How to Create an Expense Sub-Category

After setting up your main expense categories, the next step is to create expense sub-categories. Sub-categories help you further organize expenses into more specific groups, making tracking and reporting even more accurate.

Follow the steps below to create a new expense sub-category:

Step 1: Access the Sub-Category Page

  1. Navigate to the software sidebar.

  2. Locate the Expenses dropdown menu.

  3. Click on Sub-Categories.

  4. A list of existing Expense Sub-Categories will appear.

Step 2: Create a New Expense Sub-Category

  1. Click the Create button at the top right corner of the page.

  2. The Create Expense Sub-Category form will appear.

  3. Fill in the required fields:

    • Sub-Category Name

    • Category (select the main category this sub-category belongs to)

    • Note (optional)

    • Status

      • Default status is Active

      • You may change it to Inactive if it is no longer needed

Step 3: Save the Sub-Category

  • Click Save to create the new sub-category.

  • Click Reset to clear the form and re-enter information if necessary.


Importance of Creating Expense Sub-Categories

Expense sub-categories add precision and structure to your expense management. They provide several benefits:

  • More Detailed Expense Tracking
    Sub-categories allow you to track expenses at a granular level (e.g., “Fuel” under “Transportation”).

  • Enhanced Reporting Accuracy
    Reports become more detailed, giving clearer insights into specific spending areas.

  • Better Cost Control
    You can identify exactly which areas are consuming the most resources.

  • Improved Budget Allocation
    Sub-categories help you allocate budgets more accurately and monitor spending against each area.

  • Supports Strategic Decision-Making
    With better visibility, you can make informed decisions to reduce expenses and optimize operations.

  • Easier Auditing
    Well-organized sub-categories lead to cleaner, more transparent financial records for audits.