How do I add categories to the P&L statement? Missing expense categories such as tools, not added to a client invoice.

Setting up new expense categories intended for Tools is easy, lynneellen. Let me guide you through the process in a breeze.

Start by going to the Chart of Accounts page to create one smoothly. I'll show you how.

1. Navigate to the Transactions menu on the left panel and select Chart of accounts.
2. On the COA page, click the New button for the New Account window to appear.
3. Click the Account Type drop-down and choose Expenses.
4. From the Detail Type drop-down, pick the category you wish to add.
5. Enter a Name for the new account like Tools Expense. You can also add a Description.
6. Press the Save and Close button.

Once saved, you can now add this account to the item on your Product & Services list. Once you run the Profit & Loss report, it will also be there.

I'm adding these resources containing instructions to tailor your reports according to your needs:

• Customize reports in QuickBooks Online
• Customize reports in QuickBooks Online using a modern view

Furthermore, check out these guides to explore the improvements made and record your receivables:

• See what’s new with estimates and invoices in QuickBooks Online
• Record invoice payments in QuickBooks Online

Assisting you in making an expense account is my priority. Comment in this thread if you have other questions regarding invoices or cost transactions. Have a wonderful day.

Thank you! I have been adding items into tools but the category was not listed on the P&L as a line item category.