Hey fellow freelancers, I'm curious about how others manage their income from freelancing. UpWork provides many reports that help us to track income. Do you guys track your incoming from freelancing like you would business income - entering it into an accounting system, tracking payments to yourself (like you would a salary), tracking money that you spend on business expenses etc?
I keep track of my income and expenses in general using an app. However, this is also my income from my day job and my freelancing. Also, I just enter lump sums (how much I earned for the entire month from UpWork clients). I also tried to start using a small business cloud accounting system, but haven't done a good job keeping on top of that. I want to know what others are doing, so that I can hopefully learn something.
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I receive my payment weekly...
Payment is processed by Upwork on Wednesday, I receive it in my account by Friday morning and by Monday morning its all gone. But it makes for one hell of a weekend!!!
From Monday to Wednesday morning, I contemplate on what I could have done if I had saved the money and how I will exercise restraint in the future....
Come Wednesday evening, we are back to our partying ways,
As Sheldon would have said..."We are living like hippies"
I'm an anarchist and perpetually disorganized. I wing it on everything. So, I just download a spreadsheet at the end of the year and remember what I spent.
Of course, this disorganization is also why I forgot to write off $3500 last year, so yeah, I'm probably not a good example of anything remotely related to responsibility.
My dog is 8 and hasn't died yet. I consider this an accomplishment.
I actually started interviewing accountants Preston H. I'm a bit more interested in how other freelancers manage their business.
I use Freshbooks to do my bookkeeping, but there are several other programs out there like Godaddy Bookkeeping fairly simple to use and easy to import your bank information and Quickbooks now has a new Quickbooks Self Employed that is fairly cheap. They do not offer invoicing like Freshbooks does, but if you don't work other then Upwork you wouldn't need the invoicing feature of Freshbooks.