Tracking categories in Xero 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.