how to do bookkeeping with ai and google sheets
IN SUMMARY
You can use AI to automate bookkeeping tasks in Google Sheets. Install the Simple ML extension, categorize a sample of transactions manually, and then let the AI predict the remaining transaction types based on the patterns it learns from your sample.
Setting Up
You'll need a Google account and access to Google Sheets to get started. Open a new or existing spreadsheet where you'll be recording your transactions.
Search for 'Simple ML' in the Google Workspace Marketplace and install the extension. This will allow you to use machine learning capabilities within your Google Sheet.
Gather your transaction data, either by manually entering it into a sheet or importing a CSV file from your bank or accounting software. Ensure you have columns for the date, description, and amount at a minimum.
Training the AI
In a separate column, categorize a sample of your transactions (e.g., 50 rows) by manually typing in the transaction type (e.g., rent, software subscription, office supplies). This will teach the AI how to categorize similar transactions.
Open the Simple ML extension and select 'Predict Missing Values'. Choose the column where you want the AI to predict the transaction types, and select the columns with the transaction description and amount as the source data for the AI to learn from.
The AI will attempt to categorize the remaining transactions based on the patterns it learned from your sample. Review the predictions and make any necessary corrections. You may need to provide a larger sample size if the AI struggles with certain transaction types.
Automating with Mage
Mage is an AI assistant that allows you to use =AI() functions in your Google Sheets. Install the Mage extension from the Google Workspace Marketplace.
Mage provides various =AI() functions that can automate bookkeeping tasks, such as categorizing transactions, generating financial reports, and performing calculations. For example, =AI('Categorize transactions based on description and amount') would categorize your transactions using AI.
As you use Mage for bookkeeping, provide feedback on the AI's performance by correcting any mistakes or inaccuracies. This will help the AI learn and improve over time, making it more accurate and efficient.