Managing your money when you are self-employed

When you work for yourself, you manage many parts of your business. You look after clients, track your time, market your services, and complete the work. It is also important to manage your money well and set clear financial habits from the start.

Know what you can claim

Make sure you understand which expenses you can claim for tax and which you cannot. This helps you keep the right records and avoid confusion later. Because every contractor works differently, the rules can vary between industries and roles.

If you are unsure, speak with us early. We can help you understand your deductible expenses and plan for any larger business costs.

Set up a reliable system

Setting up a simple and reliable system now will save you time later. Keeping your expenses recorded and your invoices organised gives you a clear picture of your cash flow and helps you run your business smoothly.

Choose a system or software that suits how you work. If you track time on projects, consider using a platform that links your time entries directly to your invoicing.

Put money aside for tax

When you are self employed, you are responsible for managing your tax. Keep a portion of your income aside in a separate account or consider setting up voluntary instalments with Inland Revenue.

Many contractors also pay themselves a regular wage. This helps with budgeting and stops you from viewing all business income as extra spending money. It is also wise to save a little extra for holidays or quieter periods.

If you need support, our team can help you set up systems that make managing your tax and expenses much easier. Feel free to contact us for guidance.