# Freelancer Bookkeeping: [Business or trading name]

> A monthly bookkeeping and cash flow routine for freelancers, sole
> traders and very small businesses run by one person. It covers the
> accounting basis, a simple chart of accounts, separate business and
> personal money, an income and invoice log, an expense and receipt
> log, a tax set-aside rule, owner pay, bank reconciliation, a monthly
> close checklist, a 13-week cash flow forecast, a year-end pack for an
> accountant and record retention. It is based on public tax
> authority guidance (US IRS Publication 583, revised December 2024,
> and UK HMRC guidance for the self-employed) and written in plain
> language for any country. Replace every `[bracketed]` value and
> every row marked *Example*. This is a document format, not
> financial, tax, legal or accounting advice. Tax rules, thresholds and
> forms differ by country and change often; obtain the law or official
> guidance for the normative text and check with a qualified adviser.

<!--
Guidance: How to use this template
- Keep one file per business per year. Fill sections 1 to 3 once,
  then repeat sections 4 to 10 every month.
- Bookkeeping is the record of what came in and what went out, with
  evidence. Tax returns, invoices and financial statements are built
  from it, so accuracy matters more than speed.
- Start with section 2 (separate accounts). Without a dedicated
  business account most other sections become guesswork.
- The worked example is Alex Rivera, a fictional freelance graphic
  designer in the United States who reports in USD on a cash basis.
  Alex is a different person from the salaried Ellison household used
  in the other personal templates. The clients are fictional too. Delete the example rows when you
  have entered your own.
- Related templates: Invoice (`business/invoice`), Budget
  (`personal/budget`), Tax Document Checklist
  (`personal/tax-document-checklist`), Emergency Fund Plan
  (`personal/emergency-fund-plan`), Financial Plan
  (`personal/financial-plan`), Retirement Plan
  (`personal/retirement-plan`).
-->

## Document control

<!-- Guidance: Identify the business, the tax year and who keeps the books. If an accountant or bookkeeper reviews the records, list them as reviewer. Common pitfall: mixing two tax years in one file. -->

| Field | Value |
|---|---|
| Document ID | [BKP-YYYY] |
| Version | [1.0] |
| Status | [Active / Closed for the year / Sent to accountant] |
| Owner | [@business-owner] |
| Approvers/reviewers | [Accountant or bookkeeper, if any] |
| Last updated | YYYY-MM-DD |
| Classification | [Confidential: contains client and tax data] |
| Business or trading name | [Name] |
| Legal form | [Sole trader / Sole proprietor / Single-member company / Other] |
| Tax identification | [Store the number in a secure place; write only where it is kept] |
| Tax year | [YYYY-MM-DD to YYYY-MM-DD] |
| Reporting currency | [Currency code] |
| Accounting basis | [Cash / Accrual] |
| Sales tax or VAT registered | [Yes, number kept at: ... / No] |
| Business owner *(Example)* | Alex Rivera, freelance graphic designer, sole proprietor, United States, tax year 2026-01-01 to 2026-12-31, USD, cash basis, not registered for sales tax |

### Approvals

| Role | Name | Decision | Date |
|---|---|---|---|
| Business owner | [Name] | [Records complete for the period] | YYYY-MM-DD |
| Accountant or bookkeeper | [Name] | [Reviewed / Questions raised] | YYYY-MM-DD |
| Business owner *(Example)* | Alex Rivera | October 2026 closed | 2026-11-03 |

### Revision history

| Version | Date | Author | Change |
|---|---|---|---|
| 1.0 | 2026-10-25 | [Template authors] | First release of the template |
| [x.y] | YYYY-MM-DD | [@author] | [What changed: new account, new tax rate, new client terms] |

## Contents

- [1. Business profile and accounting basis](#1-business-profile-and-accounting-basis)
- [2. Accounts and money flow](#2-accounts-and-money-flow)
- [3. Chart of accounts](#3-chart-of-accounts)
- [4. Income and invoice log](#4-income-and-invoice-log)
- [5. Expense and receipt log](#5-expense-and-receipt-log)
- [6. Tax set-aside rule](#6-tax-set-aside-rule)
- [7. Owner pay](#7-owner-pay)
- [8. Bank reconciliation](#8-bank-reconciliation)
- [9. Monthly close checklist](#9-monthly-close-checklist)
- [10. 13-week cash flow forecast](#10-13-week-cash-flow-forecast)
- [11. Quarterly and year-end tasks](#11-quarterly-and-year-end-tasks)
- [12. Record retention and storage](#12-record-retention-and-storage)
- [13. Local equivalents](#13-local-equivalents)
- [14. Glossary](#14-glossary)
- [15. References](#15-references)
- [Standard and licence note](#standard-and-licence-note)

## 1. Business profile and accounting basis

<!-- Guidance: Record the facts that decide how the books are kept. Questions to answer: Cash or accrual basis? Which taxes apply (income tax, self-employment or social contributions, sales tax or VAT)? Common pitfall: choosing a basis by habit; many small businesses may use cash basis, but some must use accrual. Check local rules. -->

There are two ways to decide when income and expenses are counted:

- **Cash basis**: income is recorded when money arrives and expenses
  when money leaves. It is simple and matches the bank account. Many
  small sole traders are allowed to use it (in the UK it has been the
  default for most sole traders since the 2024-25 tax year, with an
  option to elect accruals; check gov.uk).
- **Accrual basis**: income is recorded when it is earned (usually when
  the invoice is issued) and expenses when they are incurred, even if
  payment happens later. It gives a truer picture of profit for a
  period but needs a list of unpaid invoices and unpaid bills.

Whichever basis you choose, use it consistently for the whole year and
tell your accountant which one you use. Some tax systems limit who may
use the cash basis or require permission to change basis; check with
the tax authority.

| Item | Value |
|---|---|
| Main activity | [Services provided] |
| Start date of the business | YYYY-MM-DD |
| Accounting basis and reason | [Cash: simple, matches bank / Accrual: required or preferred because ...] |
| Taxes that apply | [Income tax / Self-employment or social contributions / Sales tax, VAT or GST / Local business taxes] |
| Filing and payment calendar | See section 11 |
| Payment terms offered to clients | [Net 14 / Net 30] |
| Main payment channels | [Bank transfer / Card processor / Payment platform] |
| Accountant | [Name and contact, or "none"] |
| Main activity *(Example)* | Brand identity and editorial design for small organisations |
| Taxes that apply *(Example)* | US federal and state income tax; self-employment tax, which the IRS describes as 15.3% (12.4% social security plus 2.9% Medicare) on 92.35% of net earnings, with the 12.4% part only up to the yearly social security wage base, filed on Schedule SE when net earnings are 400 USD or more |
| Payment terms *(Example)* | Net 30 for organisations, Net 14 for individuals |

The self-employment tax facts above are a US example only, as
published on irs.gov in October 2026; check the current IRS page and
your own country's rules.

## 2. Accounts and money flow

<!-- Guidance: Separate business and personal money before anything else. Questions to answer: Which account receives client payments? Where is tax money held? How does money reach the household? Common pitfall: paying personal costs from the business account, which turns every month-end into detective work. -->

Use a dedicated account for the business. IRS Publication 583 advises
keeping the business account separate from the personal account and
using it only for business purposes; most tax authorities give
similar advice. Then add a second account just for tax money, so that
it is never spent by mistake.

```mermaid
flowchart LR
    C[Client payments] --> B[Business account]
    B --> T[Tax reserve account]
    B --> E[Business expenses]
    B --> O[Owner pay]
    O --> H[Household budget account]
    T --> G[Tax authority payments]
```

| Account | Purpose | Institution | Who can use it | Notes |
|---|---|---|---|---|
| [Business current account] | All client receipts and business payments | [Bank] | [Owner] | [No personal spending] |
| [Tax reserve savings account] | Money set aside for tax and contributions | [Bank] | [Owner] | [Only transfers in, and payments to the tax authority out] |
| [Business card] | Business purchases only | [Issuer] | [Owner] | [Paid in full monthly from the business account] |
| [Payment platform balance] | Client payments by card or platform | [Provider] | [Owner] | [Sweep to business account weekly] |
| Business account *(Example)* | Receipts and expenses | [Bank] | Alex | Opened 2025 |
| Tax reserve *(Example)* | Tax set-aside | [Bank] | Alex | Interest-bearing savings |

Rules for mixed-use costs: when something is used both for business
and privately (a phone, a home internet line, a car), record only the
business share as a business expense and write down how the share was
worked out. Keep the method the same all year.

| Mixed-use item | Total monthly cost | Business share | Basis for the share | Business amount |
|---|---|---|---|---|
| [Item] | [Amount] | [%] | [How measured] | [Amount] |
| Mobile phone *(Example)* | 80 | 40% | Call and data log for two sample weeks | 32 |

## 3. Chart of accounts

<!-- Guidance: A chart of accounts is the list of categories every transaction is sorted into. Keep it short and stable. Questions to answer: Do the expense categories match the lines on your tax return? Common pitfall: creating a new category for every unusual purchase, which makes year-on-year comparison impossible. -->

Match the expense categories to the categories your tax return or your
accountant uses; this saves work at year end. The codes below are an
*Example* structure; any consistent numbering works.

| Code | Account | Type | Use for |
|---|---|---|---|
| 1000 | Business current account | Asset | Bank balance |
| 1010 | Tax reserve account | Asset | Tax money set aside |
| 1100 | Amounts owed by clients | Asset | Unpaid invoices (accrual basis only) |
| 2000 | Business card | Liability | Card balance not yet paid |
| 2100 | Sales tax or VAT owed | Liability | Tax collected for the authority, if registered |
| 3000 | Owner money in | Equity | Personal money put into the business |
| 3100 | Owner pay (drawings) | Equity | Money taken out for the household |
| 4000 | Service income | Income | Fees for work |
| 4100 | Reimbursed costs | Income | Costs re-charged to clients |
| 5000 | Software and subscriptions | Expense | Design tools, cloud storage, accounting software |
| 5100 | Equipment | Expense | Computers and devices (check whether large items must be spread over several years) |
| 5200 | Workspace | Expense | Coworking, business share of home office where allowed |
| 5300 | Travel | Expense | Business trips and client visits |
| 5400 | Professional fees | Expense | Accountant, lawyer |
| 5500 | Marketing | Expense | Website, portfolio platform, advertising |
| 5600 | Bank and payment fees | Expense | Account fees, card processing |
| 5700 | Phone and internet, business share | Expense | Business share only |
| 5800 | Training | Expense | Courses related to the current business |
| 5900 | Business insurance | Expense | Professional liability, equipment cover |
| 6000 | Stock content and supplies | Expense | Stock images, fonts, printing |

Large purchases such as a computer may have to be spread over several
years (depreciation) instead of being expensed at once, depending on
local rules and elections. Mark such items in the expense log and ask
your accountant.

## 4. Income and invoice log

<!-- Guidance: Record every invoice when it is issued and update its status when paid. Questions to answer: Which invoices are overdue? Does every receipt in the bank match an invoice? Common pitfall: issuing invoices with gaps or duplicate numbers; use one continuous sequence. -->

Create invoices with Invoice (`business/invoice`) and log each one
here. Use one continuous numbering sequence (INV-YYYY-NNN). On a cash
basis, income counts in the month the money arrives; on an accrual
basis, in the month the invoice is issued.

| Invoice no. | Client | Issued | Due | Amount | Status | Paid on | Bank reference |
|---|---|---|---|---|---|---|---|
| INV-YYYY-NNN | [Client] | YYYY-MM-DD | YYYY-MM-DD | [Amount] | [Draft / Sent / Paid / Overdue / Written off] | YYYY-MM-DD | [Reference] |
| INV-2026-041 *(Example)* | Brightwell Studio | 2026-10-02 | 2026-11-01 | 1,500 | Paid | 2026-10-20 | BW-1020 |
| INV-2026-042 *(Example)* | Northpine Press | 2026-10-06 | 2026-10-20 | 1,200 | Paid | 2026-10-21 | NP-7781 |
| INV-2026-043 *(Example)* | Oriel Health Clinic | 2026-10-14 | 2026-11-13 | 2,000 | Sent | | |
| INV-2026-044 *(Example)* | Brightwell Studio | 2026-10-24 | 2026-11-23 | 800 | Sent | | |

Monthly income summary:

| Measure | Amount |
|---|---|
| Invoiced this month (accrual view) | [Sum] |
| Received this month (cash view) | [Sum] |
| Outstanding at month end | [Sum] |
| Of which overdue | [Sum] |
| Invoiced in October *(Example)* | 1,500 + 1,200 + 2,000 + 800 = 5,500 |
| Received in October *(Example)* | 1,500 + 1,200 = 2,700 |
| Outstanding at 2026-10-31 *(Example)* | 2,000 + 800 = 2,800 |
| Overdue *(Example)* | 0 |

Follow-up rule for unpaid invoices: send a friendly reminder on the
due date, a second reminder 7 days later, and a call or formal notice
at 21 days. Record each contact.

| Invoice no. | Reminder 1 | Reminder 2 | Escalation | Outcome |
|---|---|---|---|---|
| [INV-YYYY-NNN] | YYYY-MM-DD | YYYY-MM-DD | YYYY-MM-DD | [Paid / Payment plan / Written off] |

## 5. Expense and receipt log

<!-- Guidance: Every business expense needs evidence: a receipt or invoice showing date, supplier, amount and what was bought. Questions to answer: Is there a receipt for every line? Is the business purpose clear? Common pitfall: losing small receipts; photograph them on the day. -->

Photograph or download every receipt on the day of purchase and name
the file with the expense ID (for example `EXP-2026-101.pdf`). Write the
business purpose in a few words; months later it will not be obvious.

| Expense ID | Date | Supplier | Description and business purpose | Account code | Amount | Paid from | Receipt file |
|---|---|---|---|---|---|---|---|
| EXP-YYYY-NNN | YYYY-MM-DD | [Supplier] | [What and why] | [Code] | [Amount] | [Account] | [File name] |
| EXP-2026-101 *(Example)* | 2026-10-01 | [Design software vendor] | Design software, monthly plan | 5000 | 60 | Business card | EXP-2026-101.pdf |
| EXP-2026-102 *(Example)* | 2026-10-01 | [Coworking space] | Desk membership, October | 5200 | 250 | Business account | EXP-2026-102.pdf |
| EXP-2026-103 *(Example)* | 2026-10-09 | [Stock image site] | Images for Oriel Health Clinic project | 6000 | 45 | Business card | EXP-2026-103.pdf |
| EXP-2026-104 *(Example)* | 2026-10-15 | [Office supplier] | Laptop stand | 5100 | 35 | Business card | EXP-2026-104.pdf |
| EXP-2026-105 *(Example)* | 2026-10-31 | [Bank] | Account fee | 5600 | 10 | Business account | Statement |
| EXP-2026-106 *(Example)* | 2026-10-28 | [Mobile carrier] | Phone, 40% business share of 80 | 5700 | 32 | Personal account, repaid from business | EXP-2026-106.pdf |
| **Total *(Example)*** | | | | | **432** | | |

Expense check for October: 60 + 250 + 45 + 35 + 10 + 32 = 432.

Category totals for the month feed the profit figure in section 6:

| Account code | Account | This month | Year to date |
|---|---|---|---|
| [Code] | [Account] | [Amount] | [Amount] |
| 5000 *(Example)* | Software and subscriptions | 60 | [Amount] |
| 5200 *(Example)* | Workspace | 250 | [Amount] |

## 6. Tax set-aside rule

<!-- Guidance: Decide a fixed percentage to move to the tax reserve every time money arrives, then check it against an estimate each quarter. Questions to answer: What share of profit went to tax and contributions last year? Are advance or estimated payments required? Common pitfall: spending the whole receipt and facing a large bill with no cash. -->

Self-employed people usually pay tax later than the money arrives, and
sometimes in advance instalments. A simple rule protects the
household: move a fixed percentage of every receipt into the tax
reserve account on the day it arrives.

Two ways to set the rule:

1. **Percentage of receipts** (simple, more cautious): with rate $r$
   and receipts $R$, the transfer is $r \times R$.
2. **Percentage of profit** (closer to the real tax): with receipts
   $R$ and allowable expenses $E$, the set-aside $S$ is:

$$
S = r \times (R - E)
$$

Set $r$ from last year's actual tax and contributions divided by last
year's profit, plus a margin if income is growing. Ask an accountant
or use the tax authority's own estimator for the first year. The rate
is a household planning rule; it is not a tax calculation.

| Item | Value |
|---|---|
| Set-aside method | [Percentage of receipts / Percentage of profit] |
| Rate $r$ | [%] |
| Basis for the rate | [Last year's tax and contributions / Accountant's estimate / Tax authority estimator] |
| Transfer timing | [Same day as receipt / Weekly] |
| Quarterly check owner | [@owner] |
| Method *(Example)* | 30% of every receipt, checked quarterly against a profit estimate |

Worked check for October *(Example)*:

| Measure | Amount |
|---|---|
| Receipts $R$ | 2,700 |
| Expenses $E$ | 432 |
| Profit $R - E$ | 2,268 |
| Set-aside at 30% of receipts | 0.30 x 2,700 = 810 |
| Profit-based estimate at 30% | 0.30 x 2,268 = 680.40 |
| Cushion held in the reserve | 810 - 680.40 = 129.60 |

The difference is a cushion, not lost money. At each quarterly check,
compare the reserve balance with an estimate of tax owed so far; move
any clear excess back to the business account only after the year's
return is filed or the accountant agrees.

Advance payments in the US example: the IRS says individuals generally
pay estimated tax if they expect to owe 1,000 USD or more when the
return is filed, using Form 1040-ES, in four periods with due dates of
April 15, June 15, September 15 and January 15 of the following year
(moved to the next business day if the date falls on a weekend or
legal holiday). Other countries use different instalment systems; see
section 13 and check local rules.

## 7. Owner pay

<!-- Guidance: Pay yourself a regular, predictable amount from the business to the household, rather than taking money whenever it is needed. Questions to answer: What amount can the business sustain in its lowest months? Common pitfall: taking out every surplus, leaving no business buffer for slow months. -->

For a sole trader, owner pay (often called drawings) is not a business
expense; it is the owner moving profit into the household. It does not
reduce taxable profit. A regular amount makes the household budget
stable, which matters most when income is irregular; see the irregular
income plan in Budget (`personal/budget`).

| Item | Value |
|---|---|
| Owner pay amount | [Amount] |
| Frequency and date | [Monthly on day N] |
| Business cash floor (minimum balance kept) | [Amount] |
| Rule when balance is below the floor | [Skip or reduce owner pay; never borrow from the tax reserve] |
| Rule when balance is well above the floor | [Pay a top-up once a quarter] |
| Owner pay *(Example)* | 1,000 monthly, in week 2 of each month |
| Cash floor *(Example)* | 4,000 |

| Date | Amount | Business balance after | Note |
|---|---|---|---|
| YYYY-MM-DD | [Amount] | [Amount] | [Regular / Top-up / Reduced] |
| 2026-10-09 *(Example)* | 1,000 | 4,152 | Regular; above the 4,000 floor |

Check of the balance *(Example)*: working back from the reconciled book balance of 6,000 at 2026-10-31 (section 8), the later movements were receipts of 2,700 in, tax reserve transfers of 810 out, the 10 bank fee and the 32 phone repayment, so the balance after owner pay was 6,000 - 2,700 + 810 + 10 + 32 = 4,152. The 140 of October business-card spending (EXP-2026-101, -103, -104) is repaid from the business account in November.

## 8. Bank reconciliation

<!-- Guidance: Reconciliation proves the records match the bank. Questions to answer: Does the bank balance equal the book balance once timing differences are explained? Common pitfall: forcing a match with an unexplained "adjustment" line. -->

At month end, compare each business account balance in your records
with the bank statement. Differences should only be timing items (a
payment sent but not yet cleared, a deposit in transit) or errors to
correct. Never close the month with an unexplained difference.

| Account | Statement date | Bank statement balance | Items in transit (+/-) | Adjusted bank balance | Book balance | Difference | Explained? |
|---|---|---|---|---|---|---|---|
| [Account] | YYYY-MM-DD | [Amount] | [Amount, description] | [Amount] | [Amount] | [0] | [Yes / No: action] |
| Business account *(Example)* | 2026-10-31 | 6,032 | -32 (phone repayment sent 2026-10-31, clears in November) | 6,000 | 6,000 | 0 | Yes |

Also reconcile the business card and any payment platform balance
monthly, and confirm every tax reserve transfer appears in the reserve
account.

## 9. Monthly close checklist

<!-- Guidance: Do the close at the same time each month, ideally within the first five working days. Questions to answer: Is every transaction categorised and supported? Are all accounts reconciled? Common pitfall: closing only when a tax deadline is near, which turns an hour a month into days of catch-up. -->

| ID | Task | Done | Date | Notes |
|---|---|---|---|---|
| CLOSE-01 | Download statements for all business accounts, cards and payment platforms | [ ] | YYYY-MM-DD | |
| CLOSE-02 | Record every receipt in the income log and match it to an invoice | [ ] | YYYY-MM-DD | |
| CLOSE-03 | Record every payment in the expense log with an account code | [ ] | YYYY-MM-DD | |
| CLOSE-04 | Check that every expense line has a receipt file and a business purpose | [ ] | YYYY-MM-DD | |
| CLOSE-05 | Move any personal spending paid from the business to owner pay, and record any business cost paid personally as owner money in | [ ] | YYYY-MM-DD | |
| CLOSE-06 | Confirm tax reserve transfers match the set-aside rule | [ ] | YYYY-MM-DD | |
| CLOSE-07 | Reconcile each account (section 8) | [ ] | YYYY-MM-DD | |
| CLOSE-08 | Review overdue invoices and send reminders | [ ] | YYYY-MM-DD | |
| CLOSE-09 | Update the 13-week cash flow forecast (section 10) | [ ] | YYYY-MM-DD | |
| CLOSE-10 | Record month and year-to-date income, expenses and profit | [ ] | YYYY-MM-DD | |
| CLOSE-11 | Back up the records to a second location | [ ] | YYYY-MM-DD | |
| CLOSE-12 | Sign off the month in the Approvals table | [ ] | YYYY-MM-DD | |

Month summary:

| Month | Receipts | Expenses | Profit | Tax reserve transfers | Owner pay | Closed on |
|---|---|---|---|---|---|---|
| YYYY-MM | [Amount] | [Amount] | [Amount] | [Amount] | [Amount] | YYYY-MM-DD |
| 2026-10 *(Example)* | 2,700 | 432 | 2,268 | 810 | 1,000 | 2026-11-03 |

## 10. 13-week cash flow forecast

<!-- Guidance: A 13-week forecast shows, week by week for about one quarter, whether the business account will stay above the cash floor. Questions to answer: When do client payments realistically arrive? Which weeks have large payments? Common pitfall: forecasting receipts on invoice due dates when clients usually pay late; use each client's actual habits. -->

Roll the forecast forward every month: drop the weeks that have passed
and add new weeks at the end. Base receipts on when each client
usually pays, not on the due date alone. All amounts below are in the
reporting currency; tax transfers follow the 30% of receipts rule. The
example opens with the reconciled book balance at 2026-10-31 (section 8).

| Week | Week starting | Opening balance | Receipts | Operating payments | Tax reserve transfer | Owner pay | Net change | Closing balance |
|---|---|---|---|---|---|---|---|---|
| [1] | YYYY-MM-DD | [Amount] | [Amount] | [Amount] | [Amount] | [Amount] | [Amount] | [Amount] |
| 1 *(Example)* | 2026-11-02 | 6,000 | 0 | 310 | 0 | 0 | -310 | 5,690 |
| 2 *(Example)* | 2026-11-09 | 5,690 | 1,500 | 0 | 450 | 1,000 | 50 | 5,740 |
| 3 *(Example)* | 2026-11-16 | 5,740 | 0 | 0 | 0 | 0 | 0 | 5,740 |
| 4 *(Example)* | 2026-11-23 | 5,740 | 1,200 | 0 | 360 | 0 | 840 | 6,580 |
| 5 *(Example)* | 2026-11-30 | 6,580 | 0 | 310 | 0 | 0 | -310 | 6,270 |
| 6 *(Example)* | 2026-12-07 | 6,270 | 2,000 | 0 | 600 | 1,000 | 400 | 6,670 |
| 7 *(Example)* | 2026-12-14 | 6,670 | 0 | 90 | 0 | 0 | -90 | 6,580 |
| 8 *(Example)* | 2026-12-21 | 6,580 | 800 | 0 | 240 | 0 | 560 | 7,140 |
| 9 *(Example)* | 2026-12-28 | 7,140 | 1,500 | 310 | 450 | 0 | 740 | 7,880 |
| 10 *(Example)* | 2027-01-04 | 7,880 | 0 | 0 | 0 | 1,000 | -1,000 | 6,880 |
| 11 *(Example)* | 2027-01-11 | 6,880 | 0 | 0 | 0 | 0 | 0 | 6,880 |
| 12 *(Example)* | 2027-01-18 | 6,880 | 2,200 | 150 | 660 | 0 | 1,390 | 8,270 |
| 13 *(Example)* | 2027-01-25 | 8,270 | 0 | 0 | 0 | 0 | 0 | 8,270 |
| **Total *(Example)*** | | **6,000** | **9,200** | **1,170** | **2,760** | **3,000** | **2,270** | **8,270** |

Checks for the example: 9,200 - 1,170 - 2,760 - 3,000 = 2,270, and
6,000 + 2,270 = 8,270. Tax transfers equal 30% of receipts: 0.30 x
9,200 = 2,760. The lowest closing balance is 5,690 in week 1, above the
cash floor of 4,000. Note that the US estimated tax payment due on
January 15 is paid from the tax reserve account, not from this
business account, so it does not appear here.

| Assumption | Value |
|---|---|
| Client payment habits | [Client: usually pays N days after due date] |
| Recurring operating payments | [Software monthly, workspace monthly] |
| Known one-off payments | [Insurance renewal, equipment] |
| Cash floor | [Amount] |
| Action if a week falls below the floor | [Delay owner pay top-up, chase invoices, defer purchases] |

## 11. Quarterly and year-end tasks

<!-- Guidance: List every filing and payment date for the year in one place. Questions to answer: Which returns, instalments and registrations apply? What does the accountant need and by when? Common pitfall: discovering a filing obligation after its deadline. -->

| ID | Task | Frequency | Due date | Owner | Done |
|---|---|---|---|---|---|
| CAL-001 | [Advance or estimated tax payment] | [Quarterly] | YYYY-MM-DD | [@owner] | [ ] |
| CAL-002 | [Sales tax or VAT return, if registered] | [Monthly / Quarterly] | YYYY-MM-DD | [@owner] | [ ] |
| CAL-003 | [Annual income tax return] | Yearly | YYYY-MM-DD | [@owner] | [ ] |
| CAL-004 | Review set-aside rate against profit to date | Quarterly | YYYY-MM-DD | [@owner] | [ ] |
| CAL-005 | Review prices and payment terms | Yearly | YYYY-MM-DD | [@owner] | [ ] |
| CAL-001 *(Example)* | US estimated tax, fourth period (September to December) | Quarterly | 2027-01-15 | Alex | [ ] |

Year-end pack for the accountant (or for filing yourself):

| ID | Item | Included | Notes |
|---|---|---|---|
| YE-01 | Income log for the year with all invoice numbers accounted for | [ ] | |
| YE-02 | Expense log with category totals and receipt files | [ ] | |
| YE-03 | Bank, card and platform statements for every month | [ ] | |
| YE-04 | Reconciliations for the last month of the year | [ ] | |
| YE-05 | List of unpaid invoices and unpaid bills at year end | [ ] | |
| YE-06 | Equipment and other large purchases, with dates and receipts | [ ] | |
| YE-07 | Mixed-use calculations (phone, internet, home office, vehicle log) | [ ] | |
| YE-08 | Tax reserve statement and advance payments made | [ ] | |
| YE-09 | Payment platform annual summaries or information returns received | [ ] | |
| YE-10 | Owner pay and owner money in totals | [ ] | |
| YE-11 | Notes on anything unusual (bad debts, refunds, grants) | [ ] | |

Personal tax documents that sit outside the business (salary slips,
interest statements, pension contributions) belong in Tax Document
Checklist (`personal/tax-document-checklist`).

## 12. Record retention and storage

<!-- Guidance: Decide how long records are kept and where. Questions to answer: What is the legal minimum in your country? Where is the backup? Common pitfall: keeping receipts only in an email inbox or a single laptop. -->

Keep records at least as long as the tax authority can review the
return, and longer for assets you still own. Two public examples, as
published in October 2026:

- **United States**: IRS Publication 583 (revised December 2024) says to
  keep records until the period of limitations for the return runs
  out. That is generally 3 years, 6 years if more than 25% of gross
  income was left off the return, 7 years for claims about worthless
  securities or bad debt deductions, and without limit for fraudulent
  returns or years with no return filed. Employment tax records are
  kept at least 4 years. Records for property are kept until the
  period of limitations expires for the year the property is disposed
  of.
- **United Kingdom**: HMRC guidance says sole traders must keep records
  for at least 5 years after the 31 January submission deadline of the
  relevant tax year.

Check the rule in your own country; some require 10 years for business
records.

| Item | Our rule |
|---|---|
| Retention period | [N years after the filing deadline] |
| Main storage | [Encrypted folder on a local device] |
| Backup | [Second encrypted copy, updated monthly] |
| Paper receipts | [Scan, then keep originals if local law requires] |
| File naming | [EXP-YYYY-NNN, INV-YYYY-NNN, statements as ACCOUNT-YYYY-MM] |
| Disposal | [Secure deletion after the retention period] |

These records contain client names, bank details and tax numbers.
Store them encrypted, never send tax numbers or bank details by
unencrypted email, and keep passwords in a password manager rather
than in this file.

## 13. Local equivalents

<!-- Guidance: Find the local names of the forms and schemes that apply, then read the official guidance. Common pitfall: following advice written for another country. -->

Names only, as of 2026-10; examples, not exhaustive, not advice. Check
local rules with the official tax authority.

| Country | Self-employed income reporting | Advance or periodic payments | Notes |
|---|---|---|---|
| United States | Schedule C (Form 1040), Schedule SE | Form 1040-ES estimated tax, four periods | State rules vary |
| United Kingdom | Self Assessment tax return | Payments on account; Making Tax Digital for Income Tax quarterly updates | HMRC lists MTD start dates by qualifying income: over GBP 50,000 from 6 April 2026, over GBP 30,000 from 6 April 2027, over GBP 20,000 from 6 April 2028 |
| Canada | Form T2125 with the personal return | Instalments where required | Check GST/HST registration |
| Australia | Individual return with business schedule, ABN | PAYG instalments; BAS if registered for GST | |
| Germany | Einnahmenüberschussrechnung (Anlage EÜR) | Advance tax payments set by the tax office | Small business VAT rules exist |
| France | Micro-entrepreneur declarations or regular regime | Periodic contributions declarations | |
| Japan | Final tax return (kakutei shinkoku), blue return option | Prepayments where required | |
| Vietnam | Declarations for household and individual businesses | Periodic declarations | Check current guidance from the tax authority |

## 14. Glossary

<!-- Guidance: Define each term once in plain words so that anyone helping with the books reads it the same way. -->

| Term | Meaning |
|---|---|
| Bookkeeping | Recording every business transaction with evidence, in categories |
| Cash basis | Counting income when received and expenses when paid |
| Accrual basis | Counting income when earned and expenses when incurred, whatever the payment date |
| Chart of accounts | The fixed list of categories used to sort transactions |
| Drawings (owner pay) | Money a sole trader takes from the business for personal use; not a business expense |
| Reconciliation | Checking that records agree with the bank statement and explaining any difference |
| Tax reserve | A separate account holding money set aside for tax |
| Estimated tax, instalments | Tax paid in advance during the year instead of all at once |
| Depreciation | Spreading the cost of a long-lived asset over several years |
| Mixed-use cost | A cost used partly for business and partly privately |
| Cash floor | The minimum business balance kept to absorb slow weeks |
| 13-week forecast | A week-by-week cash projection for about one quarter |

## 15. References

<!-- Guidance: Keep the official pages you used and the date you checked them. Tax pages change every year. -->

- US Internal Revenue Service, Publication 583 (12/2024), "Starting a
  Business and Keeping Records" (US federal work, public domain).
  https://www.irs.gov/publications/p583
- US Internal Revenue Service, "Estimated taxes" and "Estimated tax"
  FAQs (Form 1040-ES, payment periods).
  https://www.irs.gov/businesses/small-businesses-self-employed/estimated-taxes
- US Internal Revenue Service, "Self-employment tax (Social Security
  and Medicare taxes)".
  https://www.irs.gov/businesses/small-businesses-self-employed/self-employment-tax-social-security-and-medicare-taxes
- HM Revenue and Customs, "Business records if you're self-employed:
  how long to keep your records" (gov.uk, Open Government Licence
  v3.0). https://www.gov.uk/self-employed-records/how-long-to-keep-your-records
- HM Revenue and Customs, "Check if you're eligible for Making Tax
  Digital for Income Tax" (gov.uk, Open Government Licence v3.0).
  https://www.gov.uk/guidance/check-if-youre-eligible-for-making-tax-digital-for-income-tax
- Related templates: Invoice (`business/invoice`), Budget
  (`personal/budget`), Tax Document Checklist
  (`personal/tax-document-checklist`), Emergency Fund Plan
  (`personal/emergency-fund-plan`).

## Standard and licence note

Based on public tax authority guidance: US IRS Publication 583
(revised December 2024) and IRS pages on estimated and self-employment
tax (US federal works, public domain), and HMRC guidance on
gov.uk (Open Government Licence v3.0). Facts are cited with their
source; no worksheet, form or text is reproduced, and the structure
and wording are original, written for this collection. Alex Rivera
and the clients named are fictional. This is a document format, not
financial, tax, legal or accounting advice. Check the current official
guidance and your local law before use. Template licence: MIT.