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Expense Categorisation System

Create a clear system to categorise expenses for better tracking and reporting.

Operations - Finance - Expense Categorisation System

Who it's for

Finance Leads, Founders, Admin Staff, Operators, Analysts

Get Ready

Prepare the Required Inputs listed in the Workflow Prompt. Use as much detail as necessary.

How to use this prompt

1. Copy the Workflow Prompt.
2. Paste it into your AI tool.
3. Replace the "Required Inputs"
4. Run the prompt.

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Workflow Prompt

				
					You are creating an expense categorisation system.

### Required Input
- Business Type
- Expense Examples
- Reporting Needs

### Input Validation
Review inputs.
If unclear, ask clarification.
Pause until categories can be defined.

### Instructions
Design categories.

Ensure:
- Logical grouping
- Easy tracking

### Output
Provide:
1. Category structure
2. Definitions
3. Example mapping
4. Usage rules
5. Recommendations

Optional advanced instructions

				
					Add reporting alignment.

Example output

Expense Categorization System

Business Type: Marketing & AI Consultancy (Singapore-based)

Reporting Needs: Tax compliance (IRAS), project-based profitability, and overhead monitoring.

1. Category Structure

The system is organized into four top-level “buckets” to separate core delivery costs from the cost of staying in business.

01: Cost of Goods Sold (COGS) / Project Delivery
02: Growth & Acquisition
03: Operations & Overhead
04: Capital Expenditure (CapEx)

2. Definitions

COGS: Direct costs required to fulfill client work. If you don’t have a client, these costs should ideally disappear.
Growth: Money spent to find, win, and retain customers.
Operations: Fixed costs required to keep the business legal and functional regardless of sales volume.
CapEx: High-value assets with a lifespan of more than one year, typically subject to depreciation.

3. Example Mapping

- Meta Ad Spend

Expense Item	Primary Category	Sub-Category
API Usage (OpenAI/Anthropic)	01: COGS	Tech & Tooling (Direct)
Freelance Copywriter	01: COGS	Contractor Labor
LinkedIn Sales Navigator	02: Growth	Sales Tools
02: Growth	Advertising
NTU Workshop Transport/Grab	03: Operations	Travel & Local Transport
High-End MacBook Pro	04: CapEx	Hardware/Equipment

4. Usage Rules

The “Client Link” Rule: Any expense that can be billed back to a specific client or is essential for a specific project must be tagged with a Project ID and categorized under COGS.
Threshold for CapEx: Any single item purchase over $1,000 should be categorized as CapEx for tax depreciation purposes (following Singapore’s capital allowance rules).
Receipt Accuracy: All Grab/Transport receipts must include a “Business Purpose” note (e.g., “Meeting at NTU”) to ensure deductibility.

5. Recommendations

Digital Tools Audit: Review the “Tech & Tooling” sub-category monthly. AI tool costs can spiral quickly due to seat-based or token-based pricing.
Separate Software Folders: Distinguish between “Client-facing Software” (COGS) and “Internal Administrative Software” (Operations) to see your true service margin.
Automated Scanning: Use a tool like Hubdoc or Dext to automatically push digital receipts into these specific categories to reduce manual entry errors at year-end.

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When to reuse this workflow

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