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Kajabi Essentials: Tax & Accounting Tips For Your E-Learning Online Business

Picture of Trevor McCandless, CPA, MTax
Trevor McCandless, CPA, MTax

1 May 2022

If you host an online course or e-learning program or if you are preparing to do so, you may have heard of Kajabi. Kajabi is a knowledge commerce platform. It allows you to promote, create, and sell digital products, like for example, an online coaching course. Essentially, Kajabi serves as a content management system CMS that provides the following tools to support your online business:

  • a website
  • online course infrastructure
  • membership sites
  • quizzes and surveys

With Kajabi, you should be able to collect payments and create a customized checkout experience for each of your members based on their purchasing habits.

Kajabi Pricing and Plans

The first thing on the how-to-use Kajabi checklist is the Kajabi pacing plans. Kajabi offers a 14-day free trial for all of its plans. There is usually no risk and no long-term commitment. You will need to enter your credit card information, but they will not charge it if you cancel within the first 14 days. You can choose from three plans- Basic, Growth, and Pro. The Kajabi pricing for these plans starts at $119 for the basic level. When doing your accounting services for your online course business, you should include the subscription for Kajabi as a deduction since it may be considered an ordinary and necessary expense for teaching your online course.

Accounting Tips For E-Learning Kajabi

While Kajabi offers ways to market yourself, you may create an additional website, hire a search engine optimization professional, or do a paid social media marketing campaign. These things should be factored in as deductions when accounting for your online course business.

The following is a list of possible tax deductions in this area:

  • Promotion or advertisements.
  • content writing: hiring a copywriter to write your ads, content for your website, blog, etc.
  • Visuals: hiring a graphic designer to design your website, flyers, etc.

Making the Most of Kajabi’s Hero University

Kajabi’s Hero University is a dynamic resource created to help users run their online businesses. It covers a lot of the basics, including marketing, account information, billing, and company announcements.

Hero University is a great resource to help you become familiar with the platform. Besides what you learn on this site, you may want to learn more about web design, graphic design, teaching, or the subject you will present in your course.

If according to the IRS rules, your education qualifies as work-related, you may be able to deduct it from your self-employment taxes as part of your online course company’s tax planning. At Fusion CPA, our small business accountants may be able to help you determine if your education qualifies as a business expense.

Use Kajabi Analytic Tools to Improve Your Online Course Company Accounting

Kajabi has a powerful analytics tool that shows you affiliate sales, marketing reports, and other financial information separated by day, week, and month. This information should be used with your online course company accounting as it can be compared to the income statement, cash flow statement, and balance sheet being managed by you or your online course company’s CPA.

Keeping Your Online course Company Running Strong

Kajabi is an excellent tool for helping you create, sell, and online market courses. However, solid accounting, bookkeeping, and tax planning processes should be in place to help maintain the structure of your business.

At Fusion CPA, our team of online course company accountants understands the unique tax and accounting challenges e-learning businesses like yours may face. We offer to help you create tax-saving strategies designed to help you maximize deductions and minimize tax liability. Our CPAs offer to prepare financial statements that may show banks and investors the viability of your online course business. You can learn more about our services and how we can assist you, by clicking the button below to schedule a complimentary discovery call today!

Schedule a Discovery Call

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This blog article is not intended to be the rendering of legal, accounting, tax advice or other professional services. Articles are based on current or proposed tax rules at the time they are written and older posts are not updated for tax rule changes. We expressly disclaim all liability in regard to actions taken or not taken based on the contents of this blog as well as the use or interpretation of this information. Information provided on this website is not all-inclusive and such information should not be relied upon as being all-inclusive.

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This blog article is not intended to be the rendering of legal, accounting, tax advice, or other professional services. We base articles on current or proposed tax rules at the time of writing and do not update older posts for tax rule changes. We expressly disclaim all liability in regard to actions taken or not taken based on the contents of this blog as well as the use or interpretation of this information. Information provided on this website is not all-inclusive and such information should not be relied upon as being all-inclusive.
 
About this article and how we use AI
This article is provided for general informational and educational purposes only and does not constitute tax, legal, accounting, or financial advice. Tax laws change and apply differently depending on your specific circumstances. Nothing here creates a client relationship with Fusion CPA, and it should not be relied upon or acted on without consulting a qualified professional about your own situation. To discuss how these rules apply to you, contact Fusion CPA at info@fusiontaxes.com.
Fusion CPA articles are grounded in the professional experience of our CPAs and the situations we encounter in practice. Scenarios described are illustrative composites, not any individual client’s facts. We use AI tools to assist with drafting and research. Before publication, every article is verified against primary sources such as the IRS and state departments of revenue and is reviewed for technical accuracy by a licensed CPA, who is named on the piece.
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