It is important that you keep a good record of your income and expenses when you are self-employed. If you keep on top of your book-keeping every month then you won’t be left with a big headache at the end of the year and it also means that you have a good idea how much your taxable income is going to be as you go along, which should help you know how much money to put aside (your accountant should be able to help you with this).

You can get an Excel template from usĀ HERE. This will allow you to record your income and expenses and keep a track of your profit. If you don’t have Excel you canĀ import it into Google Docs or Apple Pages very easily.

Alternatively you might want to try out the awesome online system FreeAgent which is perfect for the self employed – you can try it out for free here.

Key tips:

  • Have a separate bank account for your business to keep your personal finances separate – this could just be a second current account if you don’t want to open a business account
  • Log your costs by category e.g. travel, software, advertising etc.
  • When logging your costs have a receipt reference so you can tie back the cost to a hard copy receipt (or electronic)
  • If you are keeping electronic copies of receipts make sure you have a strong backup system in place.
  • Make a note of when you have raised a sales invoice to a client and also when it has been paid