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I work for a non-profit company in Cape Town, South Africa and we are reworking our budgets into cost centres for 2027 and even just a 3rd tracking category in Xero would be so helpful for this as already use our other tracking categories for donations and our properties.

It has now been almost a year since Xero's response on 22 October 2025, with no meaningful follow-up, no explanation of what is holding this up, and no indication that anything is actually progressing.
At this point, there seem to be only two possibilities: either Xero does not take customer feedback seriously, or a relatively basic enhancement has somehow defeated its programmers for nearly a year.
We are not asking Xero to rebuild its accounting engine. We are asking for additional tracking dimensions — functionality that proper ERP systems such as JD Edwards have supported for decades. If Xero's legacy code really makes this so difficult, perhaps someone should feed the relevant C#/ASP.NET code into an AI coding assistant and see whether it can make more progress than Xero has managed in the past year.
As a Xero shareholder as well as a customer, that is what concerns me most. If Xero genuinely wants to move upmarket and compete with proper ERP platforms, it cannot keep treating basic dimensional reporting as an advanced feature request.
Either the product architecture cannot keep up, or the product team does not care enough to fix it. Neither is particularly reassuring for customers or shareholders.

We have entities in the whole of AMEA and APAC region all using Xero. We need additional tracking categories added. We might need to explore other accounting systems. This is clearly a big need with your clients. Can we get an update on where this is sitting at the moment? thank you

Xero Support - can someone please respond with an update on where this idea sits in your production list?
It is clear the need for additional tracking categories is critical to many of your customers across many different industries. As reported numerous times from our business, as at 31 Dec this year, the lack of tracking categories will result in our business having to seek a different accounting solution to Xero.
Compared to many of your other updates, this doesn't seem to be a major ask as the ground work has already been completed with the functionality already created and available.
Please advise update.
Thank you.

This is now the most popular non-rejected idea across all categories.

Reposting my idea that was attached to this one for visibility:

Transaction Tagging System.

Instead of the simplistic Tracking Categories which only allows a two categories to be applied to a transaction, Xero should have a tagging system, where custom tags can be applied to any transaction in any quantity.

This system could replace Tracking Categories by using a format like "Location:HQ", "Location:Branch", and have custom tags like
"SDE" (Shareholder Discretionary Earnings)
"PST:Reimburse" (for taxes that can be refunded from the government at the end of the year)
"Review Needed"
"Approval Needed"
"Accountant Review"
"Needs Receipt"
"Re-categorize"
"Submit to X Grant Program"
"Expense to Client Y"

Bonus points ff the tags can be applied to any object in Xero - Invoices, Transactions, Customers, Files, etc.

This system could also be used to kick-off automation in other systems through the API connection.

Apply a tag of "print in HQ", and a receipt for the transaction gets printed in an office.

"Invoice Client", and the transaction is added as an expense to the next invoice that gets sent to the client.

"Needs Approval" and an email fires to the approver with a link to the transaction

And should be able to assign ALL tracking categories to payroll entries.

I agree that more tracking categories are needed for a variety of different businesses and industries. Would love to see more than 2 categories.

As a provider focused on nonprofits, we really need at least one more category to be able to properly track grant funds. Quickbooks dominates the nonprofit market in the US and their flexible class tracking system is why many nonprofits prefer it. We like Xero's focus on constraints, but we have been requesting this since 2014 and it seems odd that this relatively simple feature improvement that would help Xero compete against Quickbooks hasn't been prioritized.

100% a need for us as a business.

We are using Xero from every region within our business with their own Xero entity set up.
We need to track sales better from a Sales desk perspective, and have 2 categories is limiting our reporting. Please can we add more!!

Can we get an update from the Xero team please if this has made it into the PD roadmap yet?

100% a need.

Completely agree. As a charity we have the need for analysing our donations in lots of different ways and by increasing the number of categories, this would save a lot of manual/time consuming workings.

This is now the 2nd most popular non-rejected idea across all categories.

Reposting my idea that was attached to this one for visibility:

Transaction Tagging System.

Instead of the simplistic Tracking Categories which only allows a two categories to be applied to a transaction, Xero should have a tagging system, where custom tags can be applied to any transaction in any quantity.

This system could replace Tracking Categories by using a format like "Location:HQ", "Location:Branch", and have custom tags like
"SDE" (Shareholder Discretionary Earnings)
"PST:Reimburse" (for taxes that can be refunded from the government at the end of the year)
"Review Needed"
"Approval Needed"
"Accountant Review"
"Needs Receipt"
"Re-categorize"
"Submit to X Grant Program"
"Expense to Client Y"

Bonus points ff the tags can be applied to any object in Xero - Invoices, Transactions, Customers, Files, etc.

This system could also be used to kick-off automation in other systems through the API connection.

Apply a tag of "print in HQ", and a receipt for the transaction gets printed in an office.

"Invoice Client", and the transaction is added as an expense to the next invoice that gets sent to the client.

"Needs Approval" and an email fires to the approver with a link to the transaction

Agree would be great to get this in so we can use in FY27 and not have to use manual excel spreadsheets.

Please allow to add more then 2 tracking categories, so that it becomes easy in the presentation and clarification while generating the reports.

This is now the 3rd most popular non-rejected idea in all categories.

Reposting my idea that was attached to this one for visibility:

Transaction Tagging System.

Instead of the simplistic Tracking Categories which only allows a two categories to be applied to a transaction, Xero should have a tagging system, where custom tags can be applied to any transaction in any quantity.

This system could replace Tracking Categories by using a format like "Location:HQ", "Location:Branch", and have custom tags like
"SDE" (Shareholder Discretionary Earnings)
"PST:Reimburse" (for taxes that can be refunded from the government at the end of the year)
"Review Needed"
"Approval Needed"
"Accountant Review"
"Needs Receipt"
"Re-categorize"
"Submit to X Grant Program"
"Expense to Client Y"

Bonus points ff the tags can be applied to any object in Xero - Invoices, Transactions, Customers, Files, etc.

This system could also be used to kick-off automation in other systems through the API connection.

Apply a tag of "print in HQ", and a receipt for the transaction gets printed in an office.

"Invoice Client", and the transaction is added as an expense to the next invoice that gets sent to the client.

"Needs Approval" and an email fires to the approver with a link to the transaction

More tracking categories needed for sure! It is very frustrating to work with only 2 at a time. At least allow all 4 to be active at any given time, for starters. But this needs definitely to be done.

Yes, more tracking categories are needed.

This is now the 4th most popular non-rejected idea in all categories.

Reposting my idea that was attached to this one for visibility:

Transaction Tagging System.

Instead of the simplistic Tracking Categories which only allows a two categories to be applied to a transaction, Xero should have a tagging system, where custom tags can be applied to any transaction in any quantity.

This system could replace Tracking Categories by using a format like "Location:HQ", "Location:Branch", and have custom tags like
"SDE" (Shareholder Discretionary Earnings)
"PST:Reimburse" (for taxes that can be refunded from the government at the end of the year)
"Review Needed"
"Approval Needed"
"Accountant Review"
"Needs Receipt"
"Re-categorize"
"Submit to X Grant Program"
"Expense to Client Y"

Bonus points ff the tags can be applied to any object in Xero - Invoices, Transactions, Customers, Files, etc.

This system could also be used to kick-off automation in other systems through the API connection.

Apply a tag of "print in HQ", and a receipt for the transaction gets printed in an office.

"Invoice Client", and the transaction is added as an expense to the next invoice that gets sent to the client.

"Needs Approval" and an email fires to the approver with a link to the transaction

We are currently making extensive use of Xero’s tracking categories to manage and analyze our business activities. However, the existing limit on the number of tracking categories is proving restrictive for our operations.

To better align with our reporting needs and ensure more accurate financial insights, we kindly request that the cap on tracking categories be increased from the current limit to unlimited. This adjustment would allow us to fully leverage Xero’s functionality without constraints, ensuring that our reporting remains flexible and comprehensive as our business grows.

We believe this enhancement would not only benefit our organization but also add significant value for other Xero users who require more detailed tracking.