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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

  1. On your Dashboard, click the Settings gear icon (bottom left).

  2. Select Categories & tags.


Creating a Business Category

If you don’t see the categories you need, you can create custom ones.

  1. On your Dashboard, click the Settings gear icon (bottom left).

  2. Select Categories & tags.

  3. Click the blue + Category button.

  4. Enter a name for your category.

    • If creating a subcategory, select the main category in the Subcategory dropdown.

  5. Choose whether it’s an Expense or Income category.

  6. Select Usage: Business.

  7. (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

  8. Click Create.


Editing a Business Category

  1. On your Dashboard, click the Settings gear icon (bottom left).

  2. Select Categories & tags.

  3. Under Categories, find the category you want to edit and click the three-dot icon on the right.

  4. Select Edit.

  5. Make your changes, then click Update.


Deleting a Business Category

  1. On your Dashboard, click the Settings gear icon (bottom left).

  2. Select Categories & tags.

  3. Under Categories, find the category you want to delete and click the three-dot icon.

  4. 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.

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