Categories

Classify transactions consistently, with parent/child structure where it helps.

Why categories matter

Every report you'll eventually export — income and expense summaries, the GST/HST preparation summary — is only as useful as the categories behind it. A transaction with the wrong category doesn't just look wrong on screen; it shows up in the wrong line of every report that reads from it.

Parent and child categories

Categories can be nested one level — a parent like “Vehicle Expenses” with children like “Fuel” and “Maintenance.” Use this when you (or your accountant) want both the detail and the roll-up: transactions post to the specific child category, and reports can summarize at the parent level.

You don't have to nest anything — a flat list works fine for a simple business.
Nesting is most useful when you already know your accountant wants a specific breakdown, not as a default habit.

Keeping your list usable

TipA category list that grows one one-off category at a time turns into a list nobody can navigate. Before adding a new category for a single unusual transaction, check whether an existing one already fits closely enough.

Categories are set per client — see setting up clients— so a category list you've refined for one business doesn't affect another.

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