# How to Add Departments in Xero

> To add departments in Xero, navigate to Accounting, select Advanced, and open Tracking Categories. Click Add Tracking Category, enter a unique name, and provide category options. Add more items if needed, then review and save your changes to update your organization.

Canonical: https://livedemo.ai/tutorials/how-to-add-departments-in-xero/
Apps: Xero
Updated: 2026-10-05
Interactive demo: https://story-api.livedemo.ai/workspaces/62255d3d3304f17b8f5e2d03/stories/692a2d4e57f8f6cdddddd624/preview?step=1

## Steps

1. On Xero's main dashboard, head over to the top menu bar and click 'Accounting'.
2. Choose 'Advanced' from the list of options.
3. After that, find and tap 'Tracking Categories'.
4. Click 'Add Tracking Category' to proceed.
5. Come up with a unique department name, then type it into the 'Tracking Category Name' field.
6. Subsequently, provide several category options. Enter them into the provided input fields.
7. If you want to add more category options, simply tap 'Add Another Item'.
8. Once done, review your input and click 'Save'.
9. After completing these steps, the new department will be added to your Xero organization.