync into Kick, the categorization model automatically categorizes \~97% of them on first pass. The model is optimized to get you to a materially correct Profit & Loss as fast as possible, minimizing manual work across all your clients.

Kick also learns from the changes you make. When you update a category, counterparty, class, or other transaction attribute on the Transactions tab, Kick prompts you to apply the same change to similar transactions — both historical and going forward. If confirmed, Kick applies that feedback automatically in the future.

Uncategorized transactions appear when the model's confidence is low and need to be reviewed manually.

***

### Rules layer

Rules give you hard, deterministic control over categorization. You can create multi-condition, multi-action rules to set categories, GL accounts, counterparties, classes, entities, and more. Rules always take priority over AI-based categorization.

Rules are especially useful for complex clients or industries that require highly detailed and consistent financial reporting — or any situation where you need to guarantee a specific outcome regardless of what the AI suggests.

→ [Rules](/accountants/bookkeeping-workflows/rules.md)

***

### How the two layers work together

For most clients, the AI layer handles the bulk of categorization automatically. Rules layer on top to enforce any exceptions, custom mappings, or client-specific logic. Transactions post to the General Ledger in **real time** once categorized.


---

# Agent Instructions
This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com.

## Querying This Documentation
If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://docs.kick.co/accountants/bookkeeping-workflows/categorization.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.