⚙️ How Hedgi’s Automation Works: Rules, AI, and Smart Mapping Explained
Everything that happens behind the scenes to keep your books clean — without manual work.
One of the biggest things that sets Hedgi apart is what happens before you even open the app. Our automation engine reviews, categorizes, and tags your transactions the moment they sync — using a multi-layered system designed for accuracy and audit-readiness.
Let’s break it down.
🧩 The 5 Layers of Hedgi Categorization
1. Plaid-to-Hedgi Mapping (Free & Up)
When your bank syncs with Hedgi via Plaid, it provides a vendor name and transaction type (like "Gas" or "Dining"). We clean up the raw name (e.g., turning “CHEVRON #0362 QPS” into “Chevron”) and map it to the most likely Hedgi category.
Example:
“Zoom.US” → Communications
“Shell Gasoline” → Automobile and Truck
🧠 This mapping is curated and frequently updated — it’s faster and smarter than your bank’s generic MCC code logic.
2. Single-Match Rules (Free & Pro)
You can create your own transaction rules that automatically assign a category when both the vendor and amount match a previous transaction.
Example:
“ABC Payroll” + $2,000 → Payroll (Wages)
“Verizon” + $142.13 → Utilities
These are perfect for recurring fixed expenses. They override AI and Plaid when matched exactly.
3. Custom Category Rules (Pro & Agentic)
For power users, you can create manual rules that apply based on:
Vendor name contains…
Example:
Rule: If Vendor = “Costco” → Office Supplies
You can build these directly in the app to control how future transactions are handled — no AI required.
4. AI Categorization (Pro & Agentic)
If a transaction isn’t caught by any of the above, Hedgi’s fine-tuned AI steps in.
It looks at:
Vendor name
Description
Amount
Your prior categorization behavior
Then it makes a high-confidence prediction — with logic attached (for Pro users who want to review it).
Example:
“Apple.com/Bill” → Software Subscription
“FedEx Ground” → Shipping and Delivery
5. Agentic Review + Journaling (Agentic Tier Only)
For Agentic users, we go one step further. After categorization, Hedgi’s agent checks your entire ledger for:
Inconsistencies
Potential missed deductions
Transactions needing journal entries (e.g., reimbursements, inventory, payroll splits)
Then it:
Generates journal entries
Flags exceptions
Sends a monthly summary
🛠 What Happens If Nothing Matches?
If a transaction is completely new (unseen vendor, unknown description, no rules triggered), Hedgi flags it for manual review — or you’ll see it in your “Needs Categorization” filter.
You can classify it once, and Hedgi will remember your choice for the future.
🔁 The Automation Stack (In Order)
When a new transaction syncs:
Single-match rule? Apply it.
Custom user rule? Apply it.
Plaid mapping? Use it.
AI fallback? Use it.
Still unclear? Flag it.
🧠 Why This Matters
This system:
Saves time by reducing manual reviews
Improves over time based on your behavior
Keeps a clean audit trail for tax prep and compliance