Overview of Hedgi
Hedgi is a patent-pending machine learning application that simplifies bookkeeping for business owners and managers. Instead of spending time trying to categorize expenses, you can focus on operations. We designed Hedgi to leverage machine learning and crowdsourced experience to automate the process of categorizing business expenses and generating financial reports.
Hedgi users benefit from the expertise of our partner accounting firms and the collective knowledge of other business operators within their industry. We use a database of ‘transaction rules’ to automatically categorize transactions from various vendors, specific to your industry. If you disagree with Hedgi’s categorization, you can override it and select another. Hedgi will remember your choice for future transactions of the same type. If Hedgi is unable to categorize a transaction, you can create your own rule for future transactions.
Getting started with Hedgi is easy. All you have to do is connect your bank accounts and Hedgi will pull all your transactions for a given time period and apply the categorizations. If there are transactions that remain uncategorized, you can create an automation for them. As more users categorize a vendor/transaction combination the same way, Hedgi will promote that local user rule to a global rule available to all other Hedgi users. This is how we crowdsource bookkeeping and take the guesswork out of tax preparation and financial reporting.
The real benefit of Hedgi is the ‘acceptance rate’ of its automations. For example, when Hedgi sees a transaction from ‘Staples’, it will set the category of the expense to ‘Office Supplies’ for most industries. Based on how many other users have accepted that categorization, the rule will have an acceptance rate of 80%, for example. This gives you confidence that you can allow that particular rule to set your category for your ‘Staples’ transaction.
The Hedgi Slider allows you to set a risk tolerance. If you are very conservative, you can set the slider to 90%, meaning any Hedgi rule that has an acceptance rate below 90% within the Hedgi user community will be deactivated. You will then manually create automations for your transactions. If you are more liberal, you can set the slider to a lower percentage, such as 30%.
Hedgi does not endorse any write-offs for any industry. We simply show you what your peers in that industry are doing for each expense category. It is up to you to categorize your expenses according to the ‘ordinary and necessary’ guidelines.
Hedgi also provides industry benchmarks to our users. As we automate your books and categorize your expenses, we will generate Profit & Loss statements and Balance Sheet statements. You will immediately see where you stand in relation to your peers in each category within your industry. For example, if you are a dentist and your rent expense is 20% of your gross profit, you would be an outlier compared to your peers who spend 10% of their gross profits on rent. This will be immediately visible to you after all your transactions have been categorized.
In summary, Hedgi is an efficient machine learning accounting platform that takes the guesswork and repetitive work out of bookkeeping and financial reporting. Our users benefit from the 30 years of experience within our accounting partners and the collective knowledge and experience of our user community.