Been freelancing for a few years now, and my expense tracking is a mess. Receipts everywhere, forgotten expenses, and tax time is always a nightmare.
Curious how other solo contractors handle this. Spreadsheets? Apps? Shoebox method? What’s actually working for you?
Ditch the wallet method. Get a basic accounting app on your phone. I use QuickBooks Self-Employed. Snap pics of receipts right when you buy stuff. Set up categories for different expenses. Takes a minute to learn, saves hours come tax time. Don’t mess with spreadsheets, they’re more work than they’re worth. An app syncs with your bank, categorizes most stuff automatically. You’ll thank yourself when it’s time to file taxes or show a client your costs.
I just use my phone. Take pics of receipts when I buy stuff. Keep 'em in a folder. Not fancy, but it works for me. Beats digging through piles of paper later.
I keep it simple. One business credit card for everything.
At the end of each month, I go through the statement and sort expenses into categories. Takes about 30 minutes.
For cash stuff, I keep receipts in an envelope. Not perfect, but it works for me and doesn’t eat up too much time.
I’ve gone through a few systems over the years. Started with a basic spreadsheet, but it was too easy to forget entries.
Then I tried the envelope method - one for each expense category. It worked okay, but was a pain to total up.
Now I use Wave. It’s free, and lets me snap pics of receipts on my phone. It links to my bank account too, so most transactions get categorized automatically.
The key for me was finding something simple enough that I’d actually use it consistently. Whatever system you pick, make it a habit to log expenses right away. Even a basic app is better than scrambling at tax time.
Just my two cents from years of trial and error. Hope you find something that clicks for you!
I’ve tried a bunch of methods, but here’s what finally worked for me:
The key is making it dead simple. I used to put it off, but now it takes barely any effort.
FreshBooks isn’t free, but it saves me so much time. It pulls in all my transactions, lets me categorize on the go, and spits out nice reports for taxes.
Whatever you choose, just make it a habit. Set a weekly reminder to review and categorize. Future you will be grateful when tax season rolls around.
Remember, keeping good records isn’t just for taxes. It helps you see where your money’s really going and make smarter business decisions.
Receipts in my wallet. Gotta remember to write stuff down.