How expense categories work

Expense categories explain what the money was spent on. Good category choices make reports, insights, and business decisions much clearer.

Common categories

• Stock/Supplies is for goods, materials, or supplies bought for the business.
• Transport is for fares, fuel, delivery, or travel costs.
• Rent is for shop, stall, office, or business space rent.
• Wages is for staff pay, casual labour, or worker payments.
• Utilities is for electricity, water, internet, or similar running costs.
• Airtime/Data is for phone credit, bundles, or business communication costs.
• M-PESA/Bank Fees is for transaction charges and banking fees.
• Permits is for licences, council payments, or official business permits.
• Marketing is for adverts, posters, online promotion, or customer acquisition.
• Repairs is for fixing equipment, premises, tools, or business assets.
• Loans is for loan payments or finance-related business payments.
• Other is for expenses that do not fit the main categories.

How to choose the right category

• Choose the category that best explains why the money left the business.
• Use Stock/Supplies for items bought to sell or use in business operations.
• Use Transport for movement-related costs.
• Use Wages for people paid to work.
• Use Other only when none of the named categories fit.

Why categories are useful

• They show where money is going.
• They help identify high costs.
• They make reports easier to read.
• They help compare spending across weeks and months.
• They make accountant review easier.