Expense categories organize spending so you can analyze costs and prepare accurate reports.

Why categories matter

Categories group expenses by type — for example fuel, materials, software, or travel. Reports and charts use categories to show where money is going.

Create or edit a category

1. Go to Sales → Expenses.
2. Open expense category management (categories setup).
3. Click New Category or edit an existing category.
4. Enter the category name and optional description.
5. Save.

Assign categories when recording

Every expense should have a category selected at entry time. Consistent categorization makes month-end review faster.

Reporting

Use expense reports to view totals by category, compare billable vs non-billable spending, and track trends over time.

Best practices

• Keep the category list focused — avoid duplicate or overly granular names.
• Align category names with how your accountant expects to see expenses.
• Train staff to pick the closest category rather than leaving expenses uncategorized.

Related articles

• Record an Expense
• Billable Expenses and Client Reimbursement
• Recurring Expenses