Tracking categories in Xero can be used for a number of different options
Tracking categories can be used for a number of different options, keeping a track of the work you do for a certain job or seeing how much profit you make per job.
For example, you can set up tracking per region. This can be done by adding tracking category options through the settings in Xero. Once done, they will appear in most instances when you are working in Xero, for example, when creating invoices/quotes, raising purchase invoices/bills and even when reconciling the bank.
From adding tracking category options throughout Xero, you can produce really useful reports. The below shows the performance of each region in the profit and loss. It details each individual regions sales figures, line by line expenses and net profit per region. The reports can be built how you want so if you needed to drill down into more detail per region, it is possible. This does not apply just to regions, the tracking options could be jobs for example a kitchen fitting company can use customers as the tracker.
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