Yes, you need to manually categorise most invoices and bills you create with Tide.
The categories in the Tide app are HMRC-compliant and aim to make the filing of your tax returns easier and simpler. However, these must be selected carefully, and auto categorisation is available in specific cases only.
To make sure you choose the correct categories, you can use our handy guide.
While it's not mandatory to select a category when creating an invoice, you must do this for any bills you create. Categorising is recommended for both, to ensure accurate reporting, especially if you are using Tide Accounting.
Once you’ve created an invoice, you can no longer change its category.
For businesses on Accrual basis accounting:
If no category is assigned to an invoice and you’re using Tide Accounting, this invoice will be automatically counted towards your income.
See more about the difference between Accrual and Cash basis accounting here.
