All About Categories Feature

Modified on Mon, 02 Oct 2023 at 04:56 AM

Dive into the capability of transaction categorization within Jack as this new capability will eliminate the need for manual transaction sorting, enabling users to swiftly generate internal reports for quicker decision-making, leading to accelerated growth and enhanced financial insights.

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The Power of Jack's Categories Feature

Imagine reclaiming hours once spent tediously sorting transactions manually into your chart of accounts from transaction reports, getting stressed about meeting tight deadlines to deliver orderly monthly reports for crucial business choices. This is not the case anymore with Jack’s Categories feature. The categories feature enables you to classify your financial transactions into specific categories like 'Office Supplies', 'Travel Expenses', 'Utilities', and many more, swiftly using the Jack platform. This capability allows you to organize your financial data efficiently, making it easier to track expenses and generate more complete financial reports.


Furthermore, Jack goes a step beyond, ensuring accessibility and clarity of categorization for all team members. We've replaced complex accounting terms like 'Chart of Accounts' with straightforward 'Categories.' This deliberate shift minimizes confusion for non-accounting staff, underscoring our commitment to smoothing financial operations for SMEs, startups, and enterprises alike. So, whether you're a finance whiz or new to this realm, Jack's Categories Feature equips you to master expense management with ease.


Benefits of Categories for Your Company

Control and management of the Categories feature in Jack are in the hands of the Business Owner, Admin, and Bookkeepers, delivering a range of advantages:

  1. Saving Time: Eliminate the need for manual transaction categorization. Our Categories feature adds a 'Category' column to your export reports, empowering Bookkeepers to swiftly analyze spending, facilitating informed decisions, and saving valuable time.

  2. Enhanced Control: Categories enhance the accuracy of approval flows. By having assigned categories during transaction review and approval, you can identify if there are transactions that are out of your company policy.

  3. Accelerated Decision-Making: With categorized transactions, your team can make faster, more informed decisions about your company's financial state, leading to better financial management and planning.


Manage Categories Easily in Jack

Set Up Category Preferences

First things first, you have the flexibility to choose whether to activate this feature, based on your organization's unique needs. If you want to activate it, you can go to Settings → Categories. You can also decide whether to make Categories required or optional during transaction creation. Learn how to set up category preferences easily here.


Determine Categories’ Types

Implementing Categories into your Jack company account has never been easier. Go to Settings → Categories and you will be guided to set Categories in minutes. To simplify the process and get you started on the right track, Jack offers 10 default Categories that cover common expenses. These Categories are intelligently designed to suit various business needs, from SMEs to large enterprises. Here’s the list of Jack’s default Categories:

  1. Marketing & Advertising

  2. Rent Expenses

  3. Office Supplies

  4. Travel Expense

  5. Client Entertainment

  6. Payroll Expense

  7. Taxes

  8. Service Provider

  9. Software

  10. Other Expenses

But here's the real magic – you have the complete freedom to add custom Categories according to your specific requirements. You can add Categories with three different methods: single, multiple, or import .CSV. After it’s all set, you can easily edit category information, such as category name, description, account code, visibility, etc., or delete any unnecessary Categories anytime you want. Learn how to add, edit, or delete Categories in Jack here


Assign Categories when Creating the Transaction

In Jack, we make it effortless for companies to manage their expenses efficiently, saving valuable time and resources. One key feature that aids in this process is the ability to assign Categories to your transactions. It’s advisable for all Drafters in your organization to fill the ‘Transaction Category’ column during transaction creation and ensure the category is well-assigned. Here's how you can do it:

  1. Batch Level Transactions

When dealing with batch Local Transfers payments, or batch Payroll transactions, you can easily categorize them. This categorization applies to all transactions within the same batch, simplifying the process for group expenses.

  1. Individual Level Transactions

For finer granularity, such as Bill Payments and Reimbursements, you can assign categories to each individual receipt or invoice. This allows for a more detailed breakdown, especially useful when one reimbursement batch encompasses multiple receipt categories.

  1. Post Transactions

In special cases for Card transactionscategorization can be done effortlessly after the transaction is completed in the Card transaction details page. You can add categories, input receipts, and include descriptions as needed, ensuring every expense is accurately recorded.


Review and Edit Categories in Transaction

At Jack, we understand the critical importance of precision in financial operations. To ensure that your expenses are accurately categorized, we've designed a user-friendly feature that empowers both Approvers and Releasers to review and edit transaction categories effortlessly, you can access this functionality in three key areas of the Jack portal: the Task Page, Transactions Page, and Corporate Cards Page. On these pages, you'll find two distinct review flows:

  1. Approval Flow

In the fast-paced world of finance, accuracy is paramount. Our Approval Flow functionality allows Approvers and Releasers to meticulously inspect transaction categories, ensuring that every expense aligns with company policies. This feature serves as a crucial checkpoint to prevent any out-of-policy transactions from slipping through the cracks. With a quick glance, you can ascertain whether Drafters have input the correct Categories or if any adjustments are needed, promoting financial integrity within your organization.

  1. Missing Details

To maintain comprehensive financial records, it's imperative that no transaction lacks essential categorization. Our 'Missing Details' feature, available on the Transactions and Tasks page, offers a convenient checklist. It enables you to quickly identify any transactions that are missing categories and add them right away, ensuring that every financial entry is complete and accurate. This not only simplifies your financial management but also aids in compliance and reporting.

Learn more about how you can review and edit Categories for each transaction here.


Export Jack Transaction Report with Enhanced Category Information

Exporting transaction reports in Jack is now a breeze. Thanks to the Categories feature, every transaction comes with a neatly organized 'Category' column, making it crystal clear where your expenses belong. No more deciphering complex spreadsheets or manually sorting transactions.


But that's not all. The 'Category' column is more than just a label. It's a window into your company's financial soul. With each expense meticulously categorized, you gain a deeper understanding of where your money is going. Is marketing eating up a significant chunk of your budget? Are office supplies costing more than expected? With this enhanced category information, you'll have the answers at your fingertips.


Monitor Real-time Expenditure by Category

Imagine having a dashboard that shows you exactly how much you're spending in each categoryJack's real-time monitoring feature provides precisely that. No more waiting for monthly reports to know where your money is going. It's all at your fingertips, in real time.

Whether you're a startup with straightforward expense tracking or a complex enterprise with intricate financial structures, Jack's Categories feature serves as a solid foundation for starting faster financial operations to support business needs. You can effortlessly tailor them to match your unique chart of accounts, making the transition seamless. So, whether you prefer to use the default settings or create entirely new Categories. Experience efficient financial management, and try our time-saving Category feature here.


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