Money Pro Expense Categories — IRS Schedule C Guide

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Money Pro uses IRS Schedule C expense categories — the same ones on your federal business tax return. Every categorized transaction feeds directly into your Schedule C report. You can add custom subcategories but cannot change the parent IRS categories. For the complete category and subcategory list as it appears in the picker, see Money Pro Categories and Chart of Accounts Quick Reference — the table below groups them by Schedule C line for tax purposes and isn't a 1:1 list of category-picker labels.

IRS Schedule C Categories in Money Pro

Category (Money Pro parent)	What to Include
Advertising	Online ads, print ads, promotional materials, marketing agency fees, business cards
Vehicle	Actual vehicle costs — gas, insurance, repairs — based on business-use percentage. Use this OR mileage, not both.
Commissions & Fees	Bank fees, sales commissions, referral/commission fees, memberships and subscriptions — NOT payments to independent contractors, see Contractors below
Contractors	Payments to 1099 subcontractors and freelancers for work on specific projects
Depletion	Natural resource businesses (oil, timber, mining) — rarely used by most small businesses
Depreciation	Cost recovery for long-term business assets (equipment, vehicles, computers)
Employee Benefits	Health insurance and other benefits paid for employees (not yourself)
Other → Business Insurance	Business liability insurance, professional liability (E&O), property insurance for business assets
Interest	Interest on loans used for business purposes
Professional Services	Attorney fees (Legal), accountant/CPA fees (Accounting / Tax), consultant fees (Other Professional Services) — three subcategories, not one combined category
Meals & Entertainment	Business meals with clients or for business purposes — tracked at 100%, 50% deductible at filing
Office Expenses	Office supplies, postage, printer ink, stamps, small tools and equipment
Employee Benefits → Pension & Retirement Plans / Profit Sharing	Retirement plan contributions for employees
Office Expenses → Rent / Other Equipment & Property → Rent or Lease Equipment or Property	Office space rent, equipment leases, storage unit rent for business use
Other Equipment & Property → Repairs & Maintenance	Business equipment repairs, office maintenance costs
Payroll → Salaries & Wages	Wages paid to W-2 employees (not yourself as an LLC owner — see Owner's Draw, Member Draw, Payroll, and Distributions before using any Payroll category)
Office Expenses → Software / SaaS	SaaS tools, software licenses, cloud services, business app subscriptions
Taxes & Licenses	Business licenses, state taxes, local taxes, business property taxes
Travel	Business travel — airfare, hotels, ground transportation (not commuting)
Utilities	Business phone, internet, utilities for your office or business location
Other Business Expense	Legitimate business expenses that don't fit another category

Special Categories

Owner's Draw (Not a Business Expense)

When you take money from your LLC for personal use, categorize it as Owner's Draw — this is NOT a business expense and should never appear in your Schedule C categories. See Owner's Draw, Member Draw, Payroll, and Distributions in Money Pro for the dedicated FAQ.

Personal

Transactions that are personal and should be excluded from all business reports. Use this for personal purchases that accidentally went through your business account.

Custom Subcategories and Chart of Accounts

Money Pro has fixed parent categories that map to IRS tax reporting and a broader accounting structure. You cannot rename, delete, or fully redesign those parent categories like you might in a full accounting platform. You can create custom subcategories under the existing parents so your reports use language that fits your business while still rolling up correctly for taxes. See Money Pro Categories and Chart of Accounts Quick Reference for a dedicated FAQ on what can and cannot be customized.

To add a subcategory:
1. Gear icon → Business Categories → + Add

2. Enter the subcategory name
3. Select the parent IRS category it belongs under
4. Save

Example: Add "YouTube Ads" and "Google Ads" as subcategories under Advertising. In reports, those subcategories still roll up into Advertising. If you need advanced chart-of-accounts changes for assets, liabilities, equity, loan payable, or depreciation, work with an accountant before entering journal-style adjustments in Money Pro. For those advanced topics, see Fixed Assets, Loans, Depreciation, and Journal Entries in Money Pro.

Important Tax Notes

Business meals: Always record the full amount. The 50% IRS limitation is applied at tax filing time — not in Money Pro.
Car and Truck Expenses vs. Mileage: You can only use one method per vehicle per tax year. Most small business owners find the standard mileage rate simpler. See your Tax Profile settings to toggle between methods.
Home office: There isn't a dedicated Schedule C home office category in Money Pro — use Utilities and Rent or Lease for the proportional business portion, and your accountant applies the home office deduction at filing.

Frequently Asked Questions

What if I can't find the right category for an expense?

Use Other Business Expense. Describe it clearly in the notes field. Your accountant can move it to the correct category when preparing your return. Don't guess at an incorrect category — Other Business Expense is always better than miscategorizing.

Can I create a new parent category?

No — parent categories are fixed to IRS Schedule C lines and cannot be added or modified. You can only add subcategories under existing parents.

Can I see or change the full chart of accounts in Money Pro?

Money Pro is designed around fixed tax-reporting categories plus customer-created subcategories. You can review available categories from the transaction category dropdown and Business Categories settings, but you cannot fully redesign the chart of accounts. See Money Pro Categories and Chart of Accounts Quick Reference for the full explanation. For advanced asset, liability, equity, loan, or depreciation entries, ask an accountant how the entry should be recorded before changing categories.

What's the difference between Office Expense and Software & Subscriptions?

Office Expense covers physical supplies and small one-time purchases. Software & Subscriptions covers recurring digital tools and licenses. When in doubt, either category is acceptable — your accountant knows how to handle either on Schedule C.

Still need help? If you still have questions our support team is happy to help!