We categorise transactions based on their payees. A payee is the description for a transaction. It could be:
The payees from your bank often have a lot of extra text at the end. Whenever possible, we'll suggest more intuitive names and categories for common payees.
You can change categorization of transactions and also set categorization rules to categorize future transactions from same payee as per your preferences.
If we don't recognise a payee, we'll ask you to assign a category yourself. We'll learn from that, too, and use that category for future transactions from that same payee.
But sometimes we can guess at the right category, so all you need to do is edit the payee if you want.
You'll need to enter the payee and category on cheques that you've written by hand.