> ## Documentation Index
> Fetch the complete documentation index at: https://docs.smartbills.io/llms.txt
> Use this file to discover all available pages before exploring further.

# Expense Categories

> Create and manage expense categories for your organization

## Overview

Expense categories are labels that classify each expense by its type (e.g., Travel, Meals, Office Supplies). Categories are essential for accurate financial reporting, budget tracking, and accounting integration. Smartbills comes with a set of default categories, and you can customize them to match your organization's chart of accounts.

To manage categories, navigate to **Settings > Categories** in the left sidebar.

<Note>
  Only users with the **Admin**, **Owner**, or **Accountant** role can manage categories.
</Note>

## Default Categories

Smartbills provides a set of commonly used categories out of the box, including:

* Travel
* Meals & Entertainment
* Office Supplies
* Transportation
* Software & Subscriptions
* Professional Services
* Utilities
* Miscellaneous

You can edit these defaults, disable ones you do not need, or add new custom categories.

## Create a Custom Category

<Steps>
  <Step title="Open Categories Settings">
    Navigate to **Settings > Categories**. The page displays all existing categories in a reorderable list.
  </Step>

  <Step title="Click Add Category">
    Click the **Add Category** button at the top of the list.
  </Step>

  <Step title="Enter Category Details">
    Fill in the category form:

    * **Name** (required), The display name of the category (e.g., "Client Entertainment")
    * **GL Account Code**: The general ledger account code for accounting integration (e.g., "6200")
    * **Description**: An optional description to help employees choose the right category
  </Step>

  <Step title="Save">
    Click **Save** to create the category. It will appear in the category list and be available for employees to select when submitting expenses.
  </Step>
</Steps>

## Edit a Category

Click any category in the list to open its detail panel. You can modify the name, GL account code, and description. Click **Save** to apply your changes.

<Note>
  Renaming a category updates it across all existing expenses that use it. Historical reports reflect the updated name.
</Note>

## Set GL Account Codes

GL (General Ledger) account codes link your Smartbills categories to your accounting software. When you export expenses, the GL codes are included so your accounting team or integration can map expenses to the correct accounts.

Enter the GL code in the category detail panel. The format depends on your accounting system (e.g., "5000", "6200-01").

## Enable and Disable Categories

To prevent employees from using a category without deleting it:

1. Click the category in the list
2. Toggle the **Enabled** switch to off
3. Click **Save**

Disabled categories are hidden from the category dropdown when submitting expenses but remain visible in historical data and reports.

## Reorder Categories

Drag and drop categories in the list to change their display order. The order you set here determines the sequence in which categories appear in the dropdown menus throughout Smartbills.

## What's Next?

<CardGroup cols={2}>
  <Card title="Departments" icon="building" href="/guides/web-app/settings/departments">
    Set up departments for expense allocation
  </Card>

  <Card title="Vendors" icon="store" href="/guides/web-app/vendors/overview">
    Assign default categories to vendors
  </Card>
</CardGroup>