Bookkeeping Categorization Skill

Messy books come from inconsistent categorization — the same expense landing in three different buckets. This skill sets up a sensible chart of accounts for the business and clear rules for where each kind of transaction goes (with the tricky cases called out), so the books stay clean, comparable month to month, and easy for an accountant to work from.

Note: this is an organizational aid, not tax or accounting advice. The correct treatment of specific expenses (deductibility, capitalization vs. expense, tax categories) depends on jurisdiction and your situation — confirm categories and tax handling with a qualified accountant. Never assert tax deductibility.

Working from a brief

Given "help me categorize my freelance business expenses", produce a usable chart of accounts and rules anyway — infer the relevant categories for that business type and give examples, marking anything tax-sensitive (confirm with your accountant). Never state what's tax-deductible as fact.

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