The problem
Bookkeeping piles up at the end of the month, then the end of the quarter, then the night before the deadline.
Step by step
- Check what your accounting software already does. Many have automatic categorisation and receipt capture built in; use that first.
- For anything left over, export transactions as a spreadsheet.
- Give the AI your list of categories and ask it to suggest one per transaction with a confidence level.
- Review every suggestion marked low confidence, and spot-check the rest.
- Ask your bookkeeper or accountant to review your categories once.
The prompt
Here are my expense categories:
{categories}
For each transaction below, suggest a category and say high, medium or low confidence. If unsure, say "ask". Return a table.
{paste transactions: date, payee, amount}
Replace the {highlighted} parts with your details, or fill them in with the prompt builder.
Check before you use it
- Low-confidence items are checked by a person.
- Totals match your bank statement.
- Your accountant agrees with the categories.
Privacy
- Remove full account numbers. Check the tool’s data settings before pasting financial data.
Do’s and don’ts
Do
- Use your accountant’s category list.
- Ask the AI to flag anything it is unsure about.
- Keep the original receipts.
Don’t
- Paste full bank statements with account numbers into a free tool.
- Treat the AI’s view of what is tax-deductible as advice.
- Skip the monthly check against your bank balance.
When not to use AI for this
AI is not a substitute for an accountant for tax decisions.
Tools that can help
DextCaptures receipts and bills and pulls out the data for your books.
QuickBooksAccounting software with AI help on categorising, invoices and reports.
XeroAccounting software with bank feeds, invoicing and AI features.
Microsoft CopilotMicrosoft’s assistant, also built into Outlook, Word, Excel and Teams on Microsoft 365 plans.
We are not paid by any of these companies, and we list well-known options, not a ranking. Features and plans change; check the provider’s site and its data terms before you sign up. See all AI tools by category.
Useful for
Tried this playbook? Rate it.
Tips from travellers
Used AI for Sort expenses and receipts? Share what worked. The first good one goes right here.
Share a tip
Questions from readers
Stuck on Sort expenses and receipts? Ask the geeks.