Small Business Expense Categorization Guide

A clear, simple way to organize your spending — and keep your books audit-ready.

One of the most common mistakes small business owners make is mixing up or mislabeling expenses.

Without proper categorization, you risk:

  • Missing deductions at tax time

  • Inaccurate financial reports

  • Confusion about where your money is really going

  • Unnecessary tax and compliance stress

At Kate’s Castle, we believe clarity starts with organization — and organization starts with getting your categories right.

This free Small Business Expense Categorization Guide helps you sort your expenses correctly, keep your books clean, and make smarter financial decisions.

What You’ll Learn Inside

This guide gives you a practical, easy-to-use framework for categorizing business expenses correctly — without needing an accounting degree.

Inside, you’ll find:

  • A clear breakdown of common business expense categories

  • Real examples for each category, including:

    • Advertising & Marketing

    • Travel & Meals (including deductible rules)

    • Professional Services (bookkeeping, legal, tax)

    • Office Supplies & Software

    • Utilities

    • Insurance

    • Training & Education

    • Rent or Home Office

    • Bank & Financial Fees

    • Inventory & COGS

    • Employee & Contractor Costs

  • Step-by-step guidance on how to apply the categories monthly

This isn’t just about neat books — it’s about financial visibility and control.

Why This Matters

Clean categorization is the foundation of every strong financial system.

When your expenses are categorized correctly, you get:

  • More accurate financial reports

  • Better tax deductions

  • Cleaner books at year-end

  • Easier collaboration with your CPA or bookkeeper

  • Clear insights into where your money is actually going

  • Smarter budgeting and profitability planning

This guide helps you move from messy transactions to meaningful financial insight.

Who This Guide Is For

This guide is for you if:

  • You’re unsure whether you’re categorizing expenses correctly

  • Your books feel disorganized or inconsistent

  • You want to maximize deductions and reduce tax stress

  • You want clearer financial reports

  • You’re ready to treat your business like a real company

Whether you’re DIY-ing your books or working with a professional, this guide strengthens your financial foundation.

About Kate’s Castle

Kate’s Castle helps business owners build clean, scalable, and intelligent financial systems.

From bookkeeping and expense management to financial strategy and automation, we help you transform your numbers into clarity — and clarity into confident decisions.

This guide is one of the first tools we use to help clients clean up their books and unlock better financial visibility.

Get the Free Guide

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No confusion. No messy books. Just clean financial clarity.

Want Personal Guidance?

This guide helps you stay consistent — but expert bookkeeping goes further.

At Kate’s Castle, we don’t just categorize expenses — we analyze patterns, cut waste, and help you plan for profit.

If you’d like support taking your bookkeeping to the next level, I offer a free 15-minute consultation to walk through your current setup and next steps.

Your numbers matter. Your structure matters.
Your castle deserves financial clarity.