Can you add new expense categories? How do you add a new expense category?

Hi matt-wright. Glad to see you in the community. Adding expense categories is a process performed from within the chart of accounts. Here's how:

1. Go to the Accounting menu, then click Chart of Accounts.
2. Click New in the upper-right hand corner.
3. Select Expense or Other Expense for Account Type. 
4. Choose a Detail Type.
5. Enter the name of the new expense category.
6. Type in all other details such as Number or Description.
7. Click Save and Close. 

Here's an article that also talks about creating new accounts and sub-accounts in QuickBooks Online

Let me know if you need more help getting up and going. 

I have QBs for small business, I don't see how to add a category

Thanks for joining this thread, @syoung6987,

The steps to add an expense category is the same for all QBO versions. You may follow the steps provided by Steve_C or use the steps below:

1. Click on the Cogwheel ⚙ icon then pick Chart of Accounts from the list.
2. In the upper right section of your COA tap New.
3. Select Expenses for the Account Type.
4. For the Detail Type, choose Other Business Expense.
5. Fill in the Name field, then hit Save and Close.
   

However, if you're referring to Item Categories, you can set it up using the steps in this article: Group your products and services into different categories.

Keep me updated on how things turn out after trying out the steps. I'll be right here to provide further assistance. Have a good one!

I have a freelancer account and cannot find any of the above steps in my account. I need to create different expense categories but it's not an option anywhere in this program. 

Thanks for joining in this conversation, @CoryP. I appreciate you for letting me know the version of QuickBooks you're using. 

Setting up different expense categories is currently unavailable in QuickBooks Self-employed (QBSE).

Instead, you can utilize the default categories available in the program as the expense categories are line up with the Schedule C tax form. 

Check out this article to help you categorize a transaction so QuickBooks matches it with the correct line on your Schedule C form. 

Let me know if you have other questions. We're always delighted to help. 

Can you help us by telling us which version of QuickBooks DOES provide the option to add categories?

I'm here to help share some insights about categories in QuickBooks, MCC2021.

The option to add categories is available in all QuickBooks Online (QBO) versions. You can follow the steps provided by my colleague above on how to add on through the Chart of Accounts.

If you're using QuickBooks Self-Employed, you can only use the default categories in the program. You can refer to this article to learn more details about this: Schedule C and expense categories in QuickBooks Self-Employed.

Feel free to post if you have any other additional questions. We're here to help.

I am not sure what to put in detail type? Trying to add an expense for continued training and courses.

Thanks

It's fantastic to see you here, @dogs101.

I can share some insights about the detail types and how it is used in QuickBooks Online. The system uses account types as components that tells how transactions hit your books. It's primary use is to organize the data on your reports and financial statements

We use Detail Types to give more information about what you can track with each account type. Each account has these subsidiary types to specifically show what it is used for. You can choose any detail type under that account, that is closest to it's role. If you can't find a detail for for training and courses, you may choose Other Business Expense or pick a different one.

For further overview, I'll  be sharing some links to help you with the account types and categories in QBO:

• Learn about detail types in chart of accounts
• Learn about the chart of accounts in QuickBooks

Come back here anytime for additional questions or concerns about account detail types. I'll be right here to help you. Have a good one!

Hello there - Following up on your comments about using QB self-employed and not being able to change the default categories. 

I'm going to provide a basic example of an issue I'm trying to tackle relating to this. I'm opening a retail store and need to add my cost of goods sold (COGS) or Inventory Expenses to QB. If I am unable to edit the default categories how can I go about doing this? Is there a way to exit self-employed mode? 

Thank you,

Jonah 

Good afternoon, @chusmeatmarket. 

Thanks for chiming in on this thread. It's great to see a new face here in the Community. 

The best way to get these categories and be able to change them, I recommend using one of our QuickBooks Online products. Review the link and see which version would best fit the features and pricing you'd like. 

If you decide to start a QuickBooks Online account, you'll need to eventually cancel your QuickBooks Self-Employed so you aren't getting charged for both. 

If you have any trouble along the way, you can always contact our Customer Support Team. We're always here to lend a helping hand. Take care! 

Hi Candace - I'm currently using Quickbooks Essentials, but an still unable to create new catagories. The only option is to catagrozie as an "uncatagorized expense"

Hello, @chusmeatmarket. 

Thanks for following up with us. 

All QuickBooks Online products allow users to create new expense categories (QuickBooks Self Employed is the only exception). That said, when you're trying to create a new category, are you getting an error message? Or what happens exactly when attempting to add a new one? 

While I await your response, let's go ahead and try some basic troubleshooting steps. Such as trying a new web browser or opening an incognito/private window. 

Here's how: 

• For Google Chrome browser, press keys: Ctrl + Shift + N
• For Mozilla Firefox browser, press keys: Ctrl + Shift + P
• For Safari browse, press keys: Command + Shift + N 

Once you're in the incognito/private window, try adding a new category. If it works, you'll want to follow the steps to clear your browser's cache in this help article: Clear cache and cookies to fix issues when using QuickBooks Online.

I'm also including the steps to create a new category below if you need them for future references. 

1. When you create an expense account, you will need to pick a category in the Create category under options.
   • 
2. After selecting the account type called Expenses, you will need to choose the detail type closer to how that account is to be used. If you're unsure, you can select General business expenses. Please note that detail types do not affect the posting of your account. QuickBooks will use the primary account type or category for your financial reports.
   • 

That should do it. Please let me know if you have any questions or concerns. I'm always around to lend a hand. Take care!

Hi there,

Looks like I wasn't asking the correct question, my bad. Let me re-phrase. Let's say I am adding a new category, is there a way to add new "Categories under"?

Back to my original example if I add Research and Development as a new category for tesitng our different products and recipes, it categorizes it under "Uncatogorized Expenses". Is there a way to add new catagories to the "categories under" section? 

I just have the information that you need to customize categories, chusmeatmarket.

Yes, there's an option to add or create more categories in your Chart of Accounts. You just to switch the settings to Accountant view. This gives you more options when managing your Chart of Accounts, 

 Just go to the Gear icon and select Switch to Accountant View. 

Please take note that this only changes the appearance and will not affect your data. Feature, menu, and button names are different in each view, but the actions are identical in most cases. 

Here's an article about this for more details: Switch between Business and Accountant view in QuickBooks Online.

Once done, go back to your Chart of Accounts and check if you can already see the box for sub-account. 

I'd also like to share a couple more of our Community articles for additional references and guidance:

• Use Account Numbers In Your Chart Of Accounts 
• Manage Default And Special Accounts In Your Chart Of Accounts 

Don't hesitate to reply to me or post more questions in the Community if you need anything else with QuickBooks. We're always here to help. 

I created the new expense item. It is in chart of accounts. How do I get it to my budget overview?

In QBSE how should you categorize 401k self contributions and profit sharing contributions?

Nope, no help at all.  I fact, so far nowhere can I add the exact expenses that MY business needs.  This should be such a basic feature - and it is a dealbreaker... I am on the free trial (thank god I didn't pay anything).  I have seen these steps and in fact all it does is create some kind of subcategory of the category, it does not create a proper category.  It also will make reporting very difficult.

I have the self employed QB. What online version of quickbooks allows you to create custom expense categories?

Hi there, @Tee15. I'm here to help you create custom expense categories in QuickBooks Online (QBO).

You can add custom expense categories in all versions of QBO (Simple Start, Essentials, Plus, and Advanced). To do so, you can refer to the steps below:

1. If you've subscribed for one, sign in to your QBO account.
2. Ensure that you're in the Business view. 
3. Next, select the Settings icon.
4. Then, choose Chart of Accounts. 
5. From there, click the New button.
6. Enter the name in the Category name field.
7. Click the Select category link and choose Expense.
8. Select Next and click Save when finished.

If you're referring to creating a new expense account, please refer to the steps in this article: Add an account to your chart of accounts in QuickBooks Online. 

I'll include this resource that you can read to know the maximum number of accounts you can add to your Chart of Accounts page. This will depend on your QBO subscription level: Learn about usage limits in QuickBooks Online.

I'm just around here in the Community to lend a hand if you have any other concerns about adding custom expense categories in QBO. Have a good day ahead and keep safe.