Running a freelance gig, I’ve noticed accounting software can be pricey. I’ve been using spreadsheets to keep track, but it feels outdated.
I’m curious about how others manage their finances manually. Would love to hear what you all are doing!
Bank statements plus a simple folder system works well enough. I keep one folder for client payments and another for business expenses.
The main thing is tracking what clients owe you and when they actually pay. I use a basic list with client names, invoice amounts, and payment dates.
For expenses, just save receipts and add them up monthly. Your bank statement shows most transactions anyway.
Wave and FreshBooks have free tiers that handle basic invoicing and expense tracking. Skip the manual stuff and use those instead. You’ll spend less time on bookkeeping and more time making money. I tried the spreadsheet route for two years and it was a mess come tax time. The free software does everything you need without the headache of building your own system from scratch.
Spreadsheets aren’t outdated at all. I still use them for most of my tracking.
Here’s what works for me:
- Separate sheets for income and expenses
- Monthly tabs to keep things organized
- Simple categories like office supplies, travel, equipment
- Running totals so I know where I stand
For invoices, I just use a basic template in Google Docs. Copy it, fill in the details, save as PDF.
The key is keeping it simple and actually using it consistently. I update mine every few days so nothing gets forgotten.
Banking apps also help since they categorize transactions automatically. I just review those monthly and add anything missing to my spreadsheet.
Keep receipts in a shoebox and use your bank statements. Simple math once a month works fine.
I went the envelope method route when I started out. Had four envelopes - one for business income, one for expenses I could write off, one for taxes, and one for personal pay.
Every time money came in, I’d split it up right away. 30% went to taxes, then I’d take out expenses, and the rest was mine. Kept all receipts in the expense envelope.
For tracking clients, I used index cards. One card per client with what I invoiced them and when they paid. Sounds old school but it worked.
The envelope thing taught me to actually separate business money from personal money, which most accounting software assumes you already do. Once I figured out those habits, moving to software later was way easier.
Just make sure you’re setting aside tax money from day one. That’s the part that bites people who don’t use proper accounting tools.
I just use a notebook and write everything down.