Categorising expenses in OFX helps you organise your business spending, improve reporting accuracy, and ensure compliance with your accounting processes. You can use default categories, sync categories from Xero, or create your own custom expense categories.

Prerequisites:
Before you categorise expenses, ensure the following:

• You have permission to access the Expenses section.

• If your account is connected to Xero, your expense categories will sync automatically from Xero.

• If your account is not connected to Xero, you can set up custom categories directly in OFX.

Next Steps:

To categorise expenses, follow these steps:

1. Log into your OFX account.

2. Navigate to the Expenses tab in the left sidebar menu.

3. Set up or select expense categories:

   • If using Xero integration:
     a. Your expense categories (including account codes, tracking categories, and tax options) will automatically sync from Xero.
     b. You can edit the expense category by selecting the updated expense for the dropdown on the applicable expense.

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   • If not using Xero:
     a. Create an expense. Once the expense is created, update the expense category by selecting from the dropdown for the applicable expense.

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Why is this important:

Properly categorising expenses ensures accurate financial reporting, simplifies tax preparation, and helps you track spending by type or department. It also supports compliance with internal policies and external accounting requirements, especially if you integrate with platforms like Xero.

Related FAQ Articles:

• How to set up custom expense categories?

• How to set up custom Tax rates and categories?

• How do i create a budget with expense categories ?