Income Categories

Classify income by source and type for better reporting and tax compliance.

Overview

Categorizing your income helps you:

Understand where your money comes from
Generate meaningful reports
Identify your most profitable services
Complete your tax return accurately

Default Income Categories

ProcessX includes pre-configured categories to cover most business income types:

Service-Based Income

Product-Based Income

Passive Income

Other Income

Choosing Categories

When recording income, select the category that best describes the source of that income:

Example Scenarios

Category Analytics

View your income breakdown by category:

Go to Income > Analytics

Select the time period

View the category breakdown chart

See percentages and totals per category

This helps you understand:

Which services are most profitable
Income diversification
Trends over time

SARS Tax Treatment

Different income types may have different tax treatments:

Category	Description	Examples
Professional Services	Fees for professional work	Consulting, legal, accounting
Freelance Work	Contract or gig work	Design, writing, development
Commission	Sales or referral commissions	Agent fees, affiliate income
Category	Description	Examples
Product Sales	Physical goods sold	Retail, wholesale, handmade
Digital Products	Digital goods sold	eBooks, courses, software
Category	Description	Examples
Rental Income	Property or equipment rental	Office space, equipment hire
Royalties	Licensing and usage fees	Patents, content licensing
Interest	Interest earned	Business savings, investments
Dividends	Share dividends	Investment returns
Category	Description	Examples
Grants	Business grants received	Government grants, awards
Other Income	Miscellaneous business income	Refunds, insurance payouts
Received	Category
Payment for web design project	Professional Services
Sale of office equipment	Other Income
Monthly rental from subletting	Rental Income
Referral fee from partner	Commission
Interest from business account	Interest
Category	Tax Treatment
Professional Services	Fully taxable as income
Product Sales	Fully taxable as income
Interest	Taxable with exemption (first R23,800 for under-65s)
Dividends	Subject to Dividends Tax (usually withheld)
Rental Income	Fully taxable as income
Capital Gains	Separate calculation (excluded from ProcessX income)

Using Categories for Reports

Income Statement

Categories appear in your profit & loss report, showing revenue breakdown.

Tax Computation

Categories help allocate income correctly for tax calculations.

Client Reports

Combine category and client data to see which clients pay for which services.

Best Practices

Be consistent: Use the same category for similar income

Don't over-categorize: Stick to standard categories

Use descriptions: Add details in the description field

Review quarterly: Ensure categories are being used correctly

Last updated: March 2025