I don’t like numbers!

If this sounds like something you’ve said before, you’re in good company.

Turns out, a whopping 60% of entrepreneurs, including freelancers, grope in the dark when it comes to finances.

That’s alarming, especially when you consider that 82% of businesses fail due to poor cash flow management.

At doola, we’ve witnessed the journeys of hundreds of freelancers-turned-entrepreneurs.

Here’s the bright side, as we’ve seen it:

Freelancing is all about the freedom!

You’re the boss. You set your hours. You work from your favorite coffee shop.

A writer, designer, or digital nomad—you’ve had those months where money rolls in like confetti, and you’re making more than you can spend.

And the flip side?

Those slower months where your income dries up faster than your cold brew.

And that’s where every freelancer needs a few bookkeeping hacks up their sleeves.

Unlike larger businesses with accounting teams, when you’re self-employed, it’s all on you. Taxes, savings, expenses—it’s easy to feel overwhelmed.

We hear you.

To make this ride easier for you, the experts at doola have whipped up seven game-changing hacks that will keep:

Your finances on point and your profits up!

We are, in fact, your one-stop shop for turning that freelance gig into an LLC (Limited Liability Company), keeping you up-to-date with tax laws, and even handling quarterly taxes like a breeze.

So let’s doola it, shall we?

1. Separate Business and Personal Finances

Would you mix your gym clothes with your fancy workwear? Exactly.

The same rule applies to your finances.

Mixing personal and business expenses is a bookkeeping disaster waiting to happen. Not only does it make tracking expenses harder, but it can also lead to major headaches when tax season rolls around.

With payments rolling in—cash, checks, online transfers—having distinct accounts offers a clear view of how much money your business has at any given time.

This makes:

Bank reconciliations, budgeting, and pricing services easier.

Expense tracking tools like QuickBooks or FreshBooks can link directly to your credit card (or business account), automatically recording transactions and keeping your personal expenses out of the mix.

This segregation not only prevents financial chaos when filing taxes but also helps you avoid needless cash flow mishaps.

Ultimately, separating personal and business finances keeps your bookkeeping manageable, reduces time spent on reconciliation, and gives you sharper insight into your freelance financial health.

The Hack: Open a Separate Business Bank Account

And also, get a dedicated business credit card.

That way, when it’s time to categorize expenses or calculate deductions, everything is crystal clear.

A business account will give you a clear understanding of your finances, let’s see how:

a. Crystal-Clear Finances:

With a separate business account (and a business credit card too), you get a monthly statement that gives you a clear snapshot of:

• What you’re making

• What you’re spending

• How much you’ve saved

That’s budgeting gold!

b. Effortless Tax Write-Offs:

Tracking business deductions like software, laptops, and all those coffee-shop meetings becomes a breeze.

And icing on the cake? There are up to 100 small business tax deductions you can claim as a freelancer or entrepreneur.

Having a business account makes it so easy to keep everything in its lane.

c. Stay Audit-Ready:

If the Internal Revenue Service (IRS) ever comes knocking, a dedicated business account gives you a well-organized paper trail of your income and expenses.

It minimizes human error and ensures you’re audit-ready at all times.

The doola Advantage

doola’s Bookkeeping Services ensure your finances stay separate and clean.

With accurate tracking of all your business transactions, you’ll never have to worry about a missed deduction or tax misstep.

Additional Tip:

Having an Employer Identification Number (EIN) would help keep your business bank account separate from your existing savings account.

2. Automate Your Invoicing

If you’re still manually sending out invoices and hoping your clients pay on time, you’re living on the edge.

No successful entrepreneur operates like this. Not anymore.

Automating your invoicing system is one of the easiest ways to ensure you get paid promptly and stay organized without the hassle.

Here’s why automation is your best bet:

a. Get Paid Faster:

You can’t be waiting forever for checks to clear.

Automated invoicing tools let you whip up custom invoices, set reminders for slow-payers, and track every transaction—all in one place.

With just a click, you’re not only asking for payment—you’re making sure it lands in your account quickly.

b. Closely Track Your Income:

Automated invoices double as a real-time financial tracker.

• Want to know who your highest-paying client is?

• How much did you earn last month?

• What are you projected to bring in next month?

Automation gives you a full financial snapshot so you can budget confidently and always know where your money’s coming from.

c. Be Audit- and Loan-Ready:

Freelancers applying for loans or facing tax audits know the struggle of pulling together a year’s worth of financial records.

Automated invoicing keeps you stress-free. No scrambling for documents—everything’s organized and accessible at your fingertips.

Lenders and auditors love tidy records, and automation ensures your financials are audit-proof and ready to impress.

The Hack: Use Accounting Software or Invoicing Apps

Apps like QuickBooks automates reminders and tracks payments. This not only saves time but also helps maintain cash flow.

And Don’t Forget Your Vendors!

If you’ve got vendors to pay, don’t even think about doing it manually. Automated bill pay services let you connect your vendor, bank, and credit card accounts, ensuring you never miss a payment.

Set up recurring or one-time payments, and let the software handle the rest. No more calendar alerts, sticky notes, or last-minute rushes to avoid late fees!

By embracing automated invoicing and vendor payments, you’re not just saving time—you’re taking your freelance business from “surviving” to “thriving.”

It’s the ultimate hack for streamlining your workflow, boosting your cash flow, and freeing up more time to do what you love.

The doola Advantage

With doola’s bookkeeping and accounting solutions, you get access to top-tier software that streamlines invoicing, tracks payments, and even sets reminders for overdue bills—making sure you get paid on time, every time.

3. Keep Track of Receipts

Don’t wait until month-end to sort through your pile of receipts.

As a freelancer, you shouldn’t have a pile of paper receipts in the first place—they’re so last decade, and you live in the digital age.

By recording and categorizing receipts as they come in, you reduce the risk of misplacing them. This ensures that come tax season, you’ll have all the necessary documentation ready.

The Hack: Go Digital, Use Receipt-Tracking Apps

Use apps like Expensify, Wave, or QuickBooks to snap pictures of your receipts and store them online. This not only clears physical clutter but also lets you categorize expenses in real time, making bookkeeping a breeze.

Plus, you’ll have everything neatly organized and ready to go when tax time hits!

Here are a few more tips to make the process easier:

• Digitize receipts to streamline storage and retrieval.

• Organize documents by category and date for easy access.

• Use a cloud-based document management system to keep everything at your fingertips.

Fun Fact

Did you know that the average freelancer can claim tax deductions that account for about 20-30% of their income?

Keeping your receipts organized ensures you won’t miss out on any deduction opportunities.

The doola Advantage

At doola, we help you manage tax deductions with a clear, real-time view of your expenses so that come tax season, you can maximize your write-offs and save a ton!

4. Schedule Regular Bookkeeping Check-Ins

Freelancers are known for juggling multiple projects, deadlines, and clients all at once, which is why bookkeeping often takes a backseat until tax season—big mistake.

Waiting until the last minute to get your financial records in order can lead to stress, errors, and missed deductions.

The Hack: Block Time for “Financial Check-Ins”

According to the US Bureau of Labor Statistics:

Freelancers who regularly review their finances are 35% more likely to grow their business sustainably.

Block out time on your calendar each month (or week) for your check-ins.

During this time, you’ll review your income, track your expenses, and ensure everything is categorized correctly. Think of it as a self-audit to prevent any financial surprises down the line.

Whether it’s a weekly, bi-weekly, or monthly schedule, consistency helps prevent a backlog of financial transactions and ensures timely updates.

Manage Your Finances by Setting a Budget

As you get used to reviewing your finances, start setting and following a budget every month.

It helps you figure out how much you need to earn to cover your expenses and keeps you on track to avoid or manage debt.

Here’s how to create a freelancer-friendly budget:

• Review your income sources and estimate how much you’ll bring in.

• Identify all your business expenses.

• Subtract your forecasted expenses from your expected income to see where you stand.

• If your expenses outweigh your earnings, it’s time to adjust.

Prioritize spending, cut unnecessary costs, and balance that budget—no one wants to be in the red!

Here’s an example of a balanced budget for a freelance marketer:

Revenue:

a. Blog Writing: $2,500

b. SEO Consulting: $5,000

c. Email Campaign Management: $3,800

d. Social Media Management: $1,200

e. Online Course Sales: $3,300

Total Revenue: $15,800

Expenses:

a. Rent: $2,200

b. Utilities: $1,000

c. SEO Tools: $600

d. Hosting: $350

e. Office Supplies: $450

Total Expenses: $4,600

Surplus: $11,200

In this example, the revenue significantly exceeds the expenses, leaving a surplus of $11,200—keeping the budget in the positive!

The doola Advantage

doola makes these check-ins simpler with financial dashboards that give you real-time insights into your financial health.

It’s like having a bookkeeping assistant who’s always on top of things.

In fact, having your own dedicated bookkeeper is also an option with doola.

Speak to an expert today.

5. Plan for Taxes Ahead of Time

Did you know?

The IRS charges up to a 6% penalty for underpayment of estimated taxes.

Despite that, nearly 70% of freelancers admit they don’t set aside enough money for taxes.

Unlike employees, freelancers (or entrepreneurs) don’t have taxes withheld from their paychecks, so it’s up to you to plan ahead.

Waiting until April to worry about your tax bill is a recipe for panic. And penalties.

The Hack: Set Aside Funds for Taxes

One of the smartest moves by top US entrepreneurs is setting aside funds for annual tax bills.

And freelancers need to follow this strategy as a rule of thumb.

If you’re used to having an employer deduct taxes from your paycheck, transitioning to freelancing means you’ll need to manage this yourself—and your tax bill might be higher than what you’re used to.

Check out your country’s tax rate and stash away 25-30% of every payment you receive.

You can either do this manually or let an automated monthly deposit do the heavy lifting.

Also, paying quarterly estimated taxes helps spread the load, so you’re not hit with a huge tax bill.

And you’ll steer clear of those dreaded IRS penalties!

The doola Advantage

Experts at doola, specialize in tax compliance services for freelancers, helping you estimate your taxes throughout the year and avoid any surprises.

With our tools and our team of Certified Public Accountants (CPAs) creating tailored tax strategies, you can easily stay on top of your quarterly payments.

Book a CPA consultation today.

6. Use Cloud-Based Bookkeeping Tools

Gone are the days of saving everything to your desktop—or worse, scribbling numbers into a physical ledger.

Globally, 82% of businesses are now adopting cloud-based software for bookkeeping, and freelancers are no exception.

With cloud tools, your financial records are just a click away, anytime, anywhere.

Whether you’re running the show from your couch or while sipping coffee at some trendy cafe, mobile access keeps your books right in your pocket.

And the best part?

It integrates with other software, so you can export data like a pro and keep that ledger in perfect order!

The Hack: Break Silos, Use Integrated Cloud Tools

Your finances cannot live in silos.

Always use a centralized cloud-based platform to keep your bookkeeping in one place.

Tools like QuickBooks, FreshBooks, or Xero allow for:

• Seamless record-keeping

• Collaboration with accountants

• Easy access to financial reports

The doola Advantage

doola’s cloud-based accounting solutions integrate with your favorite tools, so you can stay organized without breaking a sweat.

Whether you’re on the road, working from home, or chilling at a café, your financial data is just a click away.

7. Set Up a Retirement Account

Retirement might seem far off, especially in your twenties, but time flies. And if you’re a freelancer, planning for retirement should be a top priority.

Set up a retirement savings account and calculate how much you can contribute each month.

Start by estimating your desired retirement income (ideally, around what you currently spend each year).

The Hack: Set a Yearly Savings Goal

And stick to it. That’s important.

This may mean taking on extra projects or cutting expenses to fund your future.

Also, at any given time, prepare for unexpected expenses.

Helping freelancers form their businesses over the years, we’ve seen how unexpected costs often derail their finances.

In fact, nobody is immune to such situations.

Just one medical bill or car repair could force you to dip into your retirement savings or borrow money.

That’s where an emergency fund comes in.

Set aside a small amount each month for unforeseen expenses—this safety net ensures you’re ready for life’s surprises without impacting your long-term financial health.

The doola Advantage

With doola, you’re not just setting up a retirement account—you’re designing a tailored financial future.

Our tools and experts provide long-term strategies that cover both the predictable and the unexpected, helping you build wealth and security while staying focused on your business growth.

Let’s make retirement planning part of your success story, one smart move at a time.

Book a free consultation today.

Bonus Hack: Lean on the Experts

Sometimes, the best hack isn’t a tool or an app—it’s a team of experts.

Freelancing already comes with enough challenges, from finding new clients to managing your workload. Why not let someone else handle the nitty-gritty of bookkeeping?

Outsource your bookkeeping to experts specializing in freelancer finances.

By delegating this task, you free up more time to focus on your work and your clients—plus, you ensure that your books are always balanced.

At doola, we’re here to handle all your bookkeeping needs.

From tracking expenses to managing taxes, our experts are dedicated to keeping your finances organized, compliant, and stress-free.

We understand the unique challenges freelancers face, and our customized solutions ensure you’re maximizing your tax savings while focusing on building and growing your business.

Let’s Put You on the Map

Bookkeeping may not be the most exciting part of freelancing, but it’s a game-changer when done right.

By following all seven hacks covered here, you’ll not only stay organized but also save time and money—two of the most valuable resources for any freelancer.

Ready to take your bookkeeping to the next level?

doola’s experts are here to help you streamline your finances, maximize your deductions, and make tax season a breeze. Don’t wait until tax time—get proactive now!

Get started with doola today, and let’s set your freelance business up for financial success.