How to Set Up Bookkeeping the Right Way as a Freelancer in Redlands
Running a service business in Redlands or anywhere in the Inland Empire? Clean books make tax time painless and help you price your work with confidence. Here’s the simple setup I walk new freelancers through when they’re just getting started on QuickBooks Online.
Important: This is a quick, general guide. It won’t cover every case. If your situation is unique or growing fast, book a consult at the end and I’ll tailor it to you.
Step 1: Keep money clean from day one
Open one business checking account and one business credit or debit card. Run every business deposit and expense through those two. When personal spending never touches your business accounts, your books are cleaner and your deductions are easier to prove if the IRS ever asks. To be honest, this isn’t even optional for most businesses. Not having separation of finances can lead to massive headaches and big unexpected bills from accountants or the IRS.
A practical example: a Redlands photographer routes Stripe deposits to the business checking, pays for lenses and editing software on the business card, and never swipes a personal card for shoots in Riverside or Rancho Cucamonga. At month’s end, her feed is tidy and reconciling takes minutes.
Step 2: Set up QuickBooks Online the way freelancers actually use it
I work with QuickBooks Online only because bank feeds, rules, and mobile receipt capture save you hours.
Connect bank feeds and turn on receipt capture in the QBO mobile app. Digital copies are fine as long as they’re legible and accessible.
Build a simple Chart of Accounts that fits service work in the Inland Empire:
Income: Service income, Reimbursed expenses
Cost of work: Subcontractors, Merchant fees
Operating expenses: Software, Advertising, Supplies, Vehicle, Phone, Client meals, Dues and subscriptions
Start with three bank rules:
Your payment processor deposits → Service income
Recurring software vendors → Software expense
Fuel purchases → Vehicle expense
That’s enough structure to stay organized without turning your books into a science project. You’ll need more down the line but this is a starting point.
Step 3: A 20-minute weekly routine
Block a short slot each week. You’ll:
Pull in new transactions. Most will auto-categorize from your rules.
Attach key receipts from your phone as you go. Digital is fine.
Log business mileage for shoots, client visits, and service calls around Redlands, Loma Linda, Yucaipa, Riverside, or Rancho. The 2025 standard mileage rate is 70 cents per mile.
Glance at your Profit and Loss and open invoices so nothing slips.
Tip from the field: many Redlands solopreneurs set a Friday “money time” calendar block. Coffee, reconcile, done.
Step 4: Taxes to think about without getting a headache
Set aside a slice of each deposit for taxes. The exact percent depends on your situation, but making small, steady transfers keeps quarterly estimates from stinging.
If you pay independent contractors, collect a Form W-9 before the first payment and track totals. For 2025, businesses generally issue Form 1099-NEC if they pay a contractor 600 dollars or more during the year. The IRS has announced that payments after Dec 31, 2025 will generally use a 2,000 dollar threshold.
Sales tax in California. Most services are not taxable. If you also sell tangible items like merch or printed albums, sales tax rules apply. When in doubt, check before you sell.
Cash vs accrual. The cash method of accounting usually fits freelancers. The IRS “small business taxpayer” gross-receipts test is indexed for inflation and is far above what most local freelancers earn. For tax years beginning in 2024 it was 30 million dollars. If you’re approaching big numbers or adding complexity, let’s talk.
Step 5: The monthly check-in
Once a month, do a light close:
Reconcile your business bank and card.
Clear any uncategorized transactions.
Review a simple dashboard: income this month, top 5 expenses, cash on hand.
Confirm your tax reserve looks healthy.
If you invoice, send gentle reminders before month-end.
Step 6: Signs you’re outgrowing the “simple setup”
Multiple contractors and you want job costing by client or by location, like Riverside vs Rancho.
Thinking about an S-Corp or adding payroll.
Selling both services and products, or carrying inventory.
This is where a short working session pays off. We’ll layer in classes, projects, product/service mixes, and reporting that actually answers your questions.
Quick checklist for Redlands freelancers
Business bank and card opened
QBO connected with receipt capture on
Chart of Accounts trimmed to service work
Three (or so) starter bank rules in place
Weekly 20-minute routine on the calendar
Tax reserve method chosen
W-9 process ready for any contractors
Know your 2025 mileage rate and estimate dates, don’t forget to record all business mileage
Want this done right, fast, and local to Redlands
If you want clean books that make tax time boring in the best way, book a consult at ThriveWellCPA.com. Prefer to read more first? Keep exploring our guides for Inland Empire freelancers and service businesses.
