Transaction categories are the building blocks of your business bookkeeping. Every time you buy or sell something, the app assigns it a category. This determines exactly which financial report it appears in so your records stay completely accurate. 📊
The five main category types
Your transactions will fall into one of five core areas:
Income: The money your business receives from sales, interest, or other revenue streams.
Expense: The costs you run up to keep your business moving, such as advertising, staff, and premises costs.
Asset: Anything of value that your business owns, plus money owed to you. This includes your business equipment, account balance, or outstanding sales invoices.
Liability: Any money that your business owes to others but hasn't paid yet, like an outstanding supplier invoice or an unpaid bank loan.
Equity: The overall value of your business at any given moment, calculated by taking away your liabilities from your assets.
Can I customise my categories?
To make it simple for you to manage your taxes directly from the app in the future, we keep our categories perfectly aligned with official HMRC tax return fields. Because of this legal mapping, you cannot manually add or edit your own categories at the moment.
We have carefully designed this setup based on how your business is structured:
For sole traders: Our categories map directly to HMRC tax return forms, keeping your Self Assessment straightforward.
For limited companies: Because HMRC guidance is more flexible for corporate accounts, we have included extra cost categories to give you a detailed view of your business spending.
This structure allows the app to calculate accurate tax estimates and prepares your account for direct tax filing in the future. 🚀
Will you add more categories in the future?
Yes, we are always working to improve the app and make running your business easier. If there is a specific category you need, you can let us know and share your feedback by completing our quick two-minute survey here. ✅