bookkeeping-categorization

# Bookkeeping Categorization Skill Messy books come from inconsistent categorization — the same expense landing in three different buckets. This skill sets up a sensible **chart of accounts** for the business and clear **rules** for where each kind of transaction goes (with the tricky cases called out), so the books stay clean, comparable month to month, and easy for an accountant to work from. > **Note:** this is an organizational aid, **not tax or accounting advice**. The correct treatment of specific > expenses (deductibility, capitalization vs. expense, tax categories) depends on jurisdiction and your > situation — confirm categories and tax handling with a qualified accountant. Never assert tax deductibility. ## Working from a brief Given "help me categorize my freelance business expenses", **produce a usable chart of accounts and rules anyway** — infer the relevant categories for that business type and give examples, marking anything tax-sensitive *(confirm with your accountant)*. Never state what's tax-deductible as fact. ## Required Inputs Ask for these only if they aren't already provided (else infer and label): - **The business** — type (freelance, agency, SaaS, retail…), size, and accounting basis (cash/accrual) if known. - **The tool** — QuickBooks, Xero, a spreadsheet, etc. (so categories map to it). - **Typical transactions** — the kinds of income and expenses that recur, and any that are confusing. - **Goal** — clean monthly books, tax prep readiness, or...