Freelancer income tracker: invoices, overdue payments and tax set-aside
Updated 2026-10-20 · Plainsheet guides
When you freelance, nobody withholds tax from your pay, nobody reminds a client that an invoice is 30 days late, and no two months bring in the same amount. A simple freelancer income tracker takes care of all three. It shows what you've billed, what's been paid, what's overdue, and how much of each payment belongs to the tax bill rather than to you. This guide walks through the setup and the habits that make it work.
The core: one row per invoice
Set up a tab called Invoices with these columns:
- Invoice #: sequential, e.g. 2027-001
- Client and Project
- Issue date and Due date (issue date + your payment terms, e.g.
=B2+30) - Amount
- Paid date: left blank until the money arrives
- Amount paid
- Status: a formula, not typed by hand:
=IF(G2<>"","Paid",IF(TODAY()>E2,"Overdue","Outstanding")) - Days overdue:
=IF(H2="Overdue",TODAY()-E2,"")
Use conditional formatting to turn overdue rows red. A glance then tells you who to follow up with.
A follow-up routine for late invoices
- Due date: a friendly reminder with the invoice attached.
- 7 days late: a short, polite check-in asking whether anything is needed to process payment.
- 14–21 days late: a direct note restating the amount, the due date, and how to pay, and mentioning any late fee in your contract.
- 30+ days late: pause new work for that client and escalate according to your contract.
Add a Last reminder column so you know where each invoice is in the sequence.
Get the free budget sheet: a simple one-tab monthly budget for Excel & Google Sheets.
We'll store your email to send occasional Plainsheet updates (new templates, checkout opening). No spam, never sold; unsubscribe anytime by emailing simhanseog66@gmail.com. See Privacy · About · Contact.
How much should a freelancer set aside for taxes?
It depends on where you live, your total income, deductions, and whether you owe self-employment or social contributions. So the honest answer is: find out your effective rate, then set aside a fixed percentage of every payment. As a rough guide, many freelancers in the US set aside somewhere around 25–30% of profit to cover income tax plus self-employment tax. In other countries the right figure can be higher or lower. If you're unsure, ask an accountant once. They can usually give you a percentage in a single conversation, and it's worth paying for.
In the spreadsheet, put your chosen rate in one cell (e.g. Settings!B1 = 28%) and add a column:
Tax set-aside = Amount paid × Settings!B1
Then do the important part: every time a payment arrives, move that amount into a separate savings account. Money you've set aside on a spreadsheet but not moved is very easy to spend.
Track business expenses too
Add a second tab, Expenses: date, vendor, category (software, equipment, travel, coworking, professional fees), amount, and a link or note about the receipt. Your profit is income minus deductible expenses, and that's usually what tax is based on. Keeping receipts organized all year turns tax season from days into hours.
Quarterly or estimated payments
Many tax systems expect self-employed people to pay estimated tax during the year rather than once at the end. Look up the deadlines that apply to you and add them as rows in a small Tax calendar tab, with a column for the amount you paid. Your set-aside account should be able to cover each payment when it's due.
Monthly income view: smoothing feast and famine
Add a summary tab that totals paid income per month (by paid date, not invoice date):
=SUMIFS(Invoices!G:G, Invoices!F:F, ">="&DATE(2027,1,1), Invoices!F:F, "<"&DATE(2027,2,1))
Chart it. After a few months you'll know your low months. A common way to smooth things out is to pay yourself a fixed "salary" from a business account each month, based on a conservative average, and leave the rest as a buffer. Many freelancers aim for a buffer of 2–3 months of expenses.
Useful numbers to watch
- Outstanding total: money you've earned but don't have yet.
- Overdue total: money you should be chasing today.
- Income by client: if one client is more than half your income, that's a risk worth knowing about.
- Effective hourly rate: project income ÷ hours actually spent.
- Year-to-date tax set aside compared with your estimated tax.
Keep it simple enough to maintain
The best tracker is the one you update every time you send an invoice and every time money arrives. That's two moments, a minute each. Do a weekly 10-minute review of overdue items and a monthly look at the income chart, and you're well ahead of most freelancers.
Template
The Plainsheet Freelancer Income & Invoice Tracker ($7) includes the invoice log, automatic paid/outstanding/overdue status, a monthly income chart, and a tax set-aside estimate at whatever percentage you choose. For your personal side, try the paycheck budgeting method using your fixed "salary", or the free monthly budget sheet.
General information, not tax advice. Tax rules differ by country and situation, so confirm with a qualified professional.
FAQ
How much should I set aside for taxes as a freelancer?
It depends on your country and income. Many US freelancers set aside roughly 25 to 30% of profit. The safest approach is to confirm your effective rate with an accountant and set aside that percentage from every payment.
How do I track overdue invoices in a spreadsheet?
Give each invoice a due date and a paid date, then use a formula such as IF(paid date is blank and today is after the due date, "Overdue") and highlight those rows with conditional formatting.
Should I track income by invoice date or paid date?
For cash flow and setting aside tax, track by the date the money actually arrived. Keep the invoice date too, so you can follow up on late payments.
Do I need separate bank accounts as a freelancer?
It's strongly recommended. A business account for client payments, a savings account for tax set-asides, and your personal account for the fixed "salary" you pay yourself. Keeping them apart makes bookkeeping simpler, keeps you from spending tax money by accident, and gives you a clear record if you're ever audited.
How should I handle a client that pays very late?
Follow a set reminder routine, keep your messages polite and factual, and include late-payment terms in future contracts. Many freelancers ask for a deposit (often 30 to 50%) up front from new clients, or pause work after a set number of days overdue. Your tracker's days-overdue column shows you exactly when each step is due.
Can a spreadsheet replace accounting software for freelancers?
For many solo freelancers with a modest number of invoices and expenses, yes, especially in the first few years. Once you have employees, inventory, sales tax across regions or many transactions, accounting software or a bookkeeper usually pays for itself. Even then, a simple income tracker is a handy dashboard.
How much should a freelancer keep in an emergency buffer?
Many freelancers aim for two to three months of business and personal expenses, separate from tax savings. Because income is irregular, this buffer is what lets you pay yourself the same amount every month and turn down bad-fit clients instead of taking any work that comes along.
Get the free budget sheet: a simple one-tab monthly budget for Excel & Google Sheets.
We'll store your email to send occasional Plainsheet updates (new templates, checkout opening). No spam, never sold; unsubscribe anytime by emailing simhanseog66@gmail.com. See Privacy.