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Expense categories

Expense categories explained
Written by Johann Oberholzer
Updated 8 months ago

When you're reviewing and sorting your transactions, we give you a list of categories to choose from. To help you select the right one, here's a quick run-down on the available categories:

Expense Categories

  • Office expenses - cost of space in your home used for your self-employed work. This may also include expenses for postage, stationery, printing, and small office equipment
  • Advertising - Cost of promoting and selling your products or services
  • Costs incurred on a Job (COGS) - General costs that relate to work you have performed (e.g. materials)
  • Bank Fees - Bank charges related to business spending, including overdraft fees.
  • Credit Note - A credit note (also known as credit memo) is issued to indicate a return of funds in the event of an invoice error, incorrect or damaged products, or a purchase cancellation.
  • Consulting & Tax Accounting - Accountant, legal or other consulting fees you pay for self-employed work including tax preparation.
  • Depreciation - The decrease in the value of assets (writing down) from the cost of purchase over its useful life span. Businesses depreciate long-term assets for both accounting and tax purposes.
  • Entertainment - Meals and entertainment costs for clients related to your self-employed work. Or personal, non-local meals while travelling.
  • Freight & Courier - Cost of delivery, freight, and postage you pay in the year of your self-employed work
  • General Expenses - Correct category if none of the others is appropriate
  • Insurance - Costs to cover your assets and protect you.
  • Interest expenses - Interest you pay on money borrowed for self-employed work.
  • Motor Vehicle Expenses - Expenses relating to your motor vehicle
  • Rent - Cost of renting land and buildings used in generating your self-employed income
  • Wages & Salaries - Cost to employ any additional staff
  • Utilities - General utility expenses which may include electricity, gas, water/sewage and garbage disposal or other expenses required to run your business.
  • Subscriptions - On-going subscriptions for services that your business requires. Sole, as an example, may be an on-going monthly subscription.
  • Telephone & Internet - Cost of your telephone and internet costs
  • Travel - Travel expenses you pay to earn business and professional income, including public transportation fares, hotel accommodations and meals
  • Transfer of funds between accounts - Used to capture the movement of funds between two accounts.
  • Credit Card payment - Principal portions of payments you make towards a credit card balance. (Principal isn't deductible; interest is.)
  • Income Tax Expense - Legislative amounts where your business has been required to pay tax.
  • Donations - Amounts given to other individuals or organisations as donations. 
  • Contractors and Sub Contractors Costs - Costs associated with engaging contractors / subcontractors who perform services for your business.

If you require any new categories, please click on the "Get in Touch" button below. We will get back to you as soon as possible.

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