Account Categories

Keeping track of your expenses will help you stay on top of your budget. Manage daily expenses by creating account heads. Expense names can be categorized as utilities, general, and travel expenses. 

So whenever you see the transaction details, it will show you all the category-wise expenses.

In addition, each category can also be subcategorized based on your preference.  

Go to Setup then Accounts Setup and then Account Categories

Enter the Expense Account Category Name such as Financial Expenses, Operational Expenses, Non Operational Expenses etc. Select the Tally Synonym for that category.

So basically the account category you set should be similar to the category that is in tally accounting. If you provide a tally synonym to your account 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 account category and the Tally Synonym that defines the expense account sub-categories.