Great question.

Categories are a key element in how Renting Well works. How you categorize an expense or a revenue item will determine how you can ultimately assess and analyze the financial information you’re tracking in your instance of the app.

As an example – categorizing the different kinds of expenses you have in a property is helpful in determining increases or reductions year over year or even month over month, with those expenses. Categorizing items also produces more accurate reports at any given time, helps you identify and review specific items related to their category, and overall creates a more resourceful environment to be working out of.

It’s the same as identifying line items in a ledger. Specificity is key.