An Expense Category is an important part of business budgeting and bookkeeping. It allows small businesses to organize their expenses into different areas for tracking and forecasting purposes. A good expense category system will take into account the various types of charges a business incurs, as well as its size, scope, and financial goals. With a well-defined system, businesses can identify areas of excessive spending and make smarter decisions about where to allocate resources. By categorizing expenses carefully and accurately, businesses can get a clearer picture of their financial health – as well as areas they may need to address in order to be more successful.