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Sarchoc
November 7, 2022
Question

Operating expenses categories

  • November 7, 2022
  • 1 reply
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Operating expenses using a credit card categories 

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I’m a self employed cleaner. And need to by supplies to use as these will be used everyday.
I am using a credit card to buy supplies and then pay it off when the date is due. What category do I use in transactions? Does it just come under other business supplies? And also what category does a credit card come under. I haven’t linked a credit card to the account either.
im just so confused

1 reply

JessT
JessT
November 8, 2022

Hi Sarchoc!

 

It is best if you connect your credit card and bank accounts to download and categorize your transactions. I cannot advise on the categories to use as this is an accounting question. I'd recommend consulting an accounting professional instead to make sure your reports are accurate.

 

Categorize the downloaded transactions under your card:

 

  • Purchases can be tracked under Business, but you have to choose the appropriate category
  • Payments to card dues: payment to credit cards can be categorized as Credit Card Payment

 

Categorizing downloaded transactions under your checking or savings account is just the same as categorizing credit card transactions:

 

  • Purchases can be tracked under Business, but you have to choose the appropriate category
  • Payments to card dues: payment to credit cards can be categorized as Credit Card Payment

 

If you don't want to connect your credit card or bank account, you can add the transactions manually. Then, select the correct category for the business expense transactions and use the Credit Card Payment category for CC payments. 

 

Please note that manually added transactions will automatically be recorded under an account named Cash, which you can rename later on.

 

Please don't hesitate to go back to this thread if you have other concerns.

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