How to Automate Your Bookkeeping with Addition Finance

Automated bookkeeping can take much of the repetitive work out of managing your business finances.

Instead of manually deciding what to do with the same transactions every month, Addition Finance lets you create simple rules for how they should be handled.

For example, you can tell Addition Finance how bills from different suppliers should be categorised, whether they need to be checked by a person, and whether certain transactions can be dealt with automatically when there’s no receipt or invoice.

Addition can also use AI to suggest how suppliers should be categorised based on your previous bookkeeping and its wider supplier data.

Having worked with thousands of suppliers, Addition sees many of the same names repeatedly. This gives the AI useful context when a familiar supplier appears, helping it suggest a sensible starting category rather than requiring you to set everything up from scratch.

In this guide, we'll show you how to automate your bookkeeping in Addition Finance by setting up supplier rules and using autopilot to handle routine transactions without paperwork.

Step 1: Check the Rules Addition Has Created for Your Suppliers

Start by opening Supplier Rules in Addition Finance.

Think of a supplier rule as a set of instructions for a business you regularly pay.

For example, if you regularly pay Amazon Web Services (AWS), you can tell Addition what should normally happen whenever an AWS bill or transaction appears.

When you first start using Addition, some of this work can already be done for you. AI can look at your previous bookkeeping and suggest how your regular suppliers should be categorised.

Rather than starting from scratch, your first step is simply to check that these suggestions are right.

Step 2: Tell Addition Where Each Supplier's Costs Should Go

Next, open a supplier and check its default category.

The category simply tells Addition what type of business cost it is.

For example, AWS might be set to Cloud Hosting.

If that's correct, leave it alone.

If you'd rather record those costs somewhere else, choose the new category and click Update Rule.

From then on, Addition can use your chosen category when it sees relevant transactions from that supplier.

What if a supplier's costs don't always go in the same place?

That's fine.

You don't need to create a rule that works perfectly for every possible transaction.

Choose the category that's correct most of the time. If a supplier regularly needs different categories, you can tell Addition to ask you before deciding. We'll cover that next.

Step 3: Choose Which Suppliers You Want to Check Yourself

Some suppliers are easy to automate.

If you pay the same software company every month and the payment is always for the same thing, there may be little reason to manually check every transaction.

Other suppliers aren't so straightforward.

You might buy several different things from the same company, meaning one bill could be a marketing expense while another relates to hosting or something you sell to your customers.

For these suppliers, switch on Always Review Bills From This Supplier.

Addition will then ask someone to check the transaction before it is finalised.

A good way to decide is:

The supplier's costs are normally the same: Let Addition handle them using your rule.
The supplier's costs often vary: Turn on Always Review so someone can check them.

This way, you automate the obvious transactions without giving up control over the ones that need a decision.

Step 4: Tell Addition Which Suppliers Pay Themselves Automatically

Next, check whether the supplier is paid by direct debit.

A direct debit means the supplier automatically takes payment from your bank account. You don't need to manually send the payment yourself.

If that's how the supplier is paid, make sure Direct Debit is selected in its rule.

This helps Addition understand that the supplier doesn't also need to be included in a list of bills for you to pay manually.

If you cancel the direct debit later, simply come back and update the rule.

It's a small setting, but keeping it accurate helps prevent confusion over which bills still need to be paid.

Step 5: Create Rules When You Start Using New Suppliers

You don't have to rely only on the supplier rules created when you first join Addition.

Whenever you start working with a new supplier, you can create a rule for them too.

You only need to answer a few simple questions:

What type of cost is this normally?
Is the supplier paid automatically by direct debit?
Do I want someone to check their transactions before they're finalised?
Is the supplier VAT registered?

Once you've answered these questions, Addition has a clear set of instructions to follow the next time that supplier appears.

The more predictable the transaction, the more of the repetitive bookkeeping work you can automate.

Step 6: Decide Which Payments Need Someone's Approval

You may not want every payment or expense to go through without someone checking it first.

That's what Approval Rules are for.

An approval rule simply says:

“When this happens, make sure someone approves it.”

For example, you might want an extra approval when:

A transaction is over a certain amount
Money is being paid to a particular supplier
A particular type of expense is submitted
A transaction uses a particular currency

Addition gives you several ways to create these rules, so you can match them to how your business actually works.

The important part is that you don't have to make everything manual just because some transactions need approval.

You can automate the routine work and add approval only where you want an extra check.

Step 7: Stop Chasing Receipts That Don't Exist

One of the frustrating parts of bookkeeping is repeatedly chasing paperwork for transactions that simply don't have any.

Imagine the same bank transaction appears every month.

The finance team asks for a receipt. You explain that there isn't one. They confirm that there's no paperwork and deal with the transaction.

Next month, everyone does exactly the same thing again.

Addition's Autopilot Rules are designed to remove this unnecessary back-and-forth.

If a transaction is predictable and you know it isn't supposed to have a receipt, invoice or other paperwork, you can create an autopilot rule for it.

Addition can then deal with matching transactions automatically in future.

Autopilot works best when:

You recognise the transaction
It happens regularly
You don't expect to receive paperwork for it
You want it handled the same way each time

You don't have to keep telling your finance team, “There isn't a receipt for this one.” The rule already tells Addition what to do.

Step 8: Keep Your Automation Up to Date

Once you've set up your rules, you shouldn't need to spend much time managing them.

Just remember that the way your business operates can change.

Come back and update a rule if, for example:

You start using a supplier for something different
A supplier starts or stops collecting payment by direct debit
You want to start checking a supplier's bills yourself
Your approval process changes
A regular transaction no longer needs paperwork chased

Your automation is only useful when the instructions reflect what your business actually does.

Which Addition Finance Rule Do I Need?

If you're unsure which rule to use, keep it simple:

Want Addition to know what to do with costs from a regular supplier? Create a Supplier Rule.
Want to check a supplier's transactions yourself before they're finalised? Turn on Always Review.
Want certain transactions to require someone's permission? Create an Approval Rule.
Want Addition to deal with a regular transaction that doesn't have paperwork? Create an Autopilot Rule.

You don't need to automate everything. Start with the transactions you see repeatedly and where you already know what should happen.

How Does Addition Finance Automate Bookkeeping?

Addition uses AI, integrations and automation rules to reduce the amount of bookkeeping you need to handle manually.

It connects with the tools your business already uses, while AI can analyse your previous bookkeeping and suggest how regular suppliers should be categorised. Addition's experience working with thousands of suppliers also helps it suggest a sensible starting point when it recognises a supplier.

From there, you choose what happens automatically:

Supplier rules handle regular supplier transactions.
Approval rules make sure certain transactions are checked.
Autopilot rules handle predictable transactions where paperwork isn't expected.

You can review or change these rules whenever you need to, giving you less repetitive bookkeeping without losing control.

Frequently Asked Questions About AI Bookkeeping

What is AI bookkeeping?

AI bookkeeping uses artificial intelligence to help with repetitive bookkeeping tasks that would otherwise need to be completed manually.

In Addition, AI can help suggest how suppliers should be categorised based on previous bookkeeping information and supplier data. You can then review and adjust those rules to suit your business.

Can AI automatically categorise my business expenses?

Addition can use supplier rules to help categorise recurring transactions.

For example, if payments to a particular software provider are normally a software expense, you can set that as the default. Addition can then use that information when future transactions from the supplier appear.

Do I lose control when I automate my bookkeeping?

No. You can choose which transactions Addition handles using your rules and which ones you want someone to review.

For suppliers where the correct treatment varies, you can use Always Review so a person still checks the transaction.

Can Addition Finance handle transactions without receipts?

For predictable transactions where you know paperwork isn't expected, you can use an Autopilot Rule.

This prevents you or your finance team from repeatedly chasing documents that aren't going to be available.

What's the difference between automated bookkeeping and AI bookkeeping?

Automated bookkeeping uses predefined rules to complete repetitive tasks automatically. AI bookkeeping can go further by using previous information and patterns to help make or suggest bookkeeping decisions.

Addition Finance uses both approaches. AI can help suggest how suppliers should be treated, while rules give you control over what happens to future transactions.

What integrations does Addition Finance support?

Addition Finance integrates with the tools you already use to help keep your bookkeeping connected and reduce manual admin. You can explore the available connections and learn how they work on the Addition Finance integrations page.

Spend Less Time Managing Repetitive Bookkeeping

Bookkeeping automation doesn't need to mean handing over control of your finances.

With Addition, you decide what can happen automatically and what still needs a person to check it.

Start with the easy wins: regular suppliers, predictable expenses, repeat approvals and transactions where you already know there won't be any paperwork. Set the rules once, and Addition can use those instructions the next time the same situation comes up.

That means less repetitive admin, fewer unnecessary questions and more time to focus on running your business.

Want to see how Addition Finance could automate your bookkeeping? Book a demo with our team to see the platform in action and explore how it could work for your business.