Tracking Categories in Xero

‍Tracking categories in Xero allow you to break down your profit and loss by revenue stream, project, or location.

Without tracking, your P&L only shows overall income, expenses, and profit. With tracking enabled, you can see which areas of the business are performing well and which are not.

This extra visibility helps identify loss-making projects, improve decision-making, and focus on the most profitable parts of your business.