How to Choose Useful Expense Categories
Categories should be broad enough to reuse but specific enough to support decisions.
Good structure
- Payroll or Salary
- Rent
- Utilities
- Advertising and Marketing
- Insurance
- Office Supplies
- Repairs and Maintenance
- Professional Fees
Use the same category for the same kind of expense every time. The payee can vary while the category remains the same—for example, several employees may all use the Salary category.