Side Income Tracker
Manage your side hustle finances. Track multiple income streams and expenses to see your real profitability and prepare for tax time.
Quick Use Samples
Income
Expenses
Summary
Monthly Profitability Trends
Most Profitable Month
2023-10 ($1,935.00)
This was your month with the highest net profit. Analyze what went right and replicate it!
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What is a Side Income Tracker?
A Side Income Tracker is a tool to help you manage the finances of your side hustle or freelance work. It allows you to log all your different sources of income and track your business-related expenses, giving you a clear, real-time view of your profitability and helping you prepare for your tax obligations.
Behind the Formula
The tracker operates like a simplified business ledger. It calculates your total gross income by summing all your income entries. It then subtracts the sum of all your expense entries to determine your net profit or loss. Based on this profit, it can estimate your tax liability by applying a user-defined marginal tax rate.
Expert Insights
- The golden rule for side income is to keep it separate. Open a separate bank account for all your business income and expenses. This makes tracking your finances and tax-time infinitely easier.
- As a sole trader, you can claim a tax deduction for any legitimate expense that is directly related to earning your income. Meticulous record-keeping of expenses is the key to minimizing your tax bill.
- If you expect your annual turnover from your side hustle to be $75,000 or more, you are legally required to register for GST. This adds a layer of complexity, and it's a good idea to speak to an accountant.
Actionable Tips
- Use the tracker to log every single income payment and business expense as it happens. Don't let it pile up – a few minutes each week is all it takes to stay on top of it.
- Set a rule to automatically transfer a percentage (e.g., 30%) of every payment you receive into a separate savings account. This is your 'tax and super' fund, ensuring you're never caught short.
- Review your tracker monthly to see which income streams are most profitable and which expenses are highest. This can help you make smarter business decisions about where to focus your time and effort.
Real-World Examples
The Uber Driver
An Uber driver uses the tracker to log their weekly earnings. They also log all their expenses: fuel, insurance, car maintenance, and phone data. At the end of the month, the tracker shows them their true profit after costs.
The Etsy Seller
Someone selling crafts on Etsy tracks their sales revenue. They meticulously log the cost of materials, postage, and Etsy fees as expenses. This allows them to see their profit margin on each item and price their products effectively.
The Freelance Writer
A writer tracks payments from several different clients. They claim expenses like their work-related internet bill, professional subscriptions, and a portion of their home office running costs. The tracker helps them compile all the information needed for their tax return.
Glossary of Terms
Sole Trader
An individual running a business. As a sole trader, you are personally responsible for the debts of your business, and your business income is taxed at your individual marginal tax rate.
Deductible Expense
A cost incurred in the course of running your business that can be subtracted from your gross income to reduce your taxable income.
GST (Goods and Services Tax)
A 10% tax on most goods and services sold in Australia. Businesses with an annual turnover of $75,000 or more must register for and charge GST.