20 IRS Expense Categories for Small Business
Expense categories for small business are the IRS-defined buckets you sort every business transaction into so you can claim the right deductions and keep clean books. Getting them right means you pay less tax, file faster, and see where your money goes.
This guide covers the 20 expense categories most small businesses use on Schedule C. The form has a few more lines, such as depletion. Several categories overlap, and each one below lists what qualifies and examples.
Why Expense Categories Matter More Than You Think
Expense categorization is more than an accounting chore. It affects three things:
- Your tax bill. Categories help you claim the deductions you qualify for, and a deductible expense reduces your taxable income. Expenses that land in the wrong bucket or get skipped entirely can go undeducted. A category does not make an expense deductible.
- Your records. Clear categories make it easier to answer IRS questions with receipts. A large “other expenses” line is harder to explain than specific lines.
- Your business decisions. Properly categorized expenses let you see how much of your revenue goes to advertising or that vehicle costs doubled this quarter. That is actionable data.
Start with our chart of accounts guide when setting up your books for the first time. It explains how these categories fit into your overall bookkeeping system.
Schedule C Expense Categories 1 to 10
Sole proprietors, single-member LLCs and most freelancers file Schedule C (Form 1040), which has these categories. S-corps and partnerships use different forms with similar categories.
Line numbers are from the 2025 Schedule C, the latest version the IRS has published as of October 2026. Check them against the 2026 form when the IRS posts it. The form also has depletion (line 12) and an energy efficient commercial buildings deduction (line 27a), which this list leaves out.
Every category below has a line on the form, and your books need one more label in between: an account number. The diagram traces one receipt from the page to the return.
1. Advertising
Schedule C line 8.
| Detail | Info |
|---|---|
| What qualifies | Any cost to promote your business to potential customers |
| Examples | Google Ads, Facebook/Instagram ads, business cards, flyers, website hosting, SEO services, trade show booth fees, sponsorships, branded giveaways costing $4 or less |
Advertising is one of the broadest categories. Costs whose primary purpose is getting your business in front of customers belong here. An item that costs $4 or less, has your business name clearly and permanently imprinted and is one of a number of identical items you distribute widely is not a gift, and neither are signs, display racks or other promotional material used on the recipient’s business premises, so the $25 gift limit does not apply to them (IRS Publication 463). Other items given to clients are generally gifts. Many bookkeepers also put website hosting and domain registration here, a common bookkeeping convention rather than an IRS rule. Ask your tax preparer how to treat website design or build fees before you deduct them.
2. Car and Truck Expenses
Schedule C line 9.
| Detail | Info |
|---|---|
| What qualifies | Business use of your vehicle. You can deduct either actual expenses or the standard mileage rate |
| Examples | Gas, oil changes, tires, repairs, insurance, lease payments, parking, tolls (all prorated to business use percentage) |
| 2026 standard mileage rate | 72.5 cents/mile for January 1 to June 30, 2026 and 76 cents/mile for July 1 to December 31, 2026 |
You must choose between the standard mileage rate and actual expenses for each vehicle. The standard mileage rate is simpler: track your miles. Actual expenses require keeping every receipt but often yield a higher deduction for expensive vehicles.
Driving from your office to a client meeting counts. Commuting from home to your regular workplace does not. A home office that qualifies as your principal place of business makes daily trips from home to another work location in the same trade or business deductible (IRS Publication 463).
3. Commissions and Fees
Schedule C line 10.
| Detail | Info |
|---|---|
| What qualifies | Payments to non-employees for sales or services, plus transaction fees |
| Examples | Sales commissions to independent reps, referral fees, credit card processing fees (Stripe, Square, PayPal), marketplace fees (Etsy, Amazon), finder’s fees |
Credit card processing fees fit here, not under “bank fees” or “office expenses.” Treating them as line 10 is a common bookkeeping convention, since Schedule C does not name processing fees.
4. Contract Labor
Schedule C line 11.
| Detail | Info |
|---|---|
| What qualifies | Payments to independent contractors who are not your employees |
| Examples | Freelance designers, virtual assistants, subcontractors, consultants, 1099 workers |
You generally must issue a 1099-NEC to a contractor you pay $2,000 or more in a year for payments made in 2026 ($600 for payments made before 2026). The processor reports card payments on Form 1099-K, not on your 1099-NEC, even when no 1099-K is issued. The same applies to payments through a third party settlement organization such as a payment app or marketplace network. Direct bank transfers, and transfer services that are not third party settlement organizations, still count toward the 1099-NEC. Keep this category separate from wages (which covers W-2 employees). The IRS treats them differently.
The diagram shows where each type of worker payment lands.
5. Depreciation and Section 179
Schedule C line 13.
| Detail | Info |
|---|---|
| What qualifies | The cost of business assets spread over their useful life, or deducted immediately under Section 179 |
| Examples | Computers, machinery, furniture, vehicles, equipment, building improvements |
| 2026 Section 179 limit | $2,560,000 for tax years beginning in 2026 |
Depreciation spreads the cost of an asset over several years. A $2,000 business laptop can be deducted in full using Section 179 or bonus depreciation, or depreciated over several years. Annual amounts depend on the depreciation method and convention.
Confirm the choice with your tax preparer. Income limits, state rules and recapture on a later sale can change the result.
6. Employee Benefit Programs
Schedule C line 14.
| Detail | Info |
|---|---|
| What qualifies | Benefits you provide to employees (not yourself if you are a sole proprietor) |
| Examples | Health insurance premiums, life insurance, dependent care assistance, education assistance, accident insurance |
Sole proprietors: your own health insurance is deducted on a different line of your tax return (Line 17 of Schedule 1), not here. This category is for employee benefits only.
7. Insurance (Other Than Health)
Schedule C line 15.
| Detail | Info |
|---|---|
| What qualifies | Premiums for business-related insurance policies |
| Examples | General liability, professional liability (E&O), product liability, commercial property insurance, workers’ compensation, business interruption insurance, cyber liability |
Do not include vehicle insurance here if you are using actual vehicle expenses. That goes under car and truck expenses. Health insurance for employees goes under employee benefit programs. This category covers everything else.
8. Interest (Mortgage and Other)
Schedule C line 16a for mortgage interest paid to banks, line 16b for other interest.
| Detail | Info |
|---|---|
| What qualifies | Interest paid on business debts and loans |
| Examples | Business loan interest, business credit card interest, line of credit interest, mortgage interest on business property, equipment financing interest |
Only the interest portion is deductible, not the principal payments. Mixed-use credit cards deduct only the interest on business charges. Keep a separate business card; our bookkeeping basics guide explains why.
9. Legal and Professional Services
Schedule C line 17.
| Detail | Info |
|---|---|
| What qualifies | Fees paid to attorneys, accountants, CPAs, tax preparers, and other professionals |
| Examples | Tax preparation fees, legal consultations, contract review, accounting services, bookkeeping services, financial planning |
People often forget smaller professional fees. Examples are the $200 you paid to have a contract reviewed, the $150 for notarization and the $75 consultation with a tax advisor. They all count. LLC formation costs can fall under the startup and organizational cost rules instead. You can elect to deduct up to $5,000 of each, reduced when the costs exceed $50,000. The remainder is amortized.
10. Office Expenses
Schedule C line 18.
| Detail | Info |
|---|---|
| What qualifies | Recurring costs of running your office that are consumed quickly |
| Examples | Printer ink and toner, paper, pens, sticky notes, stamps and postage, small desk accessories, cleaning supplies for your office |
Office expenses are the low-cost, consumable items that run your workspace. Supplies are the items used up in delivering your product or service. Software subscriptions are covered under ambiguous expenses below.
The next diagram groups every Part II expense line on the form, including the two this list leaves out.
Schedule C Expense Categories 11 to 20
11. Pension and Profit-Sharing Plans
Schedule C line 19.
| Detail | Info |
|---|---|
| What qualifies | Contributions to employee retirement plans |
| Examples | SEP-IRA contributions, SIMPLE IRA employer match, 401(k) employer contributions |
| 2026 annual additions limit | $72,000 per participant for defined contribution plans |
Your own SEP-IRA or solo 401(k) contributions are deductible on Schedule 1, Line 16, not here. This line is for contributions you make on behalf of employees.
12. Rent or Lease
Schedule C line 20a (vehicles, machinery, and equipment) and line 20b (other business property).
| Detail | Info |
|---|---|
| What qualifies | Payments for business property or equipment you rent or lease |
| Examples | Office or retail space rent, warehouse rent, equipment leases (copiers, machinery), co-working space membership, storage unit rental |
Home rent or mortgage interest is partially deductible through the home office deduction, not this line. This category is for separate business locations or leased equipment.
Co-working space memberships count here. A $300/month WeWork desk is $3,600/year in rent deductions.
13. Repairs and Maintenance
Schedule C line 21.
| Detail | Info |
|---|---|
| What qualifies | Costs to fix or maintain business property and equipment (not betterments, restorations or changes to a new use) |
| Examples | Computer repairs, HVAC servicing, plumbing fixes in your office, equipment tune-ups, parking lot maintenance, painting |
A cost that betters the property, restores it or adapts it to a new use is generally capitalized and depreciated. Routine maintenance that keeps it in ordinary working condition is a repair you deduct now. Servicing an HVAC system each year is a repair, and replacing the whole system is an improvement. The IRS sets out the test in its tangible property regulations guidance.
The diagram sums up the test.
14. Supplies
Schedule C line 22.
| Detail | Info |
|---|---|
| What qualifies | Materials and supplies consumed in running your business, not included in cost of goods sold |
| Examples | Shipping supplies, cleaning products (for a cleaning business), photography props (for a photographer), backdrop paper |
Supplies are industry-specific. A photographer’s backdrop paper is a supply. A consultant’s supplies might be minimal. The form labels line 22 “Supplies (not included in Part III)”. Materials that go into products you sell are cost of goods sold in Part III, not supplies. A baker’s flour and other ingredients are an example. The unifying thread: supplies are used up in running your business.
15. Taxes and Licenses
Schedule C line 23.
| Detail | Info |
|---|---|
| What qualifies | Business taxes and license fees (not federal income tax or self-employment tax) |
| Examples | State and local sales tax imposed on you as the seller, business license fees, professional license renewals, employer’s share of Social Security and Medicare taxes, federal unemployment tax, real estate and personal property tax on business assets |
Federal income tax and self-employment tax are not deductible here. Most other business taxes belong here. These include sales tax imposed on you as the seller, property tax on business assets, license fees and the employer portion of payroll taxes. Sales tax imposed on the buyer that you collect and pass on to the state is not income or a deduction. Sales tax imposed on you as the seller is deductible here, and any amount you collected from buyers must also be included in gross receipts. Sales tax you pay on business purchases is generally part of the cost of the item, not a taxes and licenses expense. A sole proprietor’s own state income tax is not a Schedule C expense (IRS Schedule C instructions).
16. Travel
Schedule C line 24a.
| Detail | Info |
|---|---|
| What qualifies | Costs of traveling away from your tax home for business, when the trip requires sleep or rest |
| Examples | Airfare, hotel stays, rental cars, ride-shares (Uber/Lyft), baggage fees, conference travel, client visit travel, tips for travel-related services |
You are traveling away from home when your duties require you to be away from your tax home substantially longer than an ordinary day’s work and you need sleep or rest to meet the demands of your work. A trip that does not meet this test is local transportation, deductible as car and truck expenses or other transportation costs, not travel (IRS Publication 463).
You can deduct 100% of transportation and lodging costs. Meals during travel are generally subject to the 50% limit (see below). Travel costs for a spouse, dependent or other person are deductible only under three conditions. That person must be your employee. The trip must have a bona fide business purpose. The expense must otherwise be deductible by that person.
17. Meals
Schedule C line 24b, deductible meals.
| Detail | Info |
|---|---|
| What qualifies | Food and beverages for business purposes, generally subject to the 50% deduction limit |
| Examples | Client lunches and dinners, meals during business travel, food at business meetings, meals at conferences |
Business meals are generally 50% deductible in 2026. A $100 client dinner generally yields a $50 deduction. Employer-provided meals changed after 2025: the 50% deduction that applied through 2025 to employer-premises and de minimis meals has been eliminated (IRS Publication 15-B), so team meals during working sessions at your workplace may no longer qualify at 50%.
The bar shows that split.
Records back the deduction. For every meal, record five things:
- The amount
- The date
- The place
- The business purpose
- Who was present
Without these, the deduction can be disallowed.
18. Utilities
Schedule C line 25.
| Detail | Info |
|---|---|
| What qualifies | Utility costs for your business location |
| Examples | Electricity, gas, water, internet, phone (business line or business percentage of personal phone), trash removal, security monitoring |
Home utility costs are partially deductible through the home office deduction. A separate business location puts the full utility cost here.
Your cell phone is deductible to the extent you use it for business. A phone used 60% for business deducts 60% of the bill under utilities.
19. Wages
Schedule C line 26.
| Detail | Info |
|---|---|
| What qualifies | Salaries, wages, and other compensation paid to W-2 employees |
| Examples | Employee salaries, hourly wages, bonuses, overtime pay, commissions paid to employees (not contractors) |
This includes only W-2 compensation. Contractor payments go under contract labor or commissions and fees. Payroll taxes you pay as the employer go under taxes and licenses, not here.
20. Other Expenses
Schedule C line 27b, the total from line 48 in Part V.
| Detail | Info |
|---|---|
| What qualifies | Any legitimate business expense that does not fit neatly into the categories above |
| Examples | Business-related education and training, trade publication subscriptions, business-management software subscriptions, bank fees, bad debts previously included in income, uniforms |
The “other” category is a catch-all, so use it only for items with no better home. Bad debts count only for amounts you already included in income and know to be worthless; an unpaid invoice you never reported as income is not a deduction. An other expenses line larger than your specific categories is harder to explain, so check whether items fit a named line. Genuine charitable contributions are not deducted on Schedule C. Common items that belong here are continuing education, professional association dues and business-related subscriptions. Conference fees also go here, apart from the travel and meals.
Schedule C Line Map: 30 Common Expenses
Each of 30 common expenses maps to one Schedule C line and one chart of accounts number, and the table below adds the record to keep and a common exception.
Line numbers are from the 2025 Schedule C. Account numbers come from the Service Business chart of accounts template. Rows marked “closest” use the nearest account in that template. Rows that say “No Service account” have no match there, so add an account in your own books.
Accounts and lines do not always match one to one. Four of the accounts below feed more than one line, as the diagram shows.
| Expense | Schedule C line | Chart of accounts number | Record to keep | Common exception |
|---|---|---|---|---|
| Software subscriptions | 27b (via line 48) | 5080 Software & Subscriptions | Monthly invoice or card receipt showing the plan | Marketing tools go to line 8 by convention; software bought outright is generally capitalized and depreciated, not deducted here |
| Bank fees | 27b (via line 48) | 5010 Bank & Merchant Fees | Monthly bank statement | Card processing fees go to line 10 by convention, not here |
| Merchant and card processing fees | 10 | 5010 Bank & Merchant Fees | Processor monthly fee report or statement | Line 10 by convention; record sales gross and deduct the fees, do not net them |
| Business mileage | 9 | 5090 Travel & Meals (closest) | Mileage log with date, miles, and business purpose | Commuting from home to a regular workplace is not deductible |
| Parking and tolls | 9 | 5090 Travel & Meals (closest) | Receipt or toll statement with the trip purpose | Parking and tolls for personal trips are not deductible |
| Business phone | 25 | 5040 Internet & Phone | Phone bill plus a note of the business-use share | A personal phone deducts only the business-use share |
| Internet service | 25 | 5040 Internet & Phone | Monthly bill plus a note of the business-use share | A home connection deducts only the business-use share |
| Home office | 30 | No Service account | Square footage of the space and the method used | The space must be used regularly and exclusively; use Form 8829 or the simplified method |
| Contractor payments | 11 | 5020 Contractor / Subcontractor | Form W-9, invoice, and proof of payment | Card payments and payments through a payment settlement network go on the processor’s 1099-K, not your 1099-NEC |
| Health insurance for employees | 14 | 5120 Employee Benefits | Insurer invoice and payroll records | Your own premiums as a sole proprietor go on Schedule 1, not line 14 |
| Business insurance | 15 | 5030 Insurance | Policy declarations and premium invoices | Health insurance is not line 15; vehicle insurance goes to line 9 under actual expenses |
| Accountant fees | 17 | 5060 Professional Services | Engagement letter and paid invoice | Fees for personal matters are not business expenses |
| Legal fees | 17 | 5060 Professional Services | Invoice that states the matter | Fees to buy an asset generally add to the asset’s cost; LLC formation fees follow the startup cost rules |
| Advertising | 8 | 5000 Advertising & Marketing | Ad platform invoice or receipt | Client gifts: $25 per recipient per year. Not gifts: identical giveaways of $4 or less clearly and permanently imprinted with your business name and given widely, and signs or displays for their business premises |
| Website hosting and domain | 8 | 5000 Advertising & Marketing | Hosting and domain renewal invoices | Line 8 by convention; a personal site is not a business expense |
| Office supplies | 18 | 5050 Office Supplies | Receipt showing the items bought | Items used up delivering your service go to line 22 |
| Postage | 18 | 5050 Office Supplies (closest) | Postage receipt or carrier invoice | Shipping supplies for delivering products go to line 22 |
| Equipment under the de minimis limit | 27b (via line 48) | 5050 Office Supplies (closest) | Invoice showing the cost per item | The $2,500 per item or invoice safe harbor ($5,000 with an applicable financial statement) is an election made on the return, deducted only as other expenses |
| Depreciation | 13 | 5140 Depreciation Expense | Purchase invoice, in-service date, and asset register | Section 179 is limited to taxable income from the business |
| Office or shop rent | 20b | 5070 Rent / Lease | Lease and proof of each payment | Rented vehicles and equipment go to line 20a; home rent is not here |
| Repairs | 21 | No Service account | Repair invoice describing the work | Betterments, restorations and changes to a new use are capitalized, not expensed as repairs |
| Business licenses | 23 | 6010 Taxes & Licenses | License or permit and payment receipt | Federal income tax and self-employment tax are not deductible here |
| Payroll taxes (employer share) | 23 | 5110 Payroll Taxes | Payroll reports and tax deposit records | Taxes withheld from employee pay are part of wages, not a second expense |
| Employee wages | 26 | 5100 Wages & Salaries | Payroll register and Forms W-2 | Owner draws are not wages for a sole proprietor |
| Employee retirement contributions | 19 | 5120 Employee Benefits | Plan statements and payroll records | Your own SEP-IRA or solo 401(k) contribution goes on Schedule 1, not line 19 |
| Lodging on business trips | 24a | 5090 Travel & Meals | Hotel folio and the trip’s business purpose | A receipt is required for lodging whatever the amount |
| Airfare | 24a | 5090 Travel & Meals | Ticket receipt and the trip’s business purpose | Personal side trips are not business costs; a family member’s ticket qualifies only for an employee traveling for a bona fide business purpose |
| Business meals | 24b | 5090 Travel & Meals | Receipt with who attended and the business purpose | Generally 50% is deductible; entertainment is excluded |
| Utilities | 25 | No Service account | Monthly utility bills | Utilities at your home go through the home office deduction on line 30 |
| Inventory and cost of goods sold | Part III line 42, carried to line 4 | No Service account (E-Commerce template: 5000) | Inventory counts and supplier invoices | Unsold inventory at year end (line 41) is not deducted yet |
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How to Handle Ambiguous Expenses
Software subscriptions, home office costs, and mixed-use items straddle categories:
Software Subscriptions
- Marketing tools (Mailchimp, Hootsuite, SEMrush) go under advertising, a common bookkeeping convention
- Business-management subscriptions (QuickBooks, Slack, Zoom) go under other expenses (line 27b through line 48). The Schedule C instructions cover technology and software tools that are ordinary and necessary, such as subscription services paid to manage your business
- Software bought outright generally has to be capitalized and depreciated, or expensed under Section 179. A design program you purchase instead of rent is an example. It is not deducted as a subscription
Home Office Costs
Home office costs cover the space you use exclusively and regularly for business. Do not scatter them across multiple categories. Use the home office deduction: either the simplified method ($5/sq ft, up to 300 sq ft) or the actual expense method.
Mixed-Use Expenses
Calculate the business-use percentage of mixed-use items (cell phone, vehicle, internet) and deduct only that portion.
When Two Categories Could Work
Choose the category that most accurately describes the primary purpose of the expense. Follow the nature of the expense and its tax treatment. When two categories fit, pick one, apply it consistently and keep a note of your reasoning.
Four steps cover every tie.
Setting Up Your Expense Categories: Practical Steps
Start With the IRS Categories
Use the 20 Schedule C categories in this guide as your top-level structure. Your books then match the form.
Add Sub-Categories for Better Reporting
Within each IRS category, create sub-categories for your business. For example:
Advertising
- Online ads (Google, Meta, LinkedIn)
- Print marketing
- Website costs
- Networking and events
Travel
- Airfare
- Lodging
- Ground transportation
- Baggage and tips
This gives you detailed reporting for business decisions while keeping your tax filing simple.
Use Consistent Rules
Write down your categorization rules. For example: “All business-management subscriptions go to other expenses. Marketing subscriptions go to advertising, and software bought outright follows the capitalization rule.” This prevents the same expense from landing in different categories month to month.
Automate Where You Can
Manual categorization is prone to errors. Many bookkeeping tools suggest a category for each bank-feed transaction and learn your patterns over time. Check each suggestion against the correct IRS category and review anything ambiguous.
Common Categorization Mistakes to Avoid
Dumping everything into “other expenses.” A bloated other expenses line is harder to explain.
Mixing personal and business expenses. Keep business and personal spending in separate accounts. One personal dinner in your business meals category is hard to defend if the IRS asks.
Forgetting to split mixed-use expenses. Your cell phone bill is not 100% deductible unless you have a dedicated business line. Estimate your business-use percentage and deduct only that amount.
The diagram applies that rule to a phone used 60% for business.
Inconsistent categorization. A Dropbox subscription filed under software subscriptions in January stays there in June.
Not keeping receipts. The IRS generally requires documentary evidence for travel, gift, transportation and meal expenses of $75 or more. It also requires evidence for all lodging, whatever the amount (IRS Publication 463). Keep records for your other business expenses too. Missing records can cost you the deduction.
Expense Tracking Tools and Approaches
You have two options for tracking and categorizing expenses:
Spreadsheets. Free and flexible, but manual. As a rule of thumb, works for businesses with fewer than 20 transactions per month. The free expense tracking template gives you a ready-made log.
Accounting software with bank feeds. QuickBooks, Xero, and FreshBooks connect to your bank and suggest categories. Review ambiguous transactions yourself instead of leaving them miscategorized.
Putting It All Together
Here is the action plan:
- Set up your categories using the 20 Schedule C categories in this guide as your foundation. Add sub-categories for your specific needs.
- Write your categorization rules: a short document that says “this type of expense goes here.”
- Categorize weekly at minimum. Do not let transactions pile up for months.
- Review monthly to catch miscategorized items before they become entrenched.
- Reconcile against your bank statement every month to make sure nothing was missed.
At tax time, cross-reference your categories against available deductions with our small business tax deductions guide.
Frequently Asked Questions
What are the main expense categories for small businesses?
This guide covers 20 main expense categories on Schedule C: advertising, car and truck expenses, commissions and fees, contract labor, depreciation, employee benefit programs, insurance, interest, legal and professional services, office expenses, pension/profit-sharing plans, rent or lease, repairs and maintenance, supplies, taxes and licenses, travel, meals, utilities, wages, and other expenses.
Why does expense categorization matter for taxes?
Proper categorization ensures you claim every eligible deduction, keeps records ready if the IRS asks, and gives you clear visibility into where your money goes. For example, lumping meals into office expenses puts a 50% expense on a line with no such limit.
How do I categorize an expense that fits multiple categories?
Choose the category that best describes the primary purpose of the expense. For example, a client business lunch could be meals or advertising. The IRS has specific rules for meals (generally 50% deductible), so the lunch belongs in meals. Follow the nature of the expense and its tax treatment. When two categories still fit, pick one, apply it consistently and keep a note of why.
What is the difference between supplies and office expenses?
Office expenses are recurring, low-cost items you use up quickly, such as printer ink, paper, pens, and sticky notes. Supplies are materials consumed in running your business, like shipping supplies or cleaning chemicals. Materials that go into products you sell belong in cost of goods sold instead. The IRS doesn't draw a hard line. Consistency matters more than perfection.
Can I create my own expense categories beyond the IRS list?
Yes. The IRS Schedule C includes an 'Other expenses' line where you can list any legitimate business expense that doesn't fit the standard categories. Many businesses also use sub-categories within the main IRS categories to get more granular reporting. For example, you can split 'advertising' into 'online ads' and 'print ads.'
How often should I categorize my business expenses?
Weekly works for many small businesses. As a rule of thumb, categorize daily when you process more than 10 transactions per day. Weekly prevents the backlog that leads to mistakes. Most bookkeeping software suggests categories from your bank feed. Review the suggestions instead of accepting them blindly.