Why do I need expense categories?

Expense Categories help you to categorize your expenses and explain the nature of your expenses. Based on why and how you’ve incurred an expense, you can associate an expense category with it.

For example, if you incur an expense for a client during the business lunch, you can create an expense under the Meals and Entertainment category. Also, categories help give a clear picture of your business expenditures when you run analytic reports.

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