The Chart Of Accounts Expense Categories is the official lingua franca of your business expenses. It’s a combination of numbers and letters that identifies each aspect of your financials—from assets and liabilities to income and expenses to equity and more! Categorizing these many aspects of the financial landscape allows you to keep track of the unique nature of each transaction and easily attribute it to specific categories. With this standard language, anyone involved in the financial tracking process can quickly understand what kind of expense a particular transaction is related to. By having a structured way of organizing expenses, businesses can make sure their financial picture is as clear and concise as possible.