This income and expenses tracking sheet is part of "The Headache-Free Guide On How To Pay Taxes As A Freelance Creative."
One of the mistakes new freelancers make is not tracking their business deductions. If you are self-employed, the bad news is you pay your taxes out of pocket rather than have it withheld from your paycheck.
But the good news is—you also get to deduct business expenses from your income, thereby reducing the taxes you have to pay. This is why good record keeping is super important—it’s your first step to making sure you don’t pay more taxes than you need to.
Don’t go out and get Quickbooks right away though—accounting software has its own learning curve. Instead, you can track income and expenses on a simple spreadsheet – or even on paper if you prefer something more tangible. There’s no need to go crazy with formulas, either, unless you’re a spreadsheet nerd like me. Simply list the income and expenses separately and add them up.
Here’s a simple Google Sheets template you can copy and use for yourself: