Keeping track of your expenses will help you stay on top of your budget. Manage daily expenses by creating account heads. Expenses can be categorized as utilities, general, and travel expenses.
In addition, each category can also be subcategorized based on your preference.
Go to Setup then Accounts Setup and then Expense Accounts
Enter the Expense Account Category Name such as Financial Expenses, Operational Expenses, Non Operational Expenses etc. And select the Tally Synonym for that category.
So basically the account category you set, should be similar to the category that are in tally accounting. If you provide a tally synonym to your expense account category then in future if you enable tally in your account then your system data can be transferred to tally and account calculation can be done.
Now add the sub-category of the expense account category and Tally Synonym that defines of the expense account sub-categories.