What are uncategorized transactions?

Uncategorized transactions are financial transactions that have not yet been assigned to an account in the chart of accounts. Until they are categorized, they may not be reflected correctly in financial reports.

Modern accounting software often categorizes routine transactions automatically. When the correct accounting treatment is uncertain, transactions may remain uncategorized until an accountant reviews them.

Example: A business pays a new vendor for the first time. Because there is not enough historical information to confidently determine the correct category, the transaction is surfaced for review instead of being categorized automatically.

Related terms: Category Manager, Chart of Accounts, Confidence Score, Human in the Loop