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Automate Expense Categorization with a Smart Keyword Reference Table

Managing daily expenses can feel overwhelming, especially when trying to categorize transactions efficiently.

2 min readMicrosoft Excel | Help & Support with your Formula, Macro, and VBA problems | A Reddit Community

There is a smarter way to handle this than manually tagging every transaction, and the solution is already sitting inside the tool you're using. The approach of building a keyword reference table on a separate sheet is not just a workaround, it is the foundation of a system that can scale with your financial awareness.

What makes this method effective is its simplicity. You define the rules once on Sheet2: a column for the keyword, a column for the category, and a column for the subcategory. Then, using a combination of `SEARCH` and `INDEX/MATCH` (or `XLOOKUP` in your version of Excel), you write a formula that scans the Narration field in each row, finds the first matching keyword, and returns the corresponding category and subcategory. For the Interac example, you add an extra layer: check whether the amount falls in the Income column or the Expenses column before assigning the category. That conditional logic is straightforward with an `IF` statement nested into your lookup.

You already understand the pattern. The hesitation comes from not knowing which formula to use, but the logic is sound. This is not a feature request for a future update, it is a problem you can solve today with the functions already available in your ribbon. The real value is in what happens next. Once every transaction is categorized automatically, your spreadsheet becomes a tool for insight, not just record-keeping. You can pivot, filter, or sum by category and see exactly where your money flows each month.

Stop copying and pasting into a dead log. Build the reference table, write the formula once, and let the spreadsheet do the classification for you. The goal is not to organize expenses for the sake of organization, it is to understand your spending habits well enough to change them. That starts with a keyword table and a single formula.

From Microsoft Excel | Help & Support with your Formula, Macro, and VBA problems | A Reddit Community

I am making an Excel sheet for daily expenses. I copy and paste transactions from my bank account row by row.

My columns are: Date | Type | Narration | Income | Expenses | Balance

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