Been freelancing for a few years now, and tax season always feels like a scramble. I’ve tried spreadsheets and basic accounting software, but I’m never sure if I’m tracking everything correctly.
Anyone else struggle with this? What’s your system for keeping finances organized year-round?
Get a simple accounting software like QuickBooks Self-Employed or FreshBooks. Link your bank accounts and credit cards. Categorize transactions weekly. Set aside 25-30% of income for taxes in a separate account. Keep all receipts in a folder, physical or digital.
Don’t overcomplicate it. Good records make tax time easy. I’ve been doing this for years and it takes me maybe 30 minutes a week. Come tax time, I just hand everything to my accountant. Saves me headaches and probably money too.
I’ve been there, trust me. For years, I used a messy combo of spreadsheets and a shoebox full of receipts. It was a nightmare come tax time.
Now I use Wave. It’s free and does the job for my small business. I snap pics of receipts with my phone and toss the paper. The app sorts most transactions automatically.
Every Friday, I spend 15 minutes checking things over. It’s become a habit, like brushing my teeth.
For taxes, I set aside 30% of everything I make in a separate account. Learned that the hard way after a rough year.
It’s not perfect, but it keeps me sane. And my accountant doesn’t yell at me anymore when I bring in my yearly mess.