Business Expense Category is a formal way of classifying the costs associated with running your business. It’s an organized system of tracking and recording all your expenses, like rent, payroll, materials, and other overhead costs. Having this classification system makes it easier to track spending, monitor performance, and understand where your money is going. By being mindful of your various categories and their individual limits, you can optimize your budget and have more control over your cash flow. Knowing your business expense categories is essential for any successful business.