Categorizing business expenses is an important part of keeping track of the money that goes into and out of a business. Business owners can more easily create accurate reports and financial statements by clearly organizing their expenses into logical categories. This means grouping like items together so that all similar costs are grouped into one category, such as “Office Supplies” or “Marketing Expenses.” Items may be further grouped into subcategories to provide more detail, such as “Print Materials” or “Online Advertising” for Marketing expenses. By properly categorizing business expenses, owners have better insight into exactly where their hard-earned money is going.