> 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/common-workflows/categorization.md).

# Categorization

### How it works

When [transactions](/common-workflows/transactions.md) sync into Kick, the AI categorizes approximately 97% of them on the first pass - things like meals, software subscriptions, payroll, rent, and revenue. Your [Profit & Loss](/reports/profit-and-loss.md) updates in real time as transactions are categorized.

When Kick's confidence is low, the transaction is left uncategorized for you to review manually.

***

### Correcting a category

If Kick gets a category wrong, click the transaction and update it. Kick will prompt you to apply the same change to similar transactions - both historical and going forward. Confirming this teaches Kick how to handle that type of transaction in the future.

***

### Rules

For transactions that should always be categorized a specific way, create a Rule. Rules override AI categorization and run automatically whenever a matching transaction syncs.

For example:

* Always categorize Amazon transactions as *Supplies & Equipment*
* Always move Apple charges to a specific business entity and categorize as *Computers*

→ [Rules](/common-workflows/rules.md)

***

### Uncategorized transactions

Uncategorized transactions appear when Kick isn't confident enough to assign a category automatically. Review these regularly - they won't appear on your P\&L until categorized, which means your reports won't be complete until they're cleared.

Filter the Transactions tab by **Status → Uncategorized** to see them all in one place.

***

### Categories vs. General Ledger Accounts

Categories are the plain-language labels you see on your transactions - *Meals & Entertainment*, *Software*, *Payroll*, etc. Each category maps to an account in your chart of accounts, which is what actually drives your financial reports.

For most business owners, you won't need to think about chart of accounts - Kick handles the mapping automatically, but your accountant can adjust the mappings if needed.


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