Bookkeeping for Coaches: 4 Habits to Keep Your Accounts Organized

Let’s face it: bookkeeping isn’t exactly what you imagined doing when you launched your coaching business. Building a connected community and helping clients achieve transformations? Yes. Categorizing transactions? Not so much.

But, no matter how boring, confusing, or time-consuming bookkeeping is, it’s necessary for all business owners — coaches included. 

So, whether you’re dedicated to DIY-ing your bookkeeping, dreaming about outsourcing, or just trying to push through until next quarter when you can officially bring a bookkeeper into your business, these are four habits to keep your accounts organized and make bookkeeping for coaches that much easier:

4 Bookkeeping Habits for Coaches You Can Use to Keep Your Accounts Organized

Again, no one said bookkeeping was fun (and if I did, I was specifically referring to me, the bookkeeper in love with numbers), but keeping healthy bookkeeping habits in your coaching business will make a huge impact come tax time. 

Bookkeeping provides more accurate financial reporting and insight, cash flow management (which is extremely important), and tax preparation and compliance (which keeps you legal).

Luckily, most of these habits are easy to work into your daily, weekly, or monthly routine — just remember to start simple, hold yourself accountable, and give yourself some wiggle room for the learning curve.

#1. Separate Your Business and Personal Accounts — and Keep Them Separate

If you don’t already have a business bank account, it’s time to get one. I recommend Relay, an online-based business account without a monthly maintenance or transaction fee. If you have a business account, keep your personal transactions out of it!

#2. Track Your Income and Expenses

Spend time categorizing all your income and expenses in the correct account. Don’t wait to do it all at once — it’s a quick way to become overwhelmed with all your transactions (and opt out of getting it done).

#3. Double-Check Your Automations

I love Quickbooks as much as the next bookkeeper, but you can’t put too much faith in your automations. Always go through and double-check that your automations are accurate and everything is going where it’s supposed to!

#4. Reconcile Your Accounts Once a Month

Essentially, you should be comparing your account records (your bank account, credit cards, etc) to what you have in your bookkeeping software. Do this once a month to keep your accounts accurate! It’ll be a pain if you’re off but don’t notice it until a few months later.

What Happens if You Don’t Keep Up With Your Bookkeeping as a Coach

Your finances are inaccurate, your taxes are off, and you’re confused about what you’ve spent and where. Essentially, you’re stuck making estimates and guesses about how much you’ve made, when you made it, and where you’ve spent it (making it harder to invest in your business, track deductions, and make informed decisions).

Keeping up with your bookkeeping also provides audit protection—you’re organized in case of an audit (which can be very random). If your receipts are unorganized and your financials are all over the place, you’re essentially exposing yourself to owing money.

One of the reasons why many coaches choose to outsource their bookkeeping is because of the pressures they face and the learning curve that comes with it. Could they do it? Absolutely, they’re skilled, accomplished coaches. Would they rather spend their time elsewhere, such as serving clients? 100%.

If you’re a coach and you’re ready to outsource your bookkeeping, let’s chat and see how I can help you gain more clarity, security, and support in your finances.