💼 QuickBooks Online Tip: How to Categorize Transactions (for Coaches & Consultants)
As a coach, consultant, or service provider, your time is best spent serving clients—not sorting through messy books. But if your QuickBooks Online (QBO) transactions are unorganized, it can lead to missed deductions and unclear financials.
Categorizing transactions properly is the first step to getting control over your finances—and growing your business with clarity.
Why It Matters
Helps track income by service or program
Simplifies tax prep by keeping deductions clean
Makes it easier to evaluate what’s working in your business
📊 How to Categorize in QBO (Step-by-Step)
Open the Banking tab
Review the list of transactions pulled from your connected bank and credit card accounts.Assign a category to each transaction
Zoom subscription → “Software/Subscriptions”
Coaching client payment → “Consulting Income”
Business lunch → “Meals & Entertainment (50%)”
Add a memo or tag
Note which client, program, or service the income/expense is tied to.Set up bank rules
Automatically categorize recurring payments (Stripe payouts, Zoom, Calendly, etc.)Review reports monthly
Stay on top of your Profit & Loss and cash flow to keep your services profitable.
Tips for Coaches & Consultants
Keep categories for: marketing, client gifts, continuing education, software, and travel
Use tags to track income by program, course, or client
Categorize contractor payments clearly for 1099 reporting
FAQ
Can I track income by coaching program or offer?
Yes—use tags or classes in QBO to segment your income.
What’s deductible as a business coach?
Courses, software, travel, and even home office expenses (if applicable) can be.
How do I simplify tracking recurring client payments?
Use recurring invoices and automate categorization using bank rules.
Can I get help cleaning up past transactions?
Absolutely. A QuickBooks ProAdvisor can help get you back on track.
📅 Want help setting up or cleaning your QuickBooks?
Book a free call with Dr. Bryan Raya, QuickBooks ProAdvisor:
👉 https://calendly.com/dbr_bookkeeping/book-a-free-call-with-dbr
Let’s start Doing Business Right.
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