34-a).Track Income and Expenses

This should go without saying but you need to know how much you are making and how much you are spending since you are a business. It is highly recommended you hire an accountant to do this for you since this can overwhelm you from time to time. If you decide to do it on your own, then here is the bare minimum you must do:
• Create an Excel spreadsheet or use a notebook to track all income received from freelance work. Make sure you jot down every cent earned. If you can, track your income by job/project too.
• Also using a spreadsheet or notebook, track every expense made as a freelancer. This includes rent, utilities, subscription fees, equipment, office supplies, etc. Be sure you have a receipt or somehow be able to account for each expense, too.
• Make sure you set aside part of your income for taxes. The best method is to create a savings account specifically for tax withholding and deposit 30% - 40% of your received income into it. Please refer to your country’s tax tables for an idea of what your withholding should be. Do not ignore income taxes! The last thing you want is trouble with “the man.”