How to Organise Expenses with Categories
Categories turn a list of payments into a report you can act on — and they are the first thing your accountant will ask about.
Every expense carries a category. Categories are what the Expenses by category report groups on, what budgets are set against, and what an accountant maps to their chart of accounts — so a little care here pays back every month.
To add or change categories
- Click Expenses in the left menu.
- In the Category field on any expense, pick an existing category or create a new one.
- Use the category manager to rename a category or remove one you no longer use.
Fewer, broader categories beat many narrow ones. Rent, Utilities, Transport, Salaries, Supplies, Professional fees and Marketing will carry most small businesses, and a report with seven meaningful lines is more useful than one with forty.
Renaming a category updates it everywhere, including on expenses already recorded, so historical reports stay consistent.
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