# Put bills, expenses and invoices under tax categories

> Let BillingMart suggest the tax category of each bill, expense and invoice, confirm it, and read totals by category at tax time.

Source: https://support.billingmart.com/time-and-expenses/tax-categories
Updated: 2026-10-19 · Applies to: Web · Section: Time, mileage & expenses

A tax category is the line of your tax return a record belongs on: advertising, car and truck expenses, insurance, services income and so on. BillingMart uses the lines of IRS Schedule C, for a US sole proprietor or single-member LLC. Every bill and expense is put under an expense category, and every invoice you issue under an income category, so the answer is ready at tax time.

BillingMart's suggestions are a suggestion, not tax advice. Check your categories with your accountant.

## Where to find it

Open **Reports** and choose the **Tax categories** tab. Pick a period and choose **Run report**. You see two tables for each currency: **Money out** by expense category and **Money in** by income category, with a row for what is **Not categorised yet**.

Money in is what you invoiced, without the sales tax you collected. Drafts and void records are left out. If you are limited to some businesses, you see only theirs.

## Get a suggestion

Under the report, **Not categorised yet** lists the records of the period that have no category. Choose **Suggest for these**:

- If you set a default category for the vendor or customer, that is suggested first.
- If you already put an earlier record from the same payee under a category, that category is suggested.
- For an invoice, if every line is charged by time or distance, it is suggested as services; if every line is charged per unit, as sales of goods.
- Otherwise the record is read by AI and one category is proposed with a short reason. This uses AI credits, like other AI features. The first three cost nothing.

If the workspace has no AI credits left, the records that need AI are skipped and the others still get a suggestion.

## Confirm

A suggestion is only a draft. Nothing changes on the record until you choose **Accept**, or pick a different category from the list. You can change a category at any time. Viewers can read the report but cannot change categories.

## When the Agent or a connected assistant suggests

An assistant can suggest categories and ask you to confirm them. Its request appears in your approvals like any other request, and you approve it. It runs without you only if the workspace owner set a rule for that kind of request.