LessAccounting lists default expense categories that many businesses use, but you can set up your own custom categories too! Here's how:
- Click Settings in the top navigation
- Choose Expense Categories
- Click the "Add a custom expense category" link near the top
As you will see, you can also remove categories from this page. Please note that removing a category does NOT delete the transactions associated with it. It simply deletes that category, meaning any expenses that were assigned to it will no longer have a category assignment and will need to be re-categorized. If you've just started with us, right now might be a good time to delete any categories from that list that you feel you will never use.
(Please note that there are a few categories that you cannot remove, such as Contract Labor, Wages, Non-Deductible Expense, and Owner Draws. That is because these categories are tied to specific reports. Even if you don't use them, we still need them in your account to calculate certain data correctly.)
You can also edit the name of a category, and it will update all existing expenses categorized as that.
Pro Tip: Use tags to group expense in other way beyond tax categorization.
A Few Tagging Examples, Expenses Grouped by:
- Travel Trip (Conferences, Business Trips)
- Project Spending (Are you making money per project?)
- Marketing Channel or Marketing Intiative. (PPC, Banner Ads)
- Products you resell (web hosting, domain registration)
- Services you resell (logo, design, legal)