The app uses categories as a way to group your transactions so that you can keep track of the money coming in and going out of your business. They also help you stay organised for tax time and simplify your tax reporting.
Each time you buy or sell something, you’ll categorise it. For example, whenever you buy something for your home office, you could categorise it as Office Expenses. This helps you know how much you’re spending on your office.
If you’re registered for GST, you’ll see that each category has a tax code assigned to it. This means when you use a category, the right amount of GST will be automatically calculated.
The app comes with a set of categories that are ready to use.
Payment categories are the default bank accounts for payments in and out
Categories are used to group your transactions. Payment categories are a bit different because they represent the bank and credit card accounts you typically use to make and receive payments.
You can set the payment categories in the app, so you won’t need to choose a bank account every time you record a payment.
There’s a payment category for expenses (money out) and income (money in):
Expense payment category – the default bank or credit card account that your expenses are paid from.
Income payment category – the default bank account the money coming into your business is paid into.