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, name them anyhow, including the default ones, as well as setting the category type as per your need so we can better auto-categorise expenses
- 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
- Expense owners will then be able to choose the sub-categories when making an expense report. Tip: make the names of the sub-categories as straightforward and easy to understand as possible so your users know what to choose.
- All groups and subcategories 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.