Set Up Expense Categories

Create practical expense categories so spending reports are easier to read and profit calculations are more useful.

Step-by-step guide

1. 1

   Open expense category settings

   Go to Expenses or Expense Categories from the business dashboard. If category management is available in your app version, you can add, edit, or deactivate categories there.

2. 2

   Create simple category names

   Use names that your team understands, such as Rent, Salary, Transport, Utilities, Packaging, Marketing, Repairs, Bank Charges, or Miscellaneous.

3. 3

   Avoid too many categories

   Too many categories make reports harder to read. Start with a short list and add more only when you need better tracking.

4. 4

   Assign every expense correctly

   When recording an expense, choose the best matching category. Correct categorisation helps expense reports and profit reports reflect the real cost of your business.

5. 5

   Review categories periodically

   At month end, check whether expenses are being added to the right categories. Rename unclear categories and avoid using Miscellaneous for regular spending.