Categorising your expenses correctly gives you a clear picture of how your business is performing and ensures you never overpay or underpay your tax. It also keeps your in-app financial reports and tax estimates completely accurate. đ
How to categorise your expenses
When you are updating a transaction in the app, you can easily sort your business spending by following these steps:
Tap on the specific transaction you want to update.
Choose Expense or Other from the category picker.
Select the category that best matches your purchase.
If you are ever unsure what a specific category means, simply tap the info icon (âšī¸) next to it. This opens a quick summary of what the category is for and explains whether the purchase is eligible for tax relief.
Spotting non-tax-deductible expenses
The app helps you quickly identify any business expenses that are not eligible for tax relief. To see these, head to the Accounting tab and open your Profit and Loss report. Any non-deductible costs will be calculated and displayed separately underneath your total expenses section, keeping your tax estimation accurate. âī¸
Why expense categorisation matters
Keeping your spending organized helps you manage your business more efficiently:
Track your financial health: See exactly where your cash goes so you can spot trends and control your running costs.
Calculate your tax accurately: Keep precise records so you know exactly what to set aside for HMRC.
Make smarter decisions: Plan for the future using real, up-to-date financial data rather than guesswork. đ§