Self-employed workers do not have an employer keeping records for them. A short routine once a week replaces a long, painful weekend in April.
Minute 1 to 5: income
Record every payment received that week, with the payer, date and amount. Use a business account for all of it so the bank statement backs up your list.
Minute 6 to 10: expenses and receipts
Photograph each receipt and file it in one folder by month. Note what each expense was for. Lost receipts are lost deductions.
Minute 11 to 13: miles
If you drive for work, log each business trip with the date, purpose and miles. Our mileage log keeps a running total you can download.
Minute 14 and 15: set money aside
Move the percentage your CPA recommends into a separate savings account for taxes. Our set-aside planner shows the monthly and quarterly amounts.
Once a quarter
Check the estimated tax dates, compare your records to your bank statements, and send your CPA anything they ask for. In January, match your records to the 1099 forms you receive.
General information, not tax advice. Your CPA decides what is deductible and how much to pay.
This article is general information, not legal, tax or regulatory advice. Rules change; confirm current requirements with the responsible agency or a licensed professional.
