If you’re a gig worker, you are your own boss. You enjoy the flexibility when it comes to selecting the type of jobs, as well as the work schedule. Such perks could easily make many corporate sector employees jealous. However, when it comes to a regular paycheck or pay stub, it is the gig workers who are at the losing end.
Not having a regular income or pay stub is not a problem always, but in certain scenarios, it may be a setback, such as when you are applying for a loan and want to show your income proof. You can, however, easily overcome this issue if you are keeping track of all your income.
Now, many of you might be thinking that keeping track of the gig income is a simple thing as one can always check the balance on the app they work for. Yes, checking the balance is always an option, but when you work for more than one platform or client, it could get very challenging to keep track of all things.
This, however, doesn’t mean that those working for more than one platform or client can’t keep a track of their income. They can also easily keep track of all their gig income, and all they need to do is follow the below mentioned ways. These ways are even useful for those who work for just one or two platforms.
Maintain a Schedule
Maintaining a schedule means keeping a running list of the service you are providing. For this, you can use a physical notebook, or any app, such as Google calendar. Along with the list of services, you also need to record to whom you’re providing the service. Keeping such records could also come in handy when you are filing taxes.
Record the Hours Worked
This is the most important thing that any gig worker that uses a remote business model should follow. You must make a habit of recording the number of hours you worked on a daily basis. Additionally, you must also record the start time, end time, and breaks (if any).
Moreover, you should maintain these records even if the platform you’re working for keeps all such records. You never know when your records could come in handy. Again, you can use software and apps, such as QuickBooks, FreshBooks and more, to assist you in keeping the records.
Verify your Paychecks
Once you receive a payment for your work, make sure to cross-check it with the records you are maintaining. You must verify the amount to ensure that it is as per your expectations. After verifying the amount, you should record the paycheck information in the books you’re maintaining.
Don’t forget to record the dates, as well as the contact info of the job you’re getting paid for. This would help you to keep track of your total income, as well as evaluate your performance by comparing it with previous months’ or years’ income.
Save Receipts of Expenses
Saving receipts of the expenses might seem unwanted, but it could help you to bring down your tax liability. Moreover, it would also help you find (or track) your net income from a job.
Maintain Profit and Loss Statements
You may not have a regular paycheck or pay stub, but that doesn’t mean you can’t have a Profit and Loss Statement. In fact, preparing a Profit and Loss Statement is more important for you as it could serve as a proof of your income. This Profit and Loss Statement will tell your actual financial standing or performance in a period.
Making a Profit and Loss Statement is also easy. You have all the records (or data from above) you need. If you don’t want to make it yourself, you can use the software (both free and paid) available online.
Use Pay Stub Generator
You may not get an official pay stub for the work you do, but that doesn’t mean you can’t have one. Since you are the boss, you can always create one for yourself. Plenty of pay stubs generators are available online (both free and paid). Generating a pay stub will help you to create a record of your income.
Tax Returns
Filing a tax return is also a way to keep track of your income. You can always refer to your most recent tax return to know your income. A point to note is that your tax return won’t be accurate unless you have all the records of your income.
So, these are the ways that could help you to track your gig income. I agree that resorting to these ways will require some time from your busy schedule. But you need to understand that the benefits you will get by following these ways will be worth every second you devote.