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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/-/b/c/4/0/bc403b1864845000/9a77d9f8-6b6c-49e9-8b6f-72b7c8_1cgjnh9.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/-/f/3/c/3/f3c31f9887e35000/3bcf61f3-1d9f-43eb-9d60-41fdcd_12zr3b2.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/-/d/9/8/5/d985e00fb3df6000/04310cb7-ff7f-4c15-824f-d4543c_xda7tn.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!