# Getting Started: Transactions and Categories > Learn how to categorize and approve new transactions in YNAB, which category to choose for income, spending, and refunds, and what to do when none fits. Source: https://support.ynab.com/en_us/getting-started-transactions-and-categories-SJejV3szx Last updated: 2026-11-10T18:45:14.348Z Every time you open YNAB, your first job is to categorize any new transactions. Categories tell YNAB how each transaction affects your plan, so this is the habit that keeps everything else accurate. #### In This Article [What to Do With New Transactions](#new-transactions) [How to Categorize and Approve New Transactions](#categorize-and-approve) [What Category Should I Choose?](#choosing-a-category) [Will I Always Have to Do This?](#auto-categorization) [What If No Category Fits?](#no-category-fits) [How Transactions Affect Your Account Balances](#account-balances) * * * ## What to Do With New Transactions If your accounts are linked to your bank, new transactions will import around 24 hours after they clear the bank. Each one needs a category so YNAB knows how it affects your plan. Once it has a category, approve it to confirm it’s correct. [Back to Top](#backtotop) * * * ## How to Categorize and Approve New Transactions On mobile, YNAB gathers new transactions from all your accounts in one place. On web, use _All Accounts_ to review everything at once instead of opening each account. ### iOS 1. Tap the _Home_ tab. 2. Tap the banner displaying "\[#\] New transactions" at the top of the screen. 3. Tap a transaction that needs a category, then tap _Category_ and choose one. 4. Approve the transaction. In Card Mode, swipe right. In List Mode, select the transaction(s) and tap _Approve_. ### Android 1. Tap the _Home_ tab. 2. Tap the banner displaying "\[#\] New transactions" at the top of the screen. 3. Tap a transaction that needs a category, then tap _Category Needed_ and choose one. 4. Tap _Save_. 5. Select the transaction(s) and tap _Approve_. ### Web 1. Click _All Accounts_ in the left sidebar. 2. Click _View_ on the blue banner displaying "\[#\] new transactions to approve or categorize." This filters the register to only the transactions that need attention. 3. For any transaction showing "This needs a category," click the alert and choose a category. 4. Select the transactions using the checkboxes on the left, then click _Approve_ in the toolbar at the bottom of the screen. [Back to Top](#backtotop) * * * ## What Category Should I Choose? * **Income:** Anything you consider income (payroll, side hustle income, interest, child support, Social Security) gets the _Income: Ready to Assign_ category (_Inflow: Ready to Assign_ on web). This adds the money to the top of your plan, ready to assign to categories. * **Spending:** Any spending gets a spending category. This reduces the amount available to spend in that category. * **Returns and refunds:** Give these the same spending category as the original purchase. This puts the refunded money back in that category. * **Transfers between accounts:** If the transaction is a transfer between two cash accounts in YNAB, you’ll use the [transfer](https://support.ynab.com/en_us/transfer-transactions-a-guide-HJOsZz4Jj#create) payee. If it’s a payment on a credit card you’ve set up in YNAB, you’ll set it up as a [credit card payment](https://support.ynab.com/en_us/credit-card-payments-a-guide-r1_506Q1j). [Back to Top](#backtotop) * * * ## Will I Always Have to Do This? When you first start YNAB, you'll choose a category for every new [payee](https://support.ynab.com/en_us/getting-started-ynab-basics-and-key-terms-BJCaIHaTZe#payee) YNAB sees. That's how YNAB learns your usual payees. The next time YNAB sees that payee, like your usual grocery store, gas station, or cafe, it will auto-categorize the transaction for you. Over time, you'll spend more time approving auto-categorized transactions and only need to categorize transactions from new payees. [Back to Top](#backtotop) * * * ## What If No Category Fits? Now is the perfect time to create one! If it’s a one-time expense, you might try finding a more general category to lump it into. If it’s a recurring non-monthly or monthly category, go ahead and create a category for it. Learn more in [Getting Started: Categories in YNAB](https://support.ynab.com/en_us/getting-started-categories-in-ynab-rkWG3rp6x). Two things to consider when you create a new category: 1. You'll likely want to assign money there to cover the spending, especially if it's cash spending or on a credit card you pay in full. 2. If it's an expense that will happen again, consider setting a target to prepare for the next time it happens. [Back to Top](#backtotop) * * * ## How Transactions Affect Your Account Balances When you first add an account, it will only have a starting balance transaction. If you link the account to your bank, YNAB imports the current balance on that account. If you don’t link the account, you’ll enter the starting balance while adding the account. Generally, the balance will be an inflow for cash accounts and outflow for credit cards. Wondering where your older transactions went? Check out [Getting Started: Frequently Asked Questions](https://support.ynab.com/en_us/getting-started-frequently-asked-questions-r1EiQk75Ml). From then on, transactions that clear on or after the day you set this account up are what adjust the account balance. So you'll need to either link the account, or commit to adding transactions yourself or through [File-Based Import](https://support.ynab.com/en_us/file-based-import-a-guide-Bkj4Sszyo). No matter how transactions get into YNAB, you’ll need to [reconcile your accounts](https://support.ynab.com/en_us/reconciling-accounts-a-guide-BJFE3fHys) weekly to confirm the balances still match your bank. [Back to Top](#backtotop) * * * ## Help Us Help You **Are you stuck or do you need more help?** [**Tell the chatbot you need a human or send us an email**](https://support.ynab.com/en_us/how-to-get-help-SygqcvtC5) to ensure that your message gets to our Support team!