Why categorize expenses
Categories help you understand where your money goes. Instead of a flat list of transactions, you can see that you spent $2,000 on supplies, $1,500 on marketing, and $800 on utilities this month. This makes budgeting and tax preparation much easier.
Navigate to: Settings → Expense Categories
Default categories
Wemu comes with common expense categories:
- Rent & Utilities
- Supplies & Materials
- Marketing & Advertising
- Payroll & Contractors
- Equipment & Tools
- Travel & Transportation
- Software & Subscriptions
- Insurance
- Miscellaneous
Creating custom categories
- Go to Settings > Expense Categories
- Tap + Add Category
- Enter a category name
- Optionally choose a color and icon
- Save
Screenshot: The expense category list with color-coded categories and edit options
The expense category list with color-coded categories and edit options
Editing categories
To rename or update a category:
- Open Settings > Expense Categories
- Tap the category you want to edit
- Make your changes
- Save
Existing expenses assigned to this category will update automatically.
Deleting categories
If you delete a category, expenses in that category become uncategorized. They're not deleted, just unassigned. You can reassign them to a different category later.
Best practices for categories
- Keep it simple — 8-15 categories is usually enough for most businesses
- Be consistent — Decide once what goes where and stick with it
- Think about tax reporting — Your categories should roughly align with expense deductions you'll claim
- Review periodically — Every few months, check if your categories still make sense
Tip: Name categories based on how you'll want to see them in reports. If you want to see "Marketing" as a separate line in your expense report, make it its own category rather than lumping it under a generic "Business" category.
Category-based budgeting
Once you have good expense categories, you can set monthly budgets per category. For example, you might budget $500 for supplies and $300 for marketing. Wemu can show you how you're tracking against those budgets in your reports.