Overview
Every expense and revenue item in ClarityNOW is assigned a P&L category that determines where it appears on your Profit & Loss report. If an item is miscategorized, your P&L won't accurately reflect your business finances. This guide explains how to change categories and when you should.
How to Change a Category
- Log in to your ClarityNOW portal
- Click Portal Dashboard
- Navigate to Financials in the left sidebar
- Find the expense or revenue item you want to modify
- Click the blue Actions button
- Click Edit
- Update the Category field (or any other fields as needed)
- Click Update to save your changes
Make sure to click Update when finished — navigating away without saving will discard your changes.
Available Expense Categories
| Category | What Belongs Here |
|---|---|
| Compensation | Team salaries, bonuses, contractor payments, VA costs |
| Lead Generation | Zillow, Realtor.com, Facebook Ads, direct mail, marketing costs |
| Occupancy | Office rent, utilities, office maintenance, co-working space fees |
| Education & Coaching | Coaching programs, training, certifications, conferences |
| Supplies/Office Expenses | Office supplies, printing, postage, signage, lockboxes |
| Communication & Technology | Phone plans, internet, CRM (FUB, etc.), software subscriptions |
| Automobile | Car payments, gas, mileage reimbursement, auto insurance |
| Equipment/Furnishings | Computers, cameras, furniture, office equipment |
| Insurance | Business insurance, E&O policies |
Available Revenue Categories
| Category | What Belongs Here |
|---|---|
| Listing Income | Commissions from seller-side deals |
| Buyer Income | Commissions from buyer-side deals |
| Transaction Fee | Per-deal fees collected |
| Vendor Income | Revenue from vendor partnerships |
| Profit Share | Brokerage profit share |
| Bonus | Performance bonuses |
| Returns | Refunds |
| Other | Miscellaneous income |
When to Recategorize
Common scenarios where you should change a category:
- QuickBooks sync miscategorization — Items synced from QuickBooks may not map perfectly to ClarityNOW's categories
- Bulk data entry corrections — After importing or entering many items quickly, review for accuracy
- Business restructuring — If your expense structure changes (e.g., a marketing cost was logged under Communication)
How Categories Roll Up to Your P&L
Your Profit & Loss Report organizes all financial data using this structure:
INCOME
├── Listing Income
├── Buyer Income
├── Transaction Fees
└── Other Revenue
= Total Gross Income
COST OF SALE
├── Agent Commissions
├── Broker Fees
├── Franchise Fees
├── Referral Fees
└── Additional COS
= Total COS
GROSS PROFIT = Gross Income − Total COS
EXPENSES (by category)
├── Compensation
├── Lead Generation
├── Occupancy
├── Education & Coaching
├── Supplies/Office Expenses
├── Communication & Technology
├── Automobile
├── Equipment/Furnishings
└── Insurance
= Total Expenses
NET PROFIT = Gross Profit − Total Expenses
Changing an item's category moves it to the correct line on this report, which can affect your Gross Profit and Net Profit calculations.
Related Articles
- How to Add an Expense — Add new expense or revenue entries
- Profit & Loss Report — View your complete financial picture
- Creating a Recurring Expense — Set up auto-repeating expenses