HoneyBook Balance automatically categorizes business expenses every time you use your HoneyBook Balance Visa® debit card—helping you stay organized, understand where your money goes, and prepare for tax season with less effort. Each transaction is assigned a tax-ready category based on common IRS business expense classifications, so you can confidently track spending and identify potential deductions.
This article explains how automatic expense categorization works, where to view and edit categories, and what each category includes.
How automatic expense categorization works
When you pay for something using your HoneyBook Balance Visa® debit card, HoneyBook Balance automatically assigns 2 types of categories to the transaction:
Tax category: Used to determine the appropriate tax treatment of the expense, for example, deductible vs. non-deductible
Category: A spending classification that helps you track and analyze where your money goes, for example, advertising, travel, or office supplies
Because categorization is automatic, no setup is required.
View or update an expense category
From the navigation menu, select Finance > Balance
Find the expense in the “Transactions” table
Select the transaction to view or update its category
📣 Note
If a transaction is still pending, you won’t be able to assign or change its tax category until it clears.
Business expense categories in HoneyBook Balance
Category | What it includes | Common examples |
Advertising and marketing | Costs to promote your business | Website hosting, social ads, email marketing, branded swag |
Bank and transaction fees | Financial and processing fees | Monthly bank fees, Stripe or PayPal fees, Etsy merchant fees |
Charitable contributions | Donations to qualifying organizations | Nonprofits (C corporation deductible, others may itemize personally) |
Client gifts | Business gifts to clients or employees | Holiday gifts (up to $25 per person per year) |
Commissions and fees | Sales and referral payouts | Affiliate payments, sales commissions |
Continuing education and training | Skill-building and professional development | Courses, certifications, conferences |
Contract labor | Payments to non-employees | Freelancers, contractors, outsourced services |
Gas and fuel | Vehicle-related business costs | Fuel, insurance, maintenance (or mileage rate) |
Home office expenses | Business use of your home | Rent portion, utilities, depreciation |
Insurance | Business insurance premiums | Liability, professional indemnity, equipment |
Interest | Interest on business borrowing | Business loans, credit cards, lines of credit |
Legal and professional services | Advisory and compliance services | Lawyers, accountants, consultants |
Licenses | Required business registrations | Business licenses, professional certifications |
Meals with clients | Business meals and entertainment | Client lunches (generally 50% deductible) |
Office expenses | General office costs | Miscellaneous office charges |
Office supplies | Day-to-day office items | Paper, pens, software subscriptions |
Payroll taxes | Employer-paid payroll taxes | Social Security, Medicare, Federal Unemployment Tax Act (FUTA) |
Payroll wages | Employee compensation | Salaries, bonuses, benefits |
Personal | Non-business transactions | Personal expenses paid from business account |
Rent | Business rentals or leases | Office space, equipment rentals |
Shipping and postage | Delivery and mailing costs | Postage, shipping labels |
Supplies | Job-specific materials | Photography or event supplies |
Tolls and parking | Vehicle-related fees | Parking meters, toll roads |
Travel airfare | Transportation for business travel | Flights, trains, rideshare |
Travel lodging | Overnight business accommodations | Hotels, short-term stays |
Travel meals | Meals during business travel | Travel meals (generally 50% deductible) |
Utilities | Essential services | Electricity, phone, internet (home office portion only) |
Why this matters for tax season
Accurate expense categorization helps you:
Identify tax-deductible business expenses
Prepare cleaner financial reports
Reduce manual bookkeeping
Share organized records with your accountant
📚 Tip
You can always manually update a category if an expense was misclassified—HoneyBook Balance is designed to be flexible as your business grows.
Still have questions? Feel free to send us a message by clicking the Question Mark icon on any HoneyBook page. Our team is always happy to help!
HoneyBook is a software company, not a bank. Banking services are provided by Lincoln Savings Bank, Member FDIC. HoneyBook Visa Debit cards are issued by Lincoln Savings Bank, Member FDIC. HoneyBook is not FDIC insured. FDIC insurance only covers the failure of an insured bank.