Managing Business Categories
Overview
Business categories are labels that track your business income and expenses. Every transaction must be assigned to a category, which determines how it appears in reports and on tax forms like Schedule C.
Managing your categories — adding new ones, editing existing ones, or deleting unused ones — ensures your financial records stay accurate, flexible, and tailored to your business needs.
Why Managing Categories Matters
Accurate Reporting → Clean categories drive profit & loss reports, cash flow analysis, and tax filings.
Tax Compliance → Categories map to IRS Schedule C lines, so proper management prevents errors or missed deductions.
Business Insights → Customized categories reveal spending patterns and help you make informed business decisions.
Flexibility → Adding or refining categories ensures your system evolves with your business.
💡 Example: A consultant might add a “Software Subscriptions” category to track recurring tools like Zoom or Adobe, while a retailer might add “Shipping & Handling.”
Things to Note
When you create a business, its structure and tax form determine pre-generated categories.
Transactions linked to a business display a business icon next to the category (appears on mobile when viewing the transaction).
⚠️ Note: Form 1120-S and Form 1065 are not currently supported for reporting.
Viewing Your Business Categories
On your Dashboard, click the Settings gear icon (bottom left).
Select Categories & tags.
Creating a Business Category
If you don’t see the categories you need, you can create custom ones.
On your Dashboard, click the Settings gear icon (bottom left).
Select Categories & tags.
Click the blue + Category button.
Enter a name for your category.
If creating a subcategory, select the main category in the Subcategory dropdown.
Choose whether it’s an Expense or Income category.
Select Usage: Business.
(Optional) To map the category to tax information, click Tax Info:
Toggle Business on
Select your Tax Form
Choose the best-fit Tax Line Item
(Optional) Adjust the Tax Group by clicking Select tax groups, then click Update
Click Create.
Editing a Business Category
On your Dashboard, click the Settings gear icon (bottom left).
Select Categories & tags.
Under Categories, find the category you want to edit and click the three-dot icon on the right.
Select Edit.
Make your changes, then click Update.
Deleting a Business Category
On your Dashboard, click the Settings gear icon (bottom left).
Select Categories & tags.
Under Categories, find the category you want to delete and click the three-dot icon.
Select Delete.
A warning screen will appear. Click Delete to confirm.
💡 Tip: If the category already has transactions, consider hiding it instead of deleting, so historical reports remain accurate.
Scenario Examples
Freelance Consultant → Adds a “Client Meals” category to track 50% deductible business meals separately from personal dining.
Web Designer → Creates a “Stock Photos & Graphics” category for project-specific creative costs.
Online Retailer → Adds “Marketplace Fees” to track Etsy or Amazon charges for easier expense analysis.
Business Attorney → Uses “Professional Liability Insurance” as a custom category for direct mapping to Schedule C insurance lines.
Best Practice
Review your categories quarterly. Add detail where it helps decision-making, hide unused categories to keep your list clean, and always ensure tax mappings are up to date before filing season.