1
the eight
contractor (1099 labor), supplies (materials, parts), rent, utilities, subscriptions (software, services), professional fees (cpa, attorney), owner draw (you taking money out), other (when none of the above fits).
2
pick the closest match — don't overthink it
if a payment could plausibly be "supplies" or "other," pick supplies. consistency over months matters more than perfect classification on any one entry.
3
your cpa adjusts at year-end if needed
categories map to schedule-c lines (or 1120/1120s for corps). your cpa might re-bucket a few entries at tax-time — that's normal. don't agonize line-by-line.
tip
owner-draw is the trickiest one. you're paying yourself out of the business — that's not an expense, it's an equity movement. pick "owner draw" so it lands correctly on your books.

was this article helpful?

we respond to every message within 24 hours.

pick the right category — bluejay's 8 expense buckets

more in bluejay