Just started taking on more contract work and realizing I need to get my finances in order. Been using my personal account for everything so far. Feels messy and I’m worried about tax implications.
Anyone else been through this? How’d you set up your accounts and track expenses?
Open a business checking account. Deposit all your contract income there. Pay yourself a regular draw to your personal account. Keep receipts for business expenses and pay them from the business account. Makes taxes simple. Your accountant will thank you.
Basic bookkeeping software helps track everything. QuickBooks is fine, but even a good spreadsheet works if you’re organized. Main thing is consistency. Log income and expenses weekly so it doesn’t pile up.
Get a separate bank account for work stuff. Makes life easier come tax time. I just use a basic spreadsheet to track jobs and expenses. Nothing fancy but it works.