Expense Coding Guide overview

The Expense Coding Guide in Afirmo helps you pick the right category for each transaction. Categories are grouped into:

• Direct costs - purchases of stock or materials directly sold (Purchases - domestic, Purchases - related party)
• Operating expenses - day-to-day running costs (Advertising and marketing, Accountancy fees, Bank fees, Rent, Repairs and maintenance, etc.)
• Private use expenses - mixed personal/business costs (Home office, Mobile phone, Internet, Vehicle) where the allowance percentage applies
• Capital purchases - assets over the threshold ($1,000) - moved to the asset register and depreciated
• Personal Expenses - kept out of business reports

If you are not sure which to pick, the AI suggests one and live chat can clarify any edge cases. The full guide is linked from the category dropdown in any bank transaction or expense.