Our Categories feature allows employees to assign expenses to a line in your chart of accounts and pre-select a tax code, without even knowing they are doing it.
Here is how you set it up
- Click on your profile image in the lower left hand corner and select Settings
- From the menu option, select Accounting - Categories tab
- You will be greeted by 11 default category groups each based on one of the 11 category types set by Mastercard - this last part is what helps us auto-categorise expenses
- You can create as many groups as you like and name them the way it fits you best.
- Under each category group you can create as many sub-categories as you would like, see examples below or in this article.
- Add the appropriate nominal codes and tax rates
- Users will then be able to choose the categories when making an expense. Tip: make the names of the categories as straightforward and easy to understand as possible so your users know what to choose.
- All groups and categories are archivable if you should ever want to reevaluate your list of categories available to the expense owners
As you can see, the category is attached to a nominal code and a tax rate - this is all done to save you time in the bookkeeping. When exporting, the right nominal code and tax rate will be applied.