Tracking categories and codes are a feature in Xero that let you tag and report on transactions in ways that go beyond your standard chart of accounts (GL codes).
While GL codes tell you what the transaction relates to (e.g., "Sports Fees" or "Stationery Sales"), tracking categories let you add another dimension – like which department, year level, or activity it relates to.
Different schools use tracking in different ways, depending on what their accountant recommends and what their Board needs to see. Some common approaches include:
By department:
By year level:
By activity type:
Your accountant may have set up your Xero chart of accounts to use:
Detailed GL codes only – Specific codes like "Year 8 Sports Fees" with no tracking
Simple GL codes + tracking categories – Broad codes like "Student Activity Fees" with tracking to show activity and department
A mix of both – GL codes for one purpose, tracking for another
Kindo supports whichever approach your school uses.
Kindo collects income from families – things like sports fees, camp payments, stationery, and donations. When you use tracking categories in Kindo, you're tagging that income so it flows into Xero with the right codes already applied.
Here's how it works:
Less manual work: Instead of manually applying tracking codes to every line in Xero after the invoice comes through, the codes are already there based on how you set up the payment item.
Consistency: Because codes are assigned when you create the payment item (not after the fact), the coding is consistent across all payments for that item.
Works with your existing setup: Kindo doesn't require you to change how your chart of accounts is structured. It works with whatever your accountant has recommended.