Categories for small business expenses define how money is spent and saved. These categories help to track when and where funds are being allocated and determine where a business should make wise investments. Expenses can be broken into several major categories such as general operations, human resources, advertising, technology, maintenance, and capital expenditures. Keeping an organized record of these categories helps businesses better manage their finances by seeing exactly where the money is going. Additionally, properly categorizing expenses can also assist businesses in meeting compliance standards. To ensure that your small business is staying within its budget, it is essential to understand which categories are necessary and what type of expenses fit into each one.