How Coaches Can Categorize Expenses

If you’re a coach, whether you specialize in mindset, business, health, or something in between, you didn’t start your business to become a part-time bookkeeper. But here you are, trying to figure out whether your Zoom subscription is a business expense or if that café meeting with a client counts as a write-off.

Here’s the good news: it doesn’t have to be this hard.

This guide will show you exactly how to categorize your expenses in a way that’s simple, strategic, and aligned with how you actually run your coaching business. Even better? You’ll discover how Cashflowy can handle the heavy lifting for you, automagically.

Let’s get into it.

Why Expense Categorization Matters (A Lot)

Categorizing your business expenses isn’t just about staying “organized.” It’s about understanding where your money is going so you can:

• Pay yourself consistently and confidently

• Maximize your tax deductions

• Avoid surprises at tax time

• Make informed, strategic business decisions

• See what’s actually helping your business grow, and what’s not

When your finances are messy, so is your confidence. Categorizing your expenses puts you in the driver’s seat, not your receipts.

What Counts as a Business Expense for Coaches?

According to the IRS (and common sense), any expense that is ordinary and necessary for running your coaching business is considered deductible. Here’s how that plays out in real life for coaches:

Professional Development

Think of this as investing in your growth. This includes:

• Coaching certifications

• Online courses and workshops

• Business masterminds

• Educational books and resources

Business Tools and Software

The digital tools you rely on to run your business fall here:

• Zoom or Google Meet

• Email marketing platforms (like ConvertKit or MailerLite)

• Scheduling software (like Calendly or Acuity)

• Design tools (like Canva Pro)

• Your Cashflowy account

Marketing and Advertising

Any effort to promote your business counts:

• Paid ads (Facebook, Instagram, Google)

• Graphic design for lead magnets or social media

• Branding photoshoots

• Copywriting services

Website and Hosting

Your website is your storefront. These expenses are deductible:

• Hosting fees (like SiteGround or Bluehost)

• Website builder subscriptions (like Squarespace or WordPress)

• Design and development costs

• Landing page tools like Leadpages or Kartra

Client Costs

Anything you buy for clients or to enhance the client experience:

• Welcome gifts

• Course materials

• Client software access

• Session recap tools

Office Expenses

If you work from home, you can deduct a portion of:

• Rent or mortgage (calculated based on workspace size)

• Utilities and internet

• Office supplies or furniture

Pro tip: If you’re a digital nomad coach or travel often, be sure to track expenses related to business travel. Tools like Cashflowy make this simple, even across multiple currencies.

The Cashflowy Way: Categorizing Made Simple (and Smart)

Manually categorizing transactions every month is... not the vibe. That’s why Cashflowy automates it for you.

Here’s how it works:

• Every transaction is tracked and auto-categorized, using smart AI rules that learn as you go.

• You can set custom rules or adjust any category with a single click.

• Split transactions for expenses that are part personal, part business.

• Instantly generate tax-ready reports grouped by category, no more spreadsheet panic attacks.

Instead of stressing over what goes where, Cashflowy gives you clarity in minutes.

What Categories Should Coaches Use in Their Chart of Accounts?

Here’s a simple starter set of categories coaches can use inside Cashflowy (or any accounting system):

You can also create subcategories for more detail, but don’t overcomplicate it. Simplicity is your friend.

How Often Should You Categorize Expenses?

If you're still doing this manually, you'll want to review and categorize expenses at least monthly. But with Cashflowy, categorization happens automatically in real-time.

Still, we recommend reviewing your categorized transactions once a month for accuracy, especially if you're syncing multiple bank accounts or using a business credit card.

Set aside 15 minutes with your favorite playlist and a cup of coffee. It’s the quickest financial power move you can make.

Common Mistakes Coaches Make (And How to Avoid Them)

1. Mixing Personal and Business Expenses

Keep your accounts separate. Always. (Seriously.)

2. Forgetting Recurring Subscriptions

These small charges add up fast. Let Cashflowy tag and track them so you stay on top of what you’re really spending.

3. Not Tracking Cash Purchases

Grabbing a coffee with a client? That counts, but only if you record it. Snap a photo of the receipt and upload it.

4. Guessing at Tax Time

When expenses are categorized all year long, your tax-ready reports are ready whenever you are. No guessing games required.

What Happens If You Don’t Categorize Expenses?

You might:

• Miss out on deductions

• Overpay in taxes

• Misunderstand your business’s true profit

• Waste time during tax season

• Feel generally disorganized and frustrated

That’s a hard no from us.

With Cashflowy you don’t just categorize, you clarify. You get the full picture of your business, where it’s growing, and what’s holding it back.

You Don’t Need to Be a Bookkeeper. You Just Need Cashflowy.

If expense tracking feels overwhelming, you’re not the problem, your system is.

Cashflowy is built for coaches and solopreneurs who want clarity without the complexity. You don’t need spreadsheets, fancy accounting software, or a finance degree. You just need a system that works with you, not against you.

• Categorize automatically

• Track income and expenses in real time

• Split and tag transactions effortlessly

• Get tax-ready reports at the push of a button

Take the Next Step

If you’ve been winging it with your finances, this is your sign to stop guessing and start categorizing like a CEO. Start your free trial of Cashflowy today and see how easy financial clarity can feel: No spreadsheets. No stress. Just you and your business, finally on the same page.