Ask HN Sole Proprietors and Freelancers: How do you manage your money?

4 points by JBerlinsky ↗ HN
I'm a freelance programmer, and I've got an incredibly cumbersome bookkeeping method:

1) Money comes into my business PayPal account or 2Checkout account

2) I log in at the end of the day and move money from PayPal to Chase Business Checking (2Checkout does this automatically once a week)

3) I log in at the end of every two weeks and move my "salary" (just enough to live on) from Chase Business to my Chase Personal account.

Of course, this is a pain in the rear to keep track of, and my calendar is littered with notifications to move money around. Obviously, this is suboptimal. Checking my finances themselves is a little better, since I've got Mint and InDinero at my disposal, but I can't use either to transfer money around.

So, HN, how can I streamline this?

2 comments

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Step 3 might be the only thing to automate - does your bank offer scheduled transfers?

I'm not sure there's much more streamlining you can do - it's likely not really all that much work.

Personally I tend to just deposit all incoming money in to a few accounts, then periodically (every month or so) move some money to personal for living expenses. I'm not paying myself a 'salary' as such - it's all 'pass through' on to my personal tax forms anyway (was sole proprietor, now have an llc for some work).

The accounting stuff - keeping track of what money comes in and out - clients, contractors, etc - I'm using outright.com for the bulk of that. I guess I just don't see it as that much of a pain - certainly not enough to streamline.

Perhaps migrating to a payroll service would be useful to you? You might then have to worry about having enough in the 'business' account to cover the payroll, such as it might be.

Contact Paypal customer service and tell them you want them to "auto-sweep". They can do this but they don't make it obvious.