How to categorize expenses or income in Finplan?

What is a category?

Expense categories are classifications used to organize the spending of an individual, company, or family.

They help you understand where your money is going, making financial control and budget planning easier.

How to categorize an expense or income?

These classifications are also used to label income or transfers. Practical examples:

• Food (Expense)
• Transportation (Expense)
• Salary (Income)
• Extra income (Income)

Usually, transfers are not classified with categories; however, depending on their nature, this may also be possible.

One of the main advantages of categories is the ability to improve planning, making it easier to create specific budgets for each need.

However, categories alone may not be enough.

What is a subcategory?

Subcategories help organize expenses even better, allowing for more detailed financial control.

Instead of just knowing how much you spent in a broad category, such as Food, you can understand exactly where the money went. Examples of Food subcategories may include:

• Groceries
• Delivery
• Restaurants

There is no strict rule for defining subcategories. They can be created according to each person’s preferences.

What are the benefits of subcategories?

• More clarity – You can see exactly which types of expenses are consuming your money.
• More accurate analysis – More detailed reports help identify where to cut costs.

Now you can benefit from financial management by using categories and subcategories.

How can you categorize an expense or income within Finplan? Let’s find out.

Categorizing in Finplan

In Finplan, you can add income and expenses and select categories during creation — or create them beforehand.

How to Create an Expense or Income Category

1. Tap the ➕ icon and choose “Add category.”

2. Select whether it’s an expense or income category.

3. Enter the category name.

4. Choose an icon and color.

How to Create a Subcategory

1. Tap the ➕ next to the category you want.

2. Type the subcategory name.

You can then finish creating categories and subcategories and select them when creating transactions.

Important: Income categories can only be chosen for income transactions, and expense categories only for expense transactions.

How to Assign a Category in a Transaction

Once you’ve created your categories and (optional) subcategories:

1. Choose to add a new income or expense.

2. During the transaction creation process, select the desired category and, optionally, a subcategory.

Subcategories are optional — but using them helps with financial clarity.

Conclusion about categorize expenses

Categorizing expenses and income in Finplan is essential for effective financial management. With well-defined categories and subcategories, you can clearly see where your money goes and plan your budget more effectively.

Personalizing your categories based on your real needs ensures your planning is adapted to you. Fortunately, adding and using these classifications in the platform is easy — and if you have any questions, Finplan’s team is ready to help.