Expense Categories
Learn how to effectively categorize and organize your renovation expenses for better budget management
In this guide:
Why Categorizing Expenses Matters
Properly categorizing your renovation expenses is essential for:
- Maintaining clear visibility into where your money is going
- Identifying areas where you're over or under budget
- Making informed decisions about where to cut back if needed
- Creating accurate reports for financial planning
- Simplifying tax preparation and documentation
Default Expense Categories
HomePro automatically sets up these standard categories for your renovation projects:
Materials
All physical items purchased for your renovation, including lumber, fixtures, appliances, hardware, etc.
Labor
Payments to contractors, specialists, and any other hired help for your project.
Tools & Equipment
Purchased or rented tools, safety equipment, and machinery needed for the work.
Permits & Fees
Building permits, inspection fees, architectural drawings, and other administrative costs.
Contingency
Emergency funds set aside for unexpected issues (recommended 10-20% of your budget).
Miscellaneous
Other expenses that don't fit neatly into the categories above.
Creating Custom Categories
You can create your own expense categories to better organize costs specific to your project:
- Go to your project's Budget section
- Click on "Categories" in the top navigation
- Select "Add Category" button
- Enter a name for your category
- Choose a color (optional)
- Add a description (optional but helpful)
- Click "Save"
Tip: Consider creating categories for each room or phase of your project if you want to track expenses by area rather than type.
Assigning Expenses to Categories
When entering a new expense, you'll need to assign it to a category:
- Click "Add Expense" on your project's Budget page
- Enter the expense details (amount, date, vendor, etc.)
- In the "Category" dropdown, select the appropriate category
- If needed, you can create a new category directly from this dropdown
- Complete the expense form and click "Save"
For existing expenses, you can change the category at any time:
- Find the expense in your list
- Click the "Edit" button (pencil icon)
- Change the category in the dropdown
- Click "Save" to update
Best Practices for Expense Categorization
Follow these tips for effective expense categorization:
- Be consistent in how you assign expenses to categories
- Don't create too many categories — 5-10 is usually sufficient for most projects
- Consider your reporting needs when setting up categories
- Use subcategories for more detailed tracking within a main category
- Include notes with expenses to provide additional context
- Review and adjust your categories as your project evolves
Note: For tax purposes, keep receipts for all expenses, regardless of category. Some renovation expenses may be tax-deductible depending on your situation.