This is part of our Reports, Users and Add-ons series (Chapter 7 of the Xero tutorial hub):

• Lesson 1: Key Reports Every Xero User Should Check Regularly
• Lesson 2: Using Tracking Categories in Xero for Job Level Reporting
• Lesson 3: Adding Users and Setting Permissions in Xero Safely
• Lesson 4: Connecting Job Management Apps to Xero via the App Store

If you want to know which jobs or locations are actually profitable, tracking categories give you that detail without needing a separate account for everything.

1. What tracking categories actually do

They let you tag a transaction with an extra label, like a job name or location, on top of its normal account code.

2. Setting up your categories

Under organisation settings, you can create up to two tracking categories, each with your own set of options, such as job names or locations.

3. Tagging as you go

Adding a tag takes a second when entering a transaction, and the payoff is being able to run a report on any one job or location later.

4. Reading tracked reports

Once tagged, you can run profit and loss reports filtered by tracking category, showing you which jobs are actually worth taking on again.

Xero’s YouTube channel has a walkthrough of tracking categories: watch the official Xero tutorial. Our tradie bookkeeping service can help set these up around how you actually quote and run jobs.