Accounting Categories Expenses refer to the classifications of expenses that a business or organization may have. They help to provide structure and guidance around data related to the costs associated with running the business. This includes items such as wages, raw materials, inventory, office supplies, advertising, insurance, repairs & maintenance and capital expenditures. Knowing how much you spend in different categories helps you understand your business better and makes it easier for you to manage finances efficiently. To be able to effectively tackle any financial challenges, it is essential to keep up-to-date records and clearly track expenses by category.