If You Can't Answer 'Where Did My Money Go?' Your Categories Are Wrong

You made $10K last month.

But your bank account only went up $2K.

Where did the other $8K go?

If you can't answer that question in 30 seconds, your QuickBooks categories are a mess.

Here's what's usually broken:

Problem 1: Everything is "Business Expense"

You need specific categories: Marketing, Software, Contractors, Supplies. Generic categories give you no insights.

Problem 2: Personal expenses mixed with business

This kills your ability to see actual business cash flow. Use separate accounts or mark personal spending as "Owner's Draw."

Problem 3: Transfers categorized as expenses

Moving money from checking to savings isn't an expense. This inflates your expense totals and confuses your reports.

The fix:

Run your Profit & Loss report in QuickBooks. Look at your expense categories. Do they tell you a clear story of where money is going?

If not, it's time to clean them up.

Clean categories = cash flow clarity.

Need help setting this up? Reply "CATEGORIES," and I'll send you my Chart of Accounts template.

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