How to Add an Expense Category in Xero

Quick summary

Adding an expense category in Xero means creating a new account in the Chart of Accounts with the account type set to Expense. This lets you accurately classify and track business spending across your Xero organization.

Steps

1. On the Xero main dashboard, go to the top menu bar and click Accounting.
2. Select Chart of Accounts from the dropdown list of options.
3. Click Add Account to open the new account form.
4. Open the Account Type drop-down menu.
5. Select Expense from the available account type choices.
6. Fill in all other required details into their respective input fields.
7. Review your entries and click Save to confirm.
8. The new expense category will now appear in your Xero Chart of Accounts.