Best practice: review categories once a month

Your business may change over time, so your categories should be reviewed occasionally.

What to check

Once a month, look at your sales reports and ask:

• Are the categories easy to understand?
• Are too many sales going into Other sales?
• Are there categories you never use?
• Are there important sales types missing?
• Are inventory products being confused with categories?

Real-world example

A shop originally creates only Groceries and Other Sales. Later, drinks become a large part of the business. The owner may add a Drinks category so reports become clearer.

Main benefit

Monthly category review keeps your reports useful as your business grows.