How to Categorize Bank Transactions Automatically
How to categorize bank transactions by hand in Excel and automatically with rules, a category list that fits Saudi businesses, and what to check after.
One line on your statement says "MUDAD WPS", another says "سداد فاتورة". To report on those numbers, every line needs a clear category.
This guide shows how to categorize bank transactions by hand in Excel, how automatic categorization works, and a category list that fits businesses and households in Saudi Arabia.
What does it mean to categorize bank transactions?
It means giving each line on the statement a category that says what it is: income, payroll, rent, tax or purchases. Categories are what turn a list of transactions into a report you can read.
The income statement, the VAT report and any spending analysis are built on them.
How to categorize bank transactions in Excel by hand
- Add a new column called Category.
- Sort the transactions by description so similar lines sit together.
- Type the category for the first line, then copy it to the matching lines.
- For recurring lines, use a formula that looks for a word in the description:
=IF(ISNUMBER(SEARCH("UBER",C2)),"Ride-Hailing",
IF(ISNUMBER(SEARCH("سداد",C2)),"Bill Payment","Other"))It works for a handful of words, but it grows fast and gets hard to maintain with every new bank and type of transaction.
How automatic categorization works
The same idea at a larger scale: each category has a list of patterns in Arabic and English. Rules are checked from the most specific to the most general, and the first rule that matches sets the category.
("payroll_expense", [r"صرف\s*رواتب", r"mudad\b", r"wps\b"]),
("gosi", [r"تأمينات\s*اجتماعية", r"gosi\b"]),Direction matters too: a salary coming into your account is income, while salaries paid from a company account are a payroll expense.
Bank transaction categories for Saudi businesses and households
| Group | Example categories |
|---|---|
| Income | Salary, Sales Income, Rental Income, Refund |
| Business expenses | Payroll, GOSI, Supplier Payment, Inventory, Commercial Rent, Trade License, Marketing & Ads |
| Government and tax | VAT Payment, Zakat/Tax, Gov. Fee, Traffic Fine, Customs |
| Bills | Electricity, Water, Telecom, Bill Payment |
| Daily spending | Grocery, Restaurant, Food Delivery, Coffee Shop, Fuel, Ride-Hailing |
| Finance and transfers | Loan Installment, BNPL (Tabby, Tamara), Transfer, Banking Fee, Cash Withdrawal, Digital Wallet |
What to check after automatic categorization
- The Other category: lines no rule matched. Categorize them yourself.
- Transfers between your own accounts: they are neither income nor expense.
- Mixed accounts: split personal spending from business spending.
In Bayainy you can change the category of any transaction on the results page before you export.
What categorized transactions are used for
- Preparing your VAT report.
- Splitting customer and supplier statements.
- Bank reconciliation against your books.
- Seeing where the money goes each month.
Frequently asked questions
How many categories does Bayainy use?
About 80, with Arabic and English names, covering households and businesses in Saudi Arabia and the Gulf.
Can I change a category?
Yes. Change the category of any transaction on the results page, and the file is exported with your change.
Is the categorization done by AI?
Categories come from a fixed list and are mostly set by rules that read the description, so the same description gets the same category every time.
Does it understand Arabic descriptions?
Yes. The rules are written in Arabic and English, including local services such as Sadad, Mudad and GOSI.
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