How to Auto-Categorize Transactions from Your Bank Statement in Minutes

Managing your business finances shouldn’t feel like another full-time job. Yet for many small business owners ,contractors, real estate developers, that’s exactly what happens.

You spend time downloading bank statements and manually categorizing these transactions. It gets more demanding, when you’ve multiple accounts to deal with.

For some, the headache is in paying accountants thousands of dollars to clean up the messy spreadsheets or handle their xero or quickbooks clean up before tax season.

But it doesn’t have to be this way. With AI-powered accounting software you can solve this in minutes without breaking a sweat. Whether you run a contracting business, a construction company, or any small business that relies on accurate financial reports, you can easily get your books fixed, and download reports with a click of a button. Here is how :

Step-by-Step: How Adam by Tyms Auto-Categorizes Transactions

Adam by Tyms is an accounting AI software built to make bookkeeping effortless. Here’s exactly how you can use it:

Step 1: Create an Account with Adam

Create your Adam account here

Step 2: Direct Bank Sync (The Easiest Way)

The fastest way to auto-categorize transactions is through Adam’s direct bank sync feature. Instead of downloading and uploading statements every month, you simply connect your U.S. bank account to Adam.

Adam imports both past and current transactions instantly.
Every payment, deposit, and expense is automatically categorized by AI.
Duplicates or missing entries are flagged for review.

Step 3: Upload Bank Statements (When You Need To)

If you prefer working with statements, Adam also lets you upload PDFs , Excel, or CSVs .

Unlike QuickBooks, which imports everything as raw data, Adam uses AI to categorize each line item automatically.

That $600 payment to “Lowe’s”? Tagged as materials.
That $1,200 Stripe deposit? Categorized as client income.
That monthly SaaS charge? Labeled recurring expense.

Use the ask adam feature, and type this prompt “ Extract my Bank statement transaction and categorize my expenses and income"

Step 4: Connect QuickBooks to Adam by Tyms

If you’re already using QuickBooks, you don’t need to start over. Simply connect QuickBooks to Adam by Tyms account. Adam by Tyms continues where QuickBooks stops, it auto-categorizes transactions, cleaning up “uncategorized” expenses, and giving you accurate reports without manual effort.

This way, you don’t lose QuickBooks but gain true automation. For other alternatives to quickbooks software, like zoho, you would have to refer back to the first option, which is to sync your back account.

Step 5: Automate Receipts from WhatsApp & Email

Receipts aren’t always tied neatly to bank statements. You get them in emails, WhatsApp messages, even screenshots.

Adam automatically pulls receipts from WhatsApp and email, matches them to bank transactions, and attaches them to your records.

At tax time, your receipts are already organized.

You have multiple options on Adam by Tyms, you can either use the Bank sync feature, upload your statement , or connect your existing Quickbooks account.

The end goal is the same. Get started with Adam today and see how much easier bookkeeping can be.

Why Auto-Categorization Matters to Your Business

When your transactions are auto-categorized with Adam:

You save 5–10 hours a week on bookkeeping.
You reduce errors that lead to IRS penalties.
You maximize deductions by never misclassifying expenses.
You get accurate financials to make smarter decisions.

Where Do Accountants Come Into the Picture?

For many small businesses and contractors, accountants usually step in at two points:

End-of-Year Cleanup By tax season, business owners hand messy spreadsheets or “uncategorized” QuickBooks reports to accountants. The accountant spends hours (or days) fixing misclassified transactions, chasing missing receipts, and preparing compliant reports. The bill for this cleanup often runs into thousands of dollars per year.

Tax Filing and Compliance Even if your books are somewhat in order, accountants still need to confirm that your reports match IRS requirements, ensure deductions are maximized, and flag errors that could trigger penalties.

Here’s the problem: accountants are valuable for strategy and compliance, not for basic data entry. When they spend their time fixing miscategorized transactions, you’re overpaying for something that software should have done.

Why Other Tools Fall Short

Spreadsheets → error-prone, time-consuming, not scalable.
QuickBooks or Zoho → powerful, but require manual categorization and steep learning curves.
Hiring an accountant → accurate, but costly for small businesses if used for everyday bookkeeping.

Adam solves all three pain points for you at a low cost.

FAQ: Bank Statement Auto-Categorization

1. Can I connect multiple bank accounts to Adam? Yes. Adam syncs transactions across multiple accounts and auto-categorizes them seamlessly.

2. Does Adam replace QuickBooks? Not if you don’t want it to. You can connect QuickBooks to Adam and let Adam handle categorization while keeping your QuickBooks setup.

3. How accurate is Adam compared to an accountant? Adam uses AI to learn your business. Over time, it categorizes with greater accuracy than manual rules, while saving you the cost of hiring a bookkeeper. It makes the accounting process easier and less expensive for you as a business owner.

4. Can I upload past statements? Yes. Adam can import past statements and auto-categorize years of data in minutes.

Manually categorizing bank transactions is outdated.

Spreadsheets are error-prone. QuickBooks and Zoho leave too much work on your plate. Hiring an accountant to fix books after the fact costs thousands.

With Adam, you get AI-powered accounting software that:

Syncs with your bank directly.
Uploads and categorizes statements instantly.
Connects with QuickBooks for seamless integration.
Captures receipts from WhatsApp and email.

Start with Adam by Tyms today and let your bank statements organize themselves.