Finances: Financial Tools for Budget, Invoice & Tax Support

You Don’t Have to Love Numbers to Master Them.

Many writers love the creative side of storytelling, but get overwhelmed when money enters the picture. The truth is—handling your writing income with confidence is one of the most empowering steps in your journey. Whether you’re freelancing, publishing books, blogging, or offering coaching, it’s time to treat your finances like a professional.

You don’t need to be an accountant. But you do need some simple tools and habits that help you track what comes in, what goes out, and what to do when tax time rolls around.

Why This Stage Matters for Writers

Even if writing is just a side hustle right now, your time, energy, and creativity have value.

Organizing your finances will:

• Reduce stress and surprise bills

• Make you more confident when pricing your work

• Help you grow from a side hustle to a sustainable income

• Build long-term stability and planning for the future

You’re not just writing—you’re running a creative business. Let’s treat it that way.

Step-by-Step: Financial Tools for Writers

1. Separate Your Business and Personal Finances

Even if you’re not registered as an LLC or formal business yet, open a separate checking account just for writing.

It helps you:

• Track your income and expenses clearly

• Prepare for taxes more easily

• Look more professional to clients or readers

Banks like Bluevine and Novo offer online business checking accounts with no monthly fees.

2. Create a Simple Budget (That Works for You)

Writers need budgets too!

Your writing budget might include:

• Software (like Canva, Grammarly, or Scrivener)

• Publishing costs (ISBNs, editing, design)

• Marketing (ads, email services, websites)

• Travel or event expenses

Use a spreadsheet or a free tool like YNAB (You Need a Budget) or Goodbudget to track what you plan to spend and what you’ve already spent.

3. Track Every Income Source

Whether you’re selling books, booking clients, or getting affiliate payouts, track it all in one place.

Try this simple setup:

• Column A: Date

• Column B: Description (e.g., “Book sale – Amazon”)

• Column C: Gross Income

• Column D: Fees

• Column E: Net Income

You can use Google Sheets, Excel, or a bookkeeping tool like Wave or QuickBooks.

4. Make Invoicing Easy

If you offer services like coaching, editing, or speaking, you’ll need to send invoices that look clean and professional.

Top invoicing tools:

• Wave – free and beginner-friendly

• Bonsai – great for freelancers

• Square Invoices – lets clients pay with a card

Include your name, logo (if you have one), services rendered, payment method, due date, and thank-you note.

5. Know What You Can Deduct

Tax laws vary by country, but here are some common deductible expenses for writers in the U.S.:

• Website fees and hosting

• Computer and printer

• Software subscriptions

• Home office (a portion of rent or utilities)

• Coaching, conferences, or training

• Mileage for writing-related travel

Keep digital or paper receipts for everything you claim.

6. Start Saving for Taxes Now

If you earn more than $400 in freelance or business income in a year, you may be required to pay self-employment tax. The IRS offers helpful resources that explain what expenses you can legally deduct to reduce your taxable income. I’ll be honest—my first year, I missed out on a lot of potential deductions simply because I didn’t know what counted.

But come tax time, I reviewed the IRS guidelines, took notes, and started keeping better records. Now, I track my expenses more carefully, save receipts, and make sure I’m claiming everything I’m entitled to. It makes a big difference!

Tips:

• Set aside 20–30% of each payment for taxes

• Use a separate “tax savings” account

• Mark quarterly tax deadlines on your calendar

Consider using tools like Keeper Tax or QuickBooks to estimate how much to set aside.

7. Use Financial Templates or Planners

If spreadsheets overwhelm you, look for printable templates made just for writers or solopreneurs. Many are available on Etsy, Notion, or included in our Resources section.

8. Hire Help

I found someone who could help me set up QuickBooks for writers. They gave me a quick overview of where to put items. When I have questions, she can help me, or QuickBooks also has staff you can pay to help. No matter the software, there is someone who will help.

My Financial Learning Curve

When I first started writing and blogging, the financial side was by far the most intimidating part. I had no idea what to charge, how to track income, or where to begin with organizing expenses. But over time, I learned that small steps really do matter. I opened a separate bank account, started saving receipts, made a simple budget, and even filed a Schedule C for the first time. And now? I feel more in control and a whole lot less stressed every time I make a sale.

Honestly, I’m not a numbers person. Can I handle the finances? Yes. Do I enjoy it? Absolutely not. Right now, I’ve got a pile of receipts on my desk from book signings in West Virginia and Ohio just waiting to be entered into my tracking software. It’s not my strong suit—I’ll admit that. But once someone walked me through the process, it finally clicked. It's doable.

My biggest struggle has been consistency. I don’t always keep up with the bookkeeping right after events, which creates extra work later. So I borrowed an idea from my day job: a Travel Expense Report. I created a simple version in Google Docs where I can log expenses right away and attach receipts. Going forward, I will keep a folder for each event or book signing. That way, even if I fall behind, everything is grouped and easier to sort out. I've learned the hard way that procrastination only creates more work.

If this part overwhelms you, know that you can do it. The tools are out there, you just need to find what works for you and start using them. One small step at a time makes all the difference.

The Prompt Corner

The Prompt Corner is to help focus on money, value, and mindset around your writing:

1. What would it look like to take your writing income seriously?

2. Write about a time you felt proud to earn money from your words.

3. What expenses do you need to track or get a better handle on?

4. List five small things you could do this month to feel more financially in control.

5. Describe the writing business you’d love to have five years from now—income, routine, freedom, etc.

   
   

Try one or all—and take one small step to grow your confidence around money.

Free & Paid Tools to Support Your Writing

Here are a few helpful financial tools to make the money side of writing easier:

1. Wave – Free accounting, invoicing, and receipt tracking

2. Goodbudget – Envelope-based budget app

3. QuickBooks Self-Employed – Great for taxes and mileage tracking

4. Keeper Tax – Find deductions automatically for freelancers

Some links may be affiliate links. If you choose to use them, it helps support our website at no extra cost to you. Want more tools? Check out the full list in the Resources tab of our site.

Want more tools? Check out the full list of writing resources on the resource page on our website.

RESOURCES PAGE

Write with Us: Financial Tools for Your Business

You don’t have to be a financial expert to run a writing business—you just need to care enough to get organized. Each receipt you track, each invoice you send, each small savings account you open—it all adds up to freedom.

Next week, we’ll move into Step 11: Connect – Writing Communities, Groups & Events. 

It’s time to build your support system and find your people.

Your writing matters—and so does the way you care for the business behind it.

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