Keep clean records all year so tax time is quick. This is a record-keeping guide, not tax or legal advice. Rules differ by country and state.
What to track
- Income: date, client or platform, description, amount, paid or not.
- Expenses: date, vendor, category, amount, receipt saved.
- Mileage: date, start and end odometer, miles, business purpose.
Common expense categories
Gas and vehicle, phone and internet, supplies and materials, tools and equipment, software and subscriptions, platform and payment fees, advertising, insurance, education and training, home office share, business meals, other.
Year-end checklist
- [ ] Total income matched to platform statements (1099-K / 1099-NEC where they apply)
- [ ] Total expenses by category with receipts for large items
- [ ] Total business miles and the purpose of each trip
- [ ] Set aside money for estimated quarterly taxes (ask a tax professional how much)
- [ ] Keep business and personal money in separate accounts
- [ ] Save digital copies of invoices, contracts and receipts
- [ ] Check for a local business license or sales-tax permit
- [ ] Review fees: are platform fees eating your margin?
Habits that work
- Log income the day you get paid.
- Photograph receipts right away.
- Pay yourself a fixed amount monthly and leave the rest in the business account.
- Price for tax: take-home is lower than gross income.
Want the printable sheets?
The Side Hustle and Gig Work Tracker PDF has the income log, expense log, mileage log, invoice, 12-month category summary and year-end checklist, ready to print: https://spectre5.gumroad.com/l/mqhojb ($6)
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