🎨 QuickBooks Online Tip for Creatives: How to Categorize Transactions

As a creative professional, managing finances can feel like the least creative part of your job—but it’s one of the most important.

If you're using QuickBooks Online (QBO), learning how to categorize your transactions correctly can help you stay organized, prepare for tax season, and truly understand where your money is going.

Why Categorization Matters for Creatives

• Helps you track which projects or clients are most profitable

• Ensures you don’t miss out on deductible expenses (like gear, software, or travel)

• Keeps your reports clean and ready for tax prep or funding opportunities

🎯 How to Categorize in QBO (Without the Headache)

1. Head to the Banking tab
   You’ll see all of your transactions from connected accounts.

2. Review each transaction
   Look at the amount, vendor, and description. Is it for editing software? Studio rental? A client payment?

3. Assign it the right category
   Use categories like “Software Subscriptions,” “Marketing,” “Client Income,” or “Supplies.” Avoid letting things sit in “Uncategorized.”

4. Add memos for clarity
   Note if the expense was for a specific project or client.

5. Set up rules for repeat expenses
   Automate common categories like Adobe or Canva subscriptions.

Tips for Creatives

• Use project codes or tags to organize by client or job

• Review your Profit & Loss report monthly to spot irregularities

• Keep a category for personal draws (if you're using a business account for non-business spending—though we don’t recommend it!)

FAQ

Can I deduct my Adobe subscription or Canva Pro?
Yes—these are considered software tools necessary for your creative work.

What if I mixed personal and business expenses?
Categorize them as “Owner’s Draw” and aim to keep accounts separate in the future.

How do I handle deposits from multiple clients?
Split and categorize them accurately to reflect income per project/client.

Can someone help me review all this?
Yes—Dr. Bryan Raya, QuickBooks ProAdvisor, can walk you through it.

🎨 Feeling overwhelmed by your books?

Book a free call with Dr. Bryan Raya and get personalized guidance for your creative business:
👉 https://calendly.com/dbrbookkeeping/30-minute-zoom-consultation-call

Let’s start Doing Business Right.

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