How do I categories transactions such as council tax and phone bills etc. so that only part of it is an expense. Which categories do I choose?

You can use the Split feature to divide a single transaction into multiple categories, ensuring only the business portion is recorded as an expense. This allows you to accurately report costs like phone bills or council tax that are shared between business and personal use.

Here's how:

1. Go to All apps, click Accounting and select Bank Transactions.
2. Click the transaction you want to split.
3. Select the Split and enter the amount.
4. Choose whether the split transaction is personal or business.
5. Select a category from the dropdown menu.
6. Once done click Split and post.

For the categories, I recommend consulting with your accountant for further guidance.

You can check out this article for more detailed information on expense categories: Understanding allowable and disallowable expenses.

If you have any other questions, feel free to let us know. We’re here to help.