CodeIQ by ReconcileIQ
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CodeIQ · FeaturesEight-phase pipeline

Accounting automation software that codes and posts the books.

CodeIQ takes a client's bank statement and codes every line: account and VAT, and the contact where the platform supports it, through eight phases in order. It reads purchase invoices, turns marketplace statements into journals, and posts the approved batch to Xero, QuickBooks, Sage, Pandle or IQ Books. What it is not sure of waits for you.

Start free CodeIQ overview
8 phases a line5 platforms to post to10 client sessions at once
One line, eight phasesIllustrative
SHELL 4521 LEEDS−61.30Business current account · 14 Mar
  1. 01Transfer detectionno pair
  2. 02Invoice matchingno invoice
  3. 03Client’s own historyhistorical
  4. 04Universal patternsnot reached
  5. 05Card category (MCC)not reached
  6. 06Semantic analysisnot reached
  7. 07Your correctionsnone apply
  8. 08VAT classificationstandard rate
AccountMotor expenses
VAT20% (ST)
ContactShell

01 · The pipeline

Eight phases, in order, every line.

This is how CodeIQ categorises bank transactions. Each line is tested phase by phase, the cheap and certain checks first, and the phase that settles it is recorded against the line, so every coding decision can be traced. That record is what makes automated bookkeeping reviewable. Upload the statement as a CSV, an Excel file (.xlsx or .xls), a PDF, or a photo or screenshot.

PhaseRecorded as
1Transfer detectionEqual and opposite amounts across the client’s accounts within a date window, paired before anything can miscode them as income or expense.transfer_detection
2Invoice matchingPayments matched to outstanding sales and purchase invoices on the platform, including partial payments and overpayments, with adjustments for small differences such as bank charges.invoice_matching
3Historical patternsThe client’s own coding history, learned from the platform’s general ledger when the session starts.historical
4Universal patternsOver 14,000 crowd-sourced merchant patterns, so common suppliers are coded on first sight for a brand new client.universal_pattern
5Card category codesThe merchant category code that card transactions carry, mapped to the right nominal account.mcc_category_match
6Semantic analysisThe description read for meaning by an embedding model run on our own servers, against account names enriched with the merchants usually coded to them.semantic
7Your correctionsEvery change you make is remembered and applied last, so your judgement overrides the patterns on the next session.user_learning
8VAT classificationA tax treatment for every coded line, mapped to the platform’s own tax codes and, where a rate applies, the net and tax amounts worked out.suggested_vat_code

On QuickBooks and Xero, additional platform passes also match contacts and vendors and carry tracking categories (classes in QuickBooks). They work alongside the eight phases; they are not extra phases of their own.

02 · Review

Artificial intelligence accounting software that knows when to ask.

As AI accounting software, CodeIQ codes about 95% of recurring merchants and 80 to 85% of ones it has not seen before exactly as you would. The rest is not guessed at: low-confidence lines go to RiQ for a second look, then to you.

  • Confidence on every lineEach suggestion carries a confidence score and the phase that produced it, so you can filter to what needs judgement.
  • RiQ’s second passRiQ, the suite’s AI, reviews the low-confidence lines in context and suggests an account and VAT code, with its reasoning.
  • Views for the reviewTransactions, VAT audit, transfers, accounts and invoices, with filters by amount, account, VAT code and status.
  • Nothing posts unapprovedYou approve the batch. Coding a line yourself is always free.
Held for you3 of 212
TFR J SMITH REF LOAN−2,000.00Ask
PAYPAL *MARKETPL−148.20RiQ
HMRC VAT−3,412.66RiQ
209 coded and readyIllustrative

03 · Tax

VAT set as a UK bookkeeper would set it.

Every coded line in a UK, US or Canadian organisation gets a tax treatment, mapped to the tax codes the client’s platform actually uses. The regime follows the organisation’s country, so a US or Canadian client is never coded with UK VAT.

CodeTreatmentMapped to
STStandard rate, 20%The platform’s standard-rate code
RRReduced rate, 5%The reduced-rate code
ZRZero ratedThe zero-rated code
EXExemptThe exempt code
NVNo VAT, outside the scopeNo VAT / outside the scope
  • UKVAT under HMRC rules, with net and VAT calculated, ready for the client’s MTD VAT return from their own software.
  • United StatesSales and use tax handled as its own regime: destination-based, per state and not recoverable. Where the platform’s tax code carries no rate, the amount is left to the platform or to Avalara.
  • CanadaGST and HST with input tax credits, plus provincial PST or QST.
  • Anywhere elseTreated conservatively rather than assumed to be the UK.

04 · Invoices and receipts

Receipt software, built into the coding.

Drag in purchase or sales invoices as PDFs, PNGs or JPGs, a batch at a time, including phone photos and screenshots. RiQ Vision reads each one, the invoice is created on your platform, and the invoice-matching phase pairs it with its bank payment.

  • Fields readSupplier, date, invoice number, net, VAT and total, currency, and line items where present, with a confidence score on the supplier, invoice number, date and total, plus a suggested expense or income account from your chart.
  • Low confidence surfacedFields it is unsure of are flagged for you to check before the invoice is created.
  • Matched to the bankCreated invoices join the outstanding list, so phase 2 can pair them with their payments.
  • CreditsSyncing an invoice to your platform uses 10 credits.
Invoice readIllustrative
SupplierNorthfield Packaging Ltd0.98
Date22 Apr 20260.99
Invoice no.NP-204180.97
Net£310.00
VAT£62.00
Total£372.000.98
Confidence on four key fieldsMatched in phase 2

05 · Marketplaces

Ecommerce accounting software for the settlement report.

On the Merchant Accounts tab, mark the bank account that receives a marketplace’s payouts and upload its statement. CodeIQ splits every line into sales, fees, shipping, refunds and tax, leaves the payouts for the bank side, and codes the rest to your chart of accounts with the platform as the contact.

  • Built-in parserseBay, Amazon and PayPal statements are recognised from their headers and parsed without any setup.
  • Any other platformStripe, Etsy, Square, GoCardless, Shopify and the rest go through RiQ-assisted mapping: RiQ proposes what each column is, you confirm it. There is no dedicated Shopify parser.
  • One review, one postingThe journals sit in the same session as the bank coding, reviewed and posted together.
eBayAmazonPayPalStripeEtsySquareand more, mapped
eBay statement, splitIllustrative
Sales3,847.20
Final value fees−412.65
Shipping income284.00
Postage labels−312.40
Refunds−87.50
Promoted listings−42.10
Paid out to the bank3,276.55
Payout matched on the bank sideContact: eBay

06 · Practices

Ten clients open, coding in the background.

Up to ten client sessions sit in one browser window: up to five as tabs, the rest in an overflow menu. Each keeps its own chart of accounts, VAT codes and platform connection, and processing runs in the background with live progress while you review another client.

Harbour FloristsReviewing
Kestrel PrecisionPhase 6 of 8
Northfield PackagingPosting
Illustrative clientsUp to 10 sessions

07 · Posting

Coded, approved, then posted.

The Posting Center sends the approved batch to the client’s platform over each platform’s API, or directly into IQ Books: bank lines, invoice payments and transfers, each in the form that platform expects, with the status of every line shown and any failures flagged to retry.

PlatformHow it posts
PandleBank lines, transfers and invoice payments; the deepest integration.
QuickBooks OnlinePurchases and deposits as bank transactions, invoice and bill payments, and transfers, with contact matching and the client’s VAT codes.
XeroBank transactions with contact matching. Tell the Posting Center whether a bank feed is connected: with one, lines arrive as suggested matches; without, they post reconciled.
SageBank payments and receipts, transfers and invoice payments, with Sage’s own tax codes.
IQ BooksPosted straight into the ledger of ReconcileIQ’s own accounting platform, where the same coding also runs on bank feeds.

A Xero limit, stated plainly: Xero’s API does not let any software mark transfers or invoice payments as reconciled, so those arrive as suggested matches that need one click in Xero. If you are comparing Xero’s own automation, see CodeIQ vs Xero JAX.

08 · Credits and data

Pay for the automation, never the bookkeeping.

4credits a bank line for automatic coding
0credits to code a line yourself
10credits to sync an invoice read by OCR
24hafter a session starts, it is deleted
  • Free tierPermanent, not a trial: 1,000 one-off credits, no card, enough to code 250 lines. Starter, £5 a month, adds 5,000 credits a month.
  • Session dataA session and its transactions are deleted 24 hours after the session starts. Posting history is off unless you turn it on; when on, run summaries are kept 24 months and line detail 30 days.
  • Shared patternsYour corrections are kept for your own clients. Contributions to the shared merchant patterns are opt-in, stripped of personal data and approved before they are added.
  • Account deletionAsk us to delete your account (Account, Delete account) and its sessions, transactions, learned corrections and posting history are removed.
  • ConnectionsOAuth 2.0 to every platform: we never see a password, and you can revoke access at any time. Security details.
Questions

Automated bookkeeping, answered.

What people ask about AI accounting software and ecommerce bookkeeping, and the questions we hear about CodeIQ. More in the CodeIQ FAQ.

Is there AI software for accounting?

Yes. Artificial intelligence accounting software now handles the repetitive part of bookkeeping: reading bank lines, choosing the account and VAT code, matching payments to invoices and spotting transfers. CodeIQ does that coding for books kept in Xero, QuickBooks, Sage, Pandle or IQ Books, through an eight-phase pipeline, and holds back anything it is unsure of for you to decide. It is not an AI accountant: in the UK the accounts, tax and advice still come from a qualified accountant, and CodeIQ is built for them and the businesses they look after.

Can I use AI to do my accounting?

For the bookkeeping, largely yes; for the accounting judgement, no. CodeIQ codes about 95% of recurring merchants and 80 to 85% of ones it has not seen before exactly as you would. Anything it is not sure of waits for you, and nothing posts until you approve the batch. The year end, the tax and the advice still need an accountant.

Can ChatGPT do my bookkeeping?

A general chatbot can suggest a category for a line you paste in, but it does not see your chart of accounts, the client's coding history or the outstanding invoices, and it has no connection to the ledger. CodeIQ works from all three, checks each line against invoices and transfers before suggesting an account, and posts the approved batch back to the platform.

Can AI categorise my bank statement?

Yes. Upload the statement as a CSV, an Excel file (.xlsx or .xls), a PDF, or a photo or screenshot, and CodeIQ categorises each bank transaction to an account in your chart of accounts, with a VAT code, through its eight phases. Recurring suppliers are coded from the client's own history, common merchants from shared patterns, and the rest by reading the description. Anything below the confidence threshold is held for you.

What is accounting automation software?

Software that does routine bookkeeping steps without keying: importing and coding bank transactions, setting VAT, matching receipts and invoices, and posting the result to the ledger. CodeIQ is accounting automation software for practices and businesses on Xero, QuickBooks, Sage, Pandle or IQ Books, with a human review step before anything posts.

What is ecommerce accounting software?

Accounting software, or an add-on to it, that turns a marketplace's settlement report into proper bookkeeping: gross sales, platform fees, shipping, refunds and tax split out, with the payout reconciled to the bank. CodeIQ has built-in parsers for eBay, Amazon and PayPal, and maps statements from Stripe, Etsy, Square, Shopify and other platforms with RiQ's help, then posts the journals alongside the bank coding.

Is there accounting software for Shopify sellers?

CodeIQ has no dedicated Shopify parser. A Shopify payout statement goes through the same RiQ-assisted mapping as Stripe or Etsy: RiQ proposes which column is the gross sale, the fee and the payout, you confirm it, and every line is coded against your chart of accounts.

How does CodeIQ categorise bank transactions?

Each line runs through eight phases in order: transfer detection, invoice matching, the client's own coding history, crowd-sourced merchant patterns, card category codes, semantic analysis of the description, your past corrections, and finally VAT classification. The phase that settles a line is recorded, and anything below the confidence threshold is passed to RiQ for a second look and then to you.

How accurate is the coding?

CodeIQ codes about 95% of recurring merchants and 80 to 85% of ones it has not seen before exactly as you would. For a client with no coding history, the crowd-sourced pattern database carries the common merchants on first sight. Low-confidence lines are surfaced for review, and nothing posts without your approval.

Does it post to my accounting software?

Yes. The Posting Center sends an approved batch to Xero, QuickBooks, Sage or Pandle over each platform's API, or directly into IQ Books: bank lines, invoice payments and transfers, each in the form that platform expects. In Xero, tell it whether a bank feed is connected: with one, lines arrive as suggested matches; without, they post reconciled. Xero's API does not let any software mark transfers or invoice payments as reconciled, so those always need one click in Xero.

Can CodeIQ replace Dext or AutoEntry for receipts and invoices?

Yes, for receipts and invoices: invoice OCR is built in. Drag in PDFs, PNGs or JPGs, and RiQ Vision reads the supplier, date, invoice number, totals and VAT, with a confidence score on the supplier, invoice number, date and total. The invoices are created on your platform and matched to their bank payments in the invoice-matching phase. Syncing an invoice uses 10 credits.

What is the best free AI tool for accounting?

That depends on the job, and no single tool is best for every one. For coding bank transactions, CodeIQ has a permanent free tier, not a trial: 1,000 one-off credits with no card, enough to code 250 lines automatically, and coding a line yourself is always free.

How much does it cost?

Automatic coding by CodeIQ uses 4 credits a bank line, and coding a line yourself is always free. A PDF or photo statement is converted to CSV first, at 2 credits a line (minimum 10). The free tier's 1,000 one-off credits code 250 lines. Starter at £5 a month (5,000 credits) covers about 1,250 lines a month, and Accountant at £15 (25,000 credits) about 6,250. There is no per-client or per-seat fee.

Can I run several clients at once?

Yes. CodeIQ holds up to ten client sessions in one browser, up to five as visible tabs and the rest in an overflow menu. Each session keeps its own chart of accounts, VAT codes and connection, and processing runs in the background while you review another client.

What happens to the data?

A session and the transactions in it are deleted automatically 24 hours after the session starts. Posting history is off by default; when on, run summaries are kept 24 months and line detail 30 days. Your own corrections are kept so they apply next time, and contributions to the shared merchant patterns are opt-in, stripped of personal data and approved before they join the database.

Around the coding.

CodeIQ is one of five ReconcileIQ products. Three more pick up where it leaves off:

Bank Reconciler

Checks the bank against the books once the coding is posted, and lists every difference to clear.

Bank Reconciler features → LedgerIQ

Turns the coded general ledger into management accounts, 44 analysis modules and a written board pack.

LedgerIQ features → PrepIQ

At the year end, prepares the working papers from the coded books, for practices on a ReconcileIQ practice plan.

PrepIQ features →

Let the routine lines code themselves.

Free to start: no card, 1,000 credits, and coding a line yourself is always free. Bring a real statement and see what it codes.

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