If you’re a freelancer or sole trader, you’re probably juggling a dozen hats—client work, marketing, emails, maybe even the occasional existential crisis. But one hat that often gets pushed to the bottom of the pile? Bookkeeping.
And look, I get it. It doesn’t exactly spark joy. But solid bookkeeping isn’t just about taxes—it’s about understanding your business, making smarter decisions, and keeping the ATO happy (so you can sleep at night).
Here’s what you really need to know to stay on top of things:
1. Separate Your Business and Personal Finances
First rule of freelance finance: don’t mix your personal spending with your business income. Open a separate bank account for your business and run all income and expenses through it. Trust me—your future self (or your bookkeeper) will thank you.
2. Know What You Can (and Can’t) Claim
Common deductible expenses include:
- Internet and phone (if used for work)
- Office supplies
- Software subscriptions
- Travel for client work
- A portion of home office costs
But beware—personal expenses disguised as business ones (like your trip to Bali “for inspiration”) might raise some red flags. Chat to your tax agent about what is an isn’t deductible in your specific business situation.
3. Keep Records (Without Losing Your Mind)
No need to go full spreadsheet wizard (unless of course you want to!). Use simple software like Xero, QuickBooks, or even a spreadsheet template to track income and expenses. Save receipts digitally—apps like Hubdoc or just a photo stored in a Google Drive, Dropbox or OneDrive folder work wonders.
4. Set Aside Money for Tax
Don’t get caught short when EOFY tax time rolls around. A good rule of thumb: set aside 25–30% of every payment you receive, for Income Tax. That way, you’re not scrambling later, and you may end up having more set aside than you need (bonus!).
5. Know When to Ask for Help
If you’re spending more time fiddling with numbers than doing your actual work—or if you’re losing sleep over it—it might be time to get support. Even a one-off session with a bookkeeper can make a huge difference.
Bookkeeping doesn’t have to be overwhelming. With a few simple habits, you can keep your finances in order, stress levels down, and stay confidently in control of your business.
And if you need a hand? I’ve got your back. Check out my course and Boss of Your Books membership for more info.
