Outright has a number of default categories available to help you organize your income and expenses.  Every category available from the dropdown menu correlates to a particular section on the Schedule C.  But sometimes you just want more details about how and where you're making and spending money -- this is when you might want to add a custom category.   When you add a custom categories, as long as you associate it with a tax line, it will show up on your "Reports" and charts. 

If you'd like to add an Income category, go to "Income", and if you'd like to add an expense category, go to "Expenses".  Then click on "Business Categories" from the brief case drop down from the upper right hand portion of the drop down.

From here you'll be able to add a new Income or Expense category: 

Finally, you can tell Outright to assign this category to a specific line on the Schedule C, if desired.  Just fill in the category under the expandable "Advanced" section:

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Related articles

http://help.outright.com/entries/439497-my-category-isn-t-right-on-my-schedule-c-how-do-i-change-this