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# Why and how to create expense categories?

In Fotostudio, you have the option to classify your expenses by categories.

# Why create expense categories?

The categorization of your expenses allows you to have a chart in [Accounting > Dashboard](https://www.fotostudio.io/app?show=finances) showing the distribution of your expenses by category. This allows you to quickly see what your biggest expenses are.

![Graph "Expenses by type"](https://storage.crisp.chat/users/helpdesk/website/-/2/d/4/2/2d42885141424200/67f65e9a-9298-4ffc-a2a9-4eb166_1wsydwn.png)

# How to create expense categories?

To create expense categories, go to [Accounting > Expenses](https://www.fotostudio.io/app/expenses) and then click on the `Category Management` button (label icon 🏷).

![Button "Category Management"](https://storage.crisp.chat/users/helpdesk/website/-/8/8/8/e/888e385878de0000/a38b1adb-1eaf-4004-a7ba-6e7850_1v74wx6.png)

You can use the `New Category` button to create your categories and subcategories.

![Adding an expense category](https://storage.crisp.chat/users/helpdesk/website/-/2/d/b/b/2dbb158c649a6400/beb78463-7710-40a6-906b-c9aea1_1cf4thk.png)

Once your categories are created, you can use them when creating or modifying your expenses.

||| Currently, deleting a category will result in the deletion of all associated expenses!