How to Add Departments in Xero

Quick summary

In Xero, departments are created using Tracking Categories, which let you segment financial data by team, location, or cost centre. This guide walks you through every step to add a new department in Xero via the Advanced Accounting settings.

Steps

1. On Xero's main dashboard, go to the top menu bar and click Accounting.
2. Choose Advanced from the dropdown list of options.
3. Find and click Tracking Categories from the Advanced Accounting menu.
4. Click Add Tracking Category to begin creating a new department.
5. Enter a unique department name into the Tracking Category Name field.
6. Add several category options by entering them into the provided input fields.
7. To include more options, click Add Another Item for each additional entry.
8. Review your input and click Save to confirm the tracking category.
9. The new department will now appear in your Xero organisation.