Using GL Automation

Contents

What is GL Automation?

• Efficiency: Reduces manual categorization workloads by automating repetitive tasks.
• Seamless Integration: Works directly with the GL, preserving existing workflows without requiring bank feed disconnections.
• Flexibility: Compatible with both bank-connected and manually imported accounts.
• Time Savings: Saves firms approximately 10–15 hours per month on bookkeeping tasks.

Create Holding Accounts

 

As part of the setup, two new accounts will need to be created in the Chart of Accounts. These are dedicated holding accounts that will temporarily store transactions that require categorization by Botkeeper’s AI. This structure enables streamlined processing and ensures accurate, AI-driven categorization.

The two new accounts should be created with the following names shown below (in the list and respective screenshots):

• AI Categorization - Expenses
• AI Categorization - Income

Configure GL Automation

After you have created the holding accounts within your clients’ GL it’s time to navigate to the client’s Transaction Manager Configuration tab within Botkeeper.  This is where you will tell Botkeeper what accounts to ingest the transactions from in your client’s GL to get categorized by Botkeeper’s AI.  

1. Navigate to your client’s Transaction Manager Configuration tab in the Botkeeper platform.
2. In the Additional Automation Settings section, click the Edit button.
3. In the GL Automation field, begin typing the name of the GL account.
4. Select the first AI Categorization account from the dropdown list. 
5. Repeat steps 3 & 4 to select the remaining AI Categorization account.
6. Click the Save button once you have completed the above steps

Create Bank Rules

It’s now time to create two new bank rules in your clients’ GL.  These will be used to move your clients’s bank feed transactions that require AI Categorization into their associated holding accounts.

The bank rules should be named the same as the new holding accounts:

• AI Categorization - Expenses
• AI Categorization - Income

There are also two scenarios to consider when it comes to the new Bank Rules setup.  When Auto-add is turned on vs. off.

• Auto-Add Turned On

• The account requires minimal matching
• Example transactions: Payroll Journal Entries
• The transactions to match are already in the general ledger before they come through the bank feed. 
• Auto-Add should be turned on for your new AI Categorizations bank rules
• This setup will automatically post the transactions to the new holding accounts

• Auto-Add Turned off

• The account requires heavy matching
• Example transactions: 3rd party applications (i.e., expense management apps), that sync to the general ledger after the transactions have already come through the bank feed (i.e., weekly, bi-weekly, bi-monthly, monthly, etc.) 
• The transactions to match are not already posted in the general ledger before they come through the bank feed. 
• Auto-Add should be turned off for the new AI Categorizations bank rules
• This setup requires the transactions be manually added to the new holding accounts 

Once the bank feed transactions are Posted (automatically or manually) to the general ledger they are held in the respective holding account until Botkeeper ingests them daily or on demand (for faster processing time) to be categorized by Botkeeper's AI. Transactions that are deemed Matched will need to be actioned manually from the bank feed by a firm resource or Botkeeper Dedicated Accountant.  

Below are screenshots of the the bank rule setup:

The screenshot below illustrates the Bank Rules Prioritization list. As mentioned above, proper rule ordering is critical to ensure accurate and intentional transaction categorization.

To preserve the integrity of any existing bank rules, the two new AI Categorization rules should be placed below them in the list. This setup ensures:

• Existing rules are applied first, following your client’s current workflow.
  
  
• Botkeeper’s AI Categorization rules act as a catch-all for any remaining transactions that haven't been categorized.
  
  

If you prefer all transactions to be categorized by Botkeeper’s AI, move the AI Categorization rules to the top of the list.
This will bypass existing bank rules, allowing Botkeeper’s AI to handle all transaction categorization from the start.

GL Automation Workflow

Auto Add Turned On

• Transactions flow into the general ledger bank feed
• The general ledger bank rules are applied
• Transactions posted to the holding accounts will be ingested into Botkeeper daily or on demand to be categorized by Botkeeper’s AI and synced back to the general ledger
• Transactions with >98% confidence rating will automatically go to the Processed tab and no further action is required
• Transactions with <98% confidence rating will automatically go to the Needs Review tab for someone at your firm or your Botkeeper Dedicated Accountant to review and take action

Auto Add Turned Off

• Transactions flow into the general ledger bank feed
• The general ledger bank rules are applied
• Someone at your firm or your Botkeeper Dedicated Accountant will need to take the action to Post the transactions that were categorized to the new holding accounts by the new bank rules 
• Botkeeper ingest the transactions sitting in the respective holding accounts, daily or on demand, categorizes them and syncs them back to the general ledger
• Transactions with >98% confidence rating will automatically go to the Processed tab 
• Transactions with <98% confidence rating will automatically go to the Needs Review tab for someone at your firm or your Botkeeper Dedicated Accountant to review and take action

See it in action here:

GL Automation Setup for Xero

To enable GL Automation for Xero clients, please follow the steps outlined below.

Create Holding Accounts

As part of the setup, two new accounts will need to be created in the Chart of Accounts. These are dedicated holding accounts that will temporarily store transactions that require categorization by Botkeeper’s AI. This structure enables streamlined processing and ensures accurate, AI-driven categorization.

The two new accounts should be created with the following names shown (in the list and respective screenshots) below:

• AI Categorization - Expenses
• AI Categorization - Income

Configure GL Automation

After you have created the holding accounts within your clients’ GL it’s time to navigate to the client’s Transaction Manager Configuration tab within Botkeeper.  This is where you will tell Botkeeper what accounts to ingest the transactions from in your client’s GL to get categorized by Botkeeper’s AI.  

1. Navigate to your client’s Transaction Manager Configuration tab in the Botkeeper platform.
   
   
2. In the Additional Automation Settings section, click the Edit button.
3. In the GL Automation field, begin typing the name of the GL account.
4. Select the first AI Categorization account from the dropdown list. 
5. Repeat steps 3 & 4 to select the remaining AI Categorization account.
6. Click the Save button once you have completed the above steps

Create Bank Rules

It’s now time to create two new bank rules in your clients’ GL.  These will be used to move your clients’s bank feed transactions that require AI Categorization into their associated holding accounts.

The bank rules should be named the same as the new holding accounts:

• AI Categorization - Expenses
• AI Categorization - Income

The screenshot below illustrates the Bank Rules Prioritization list. As mentioned above, proper rule ordering is critical to ensure accurate and intentional transaction categorization.

To preserve the integrity of any existing bank rules, the two new AI Categorization rules should be placed below them in the list. This setup ensures:

• Existing rules are applied first, following your client’s current workflow.
  
  
• Botkeeper’s AI Categorization rules act as a catch-all for any remaining transactions that haven't been categorized.
  
  

If you prefer all transactions to be categorized by Botkeeper’s AI, move the AI Categorization rules to the top of the list.
This will bypass existing bank rules, allowing Botkeeper’s AI to handle all transaction categorization from the start.

GL Automation Workflow

• Transactions flow into the general ledger bank feed
• The general ledger bank rules are applied
• Transactions added to the holding accounts need to be manually unreconciled so they can be ingested into Botkeeper (daily or on demand) to be categorized by Botkeeper’s AI and synced back to the general ledger
• Transactions with >98% confidence rating will automatically go to the Processed tab and no further action is required
• Transactions with <98% confidence rating will automatically go to the Needs Review tab for someone at your firm or your Botkeeper Dedicated Accountant to review and take action

When will transactions begin being processed?

GL Automation has two methods for processing:

• Daily
• On Demand

For daily processing there is no action required.  The Automation will run at 7 am EST each day; provided the setup detailed in the sections above have been completed.

For On Demand processing, once the transactions are posted to the respective AI Categorization holding accounts you will need to navigate to the Transaction Manager module within Botkeeper for the client you would like to process the on demand categorizations for.  Once in the Transaction Manager module navigate to the Needs Review tab and click on the Apply Automation button.  Automation will run for any transactions sitting in the Needs Review tab, regardless of the transaction's account setup (i.e., Smart Connect or GL Automation).  Depending on the amount of transactions to be categorized you should be able to step away to make a cup of coffee and return to categorized transactions potentially awaiting your review.

Those transactions resulting in a >98% confidence rating will have been automatically synced to your client’s GL and transitioned from the Needs Review tab to the Processed tab within Transaction Manager.

Those transactions resulting in <98% confidence rating will remain in the Needs Review tab for human review by your firm resource or your Botkeeper Dedicated Accountant.