Freelancing for a while now, and I’ve yet to master tracking my expenses. It’s always a mad rush during tax season, sifting through piles of receipts.
Right now, I just dump everything in a box and hope for the best, but I need a reliable method that actually works.
I keep a notebook and jot down expenses weekly.
Take a photo of receipts right when you get them. Way easier than digging through boxes later.
Get a cheap accordion folder with monthly tabs. Throw receipts in the right month when you get home. End of month, add up each category and write totals on an envelope. Takes maybe 20 minutes per month instead of days at tax time. Been doing this for over a decade and my accountant loves getting organized numbers instead of a shoebox full of crumpled paper.
Use a simple envelope system for each expense type. Office supplies, gas, meals, equipment repairs.
When you get a receipt, it goes straight into the right envelope. At tax time, you just add up each envelope and you’re done.
I keep mine in my truck so I never forget to sort them.
Been there with the box method. What finally worked for me was setting up a simple spreadsheet with these columns:
I update it every Friday while I have coffee. Takes maybe 10 minutes.
For receipts, I scan them with my phone and save to a folder named by month. The spreadsheet has everything I need, but the photos are backup if anyone asks questions.
Game changer was doing it weekly instead of waiting. Now tax time is actually manageable.
Box method is a nightmare. I did that for two years and almost missed major deductions.
What saved me was opening a separate business bank account and putting everything on one card. No more sorting through personal vs business expenses later.
For cash stuff, I email myself the receipt photo right away with the amount and what it was in the subject line. Like “$47 office supplies Target.” Takes 30 seconds but creates a searchable record.
At month end, I just scroll through my card statement and email folder. Everything is already there. Way less stressful than playing detective with old receipts.