Easy Tech TutsHow to Create Categories in QuickBooks Online Step by Step Easily 2026
By Impran M N
Well-organized categories make the difference between reports that actually tell you something and a jumbled list of transactions. This guide covers how to create new categories in QuickBooks Online and keep them useful.
01Open the chart of accounts
Go to your chart of accounts, which is where categories for transactions are managed.
02Create a new category
Select the option to add a new account, choosing the appropriate account and detail type for the category.
03Name the category clearly
Give the category a name that will make sense in reports months from now, not just in the moment.
04Apply the category to transactions
Use the new category when categorizing bank feed transactions or entering new expenses and income.
Frequently asked questions
How many categories can I create?
QuickBooks Online allows a generous number of categories, though it's best to keep the list focused rather than overly granular.
Can I create subcategories?
Yes, you can nest categories under a parent category for more detailed organization.
What's the difference between a category and a class?
Categories organize transactions by type of income or expense, while classes track transactions across different segments like departments or locations.
Can I edit a category name later?
Yes, you can rename a category at any time, and it will update across historical transactions using it.
Watch the full walkthrough
The same steps, demonstrated on screen from start to finish.
