Set up Tracking Categories

Tracking categories in Xero allows you to effectively monitor various areas of your business by grouping transactions based on departments, regions, or specific products. Setting these categories up not only clarifies your financial information but also showcases how well each segment of your business is performing, making it especially beneficial for businesses that have multiple income streams.

To create a tracking category, you can establish two main categories, each with tailored options based on your unique operational needs. Once these categories are in place, you can seamlessly apply them to invoices, bills, and reports, enabling you to easily compare and analyse your financial health. This approach provides you with detailed insights that support more informed decision-making by clearly illustrating how each part of your business contributes to your overall success.

Watch this video, here we learn how to set your contacts up:

Making sure your business is set up in Xero correctly before using it is crucial to ensure accurate and reliable financial information, which allows you to understand how your business is doing and make smart choices.