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6 February 2014

Bookkeeping as a freelancer

As a freelancer, you are required to keep a set of records to keep track of your income and expenses. There are a number of professions that need to keep extra documents and records, and you should take advice from a professional to see if any of these apply to you.

This post will set out the major requirements for most businesses. Larger businesses (based on both turnover and number of employees) have more stringent requirements. Again, specific advice should be taken in these situations.

Income documents

Any time you receive income, you are required to issue a receipt - קבלה. This will state the amount received, and the method of receipt (cash, check, credit card, bank transfer etc.)

For any osek morshe (see here for definition), you also need to produce tax invoices - חשבוניות מס. The tax here refers to the VAT charged on the transaction. For any service provided, the invoice is produced when monies are received. As such, it is possible to combine the invoice and receipt - חשבונית מס/קבלה.

However, if you are selling goods, the invoice must be produced when the goods are transferred to the customer. As such, the invoice and receipt dates may well be different (and could cause cash-flow issues).

The invoice sets out what is being charged for, the amounts due before addition of VAT, the VAT due and the gross total.

Receipts and invoices both need to be bespoke for the business, produced in duplicate (at least - one copy for the customer, and one for you) and sequentially numbered. Please note that generic receipts and invoices (available in stationery stores) do not meet the requirements of the tax authorities.

Recording income and expenses

The income and expenses need to be recorded in a "receipts and expenses book" - ספר תקבולים ותשלומים. Here you record the income- which you split between pre-VAT and VAT, as applicable.

Expenses are recorded in a similar fashion, separating out the VAT that you are claiming on the expense, if relevant. The rest of the expense is then categorised, so that your profit and loss account (which will be attached to your tax return) can split out expenses per category.

Once all records are recorded, you will be able to produce your VAT and mikdamot (tax in advance) reports. Feel free to email me for a pamphlet discussing on further details how to do this.

It is also very important to keep all of your original documents (both income and expenses) in a file. Ideally these should be cross-referenced to your receipts and expenses book for easy finding.

It is possible to produce all of the above using software approved by the tax authorities. There are also a number of online programs available. Again, please feel free to email me and I will send you a list of those that I (via clients) have found.

One final point. The official languages of Israel are Hebrew and Arabic. As such, all documentation and recording must be done in at least one of these languages. English can of course be used, provided that one of the aforementioned languages is used as well.


  1. It never occurred to me (duh) that Israeli's also pay taxes. I'll bet the system and laws are less convoluted there than in the US. The tax code is about a million pages thick.

    Paul |

  2. You said, "It is possible to produce all of the above using software approved by the tax authorities. There are also a number of online programs available. Again, please feel free to email me and I will send you a list of those that I (via clients) have found."

    Can you please tell me about these programs? Also I am paying an accountant quite a lot to file my yearly report. Are there instructions in English for how and where to file this report myself? Thank you!

    1. Feel free to email me (details on the side) regarding the software.

      Basic guideline to filing can be found on this post:

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  6. A bookkeeper can be temporary or permanent. Working as a freelancer would never add any loss to your business. People need to understand what exactly the meaning of act as a freelancer. It too performs the same that a professional bookkeeper does for you. He is the one keeping track of all your income and expenses. For freelancer Bookeeping services please visit Freelance Bookkeeper Van Nuys.

  7. I have done a great deal of freelance work here in the U.S. and one thing that is often easy to overlook is the need to keep proper documentation for all income and expenses. In the beginning my freelance income was so small that I had not even thought about it. Very informative post!

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  14. فكرة برمجية لتقنية المعلومات . متخصصين في إنتاج البرمجيات تقديم حلول مميزة لادارة اعمالك
    وإنطلاقا من خبرتنا فى مجال البرمجيات الحسابية و الإدارية توصلنا إلى حل مناسب لصناعة برمجيات تساعد فى عملية الإدارة لـ " المحلات - المؤسسات - المستودعات - الشركات - المصانع - المعارض - الصيدليات
    بحيث يصبح تخزين المنتجات وحفظ الحسابات ومعرفة الصادر والوارد وبيانات الموظفين والارباح أو الخسائر والمبيعات والمشتريات والتخزين ومتابعتهم واصدار الفواتير وعمليات الجرد والتسوية وإنشاء تقارير منوعة لاداء وحسابات الشركة اكثر سهوله ودقة وسرعة وحرفية

    “ما يميز البرنامج هو التصميم البسيط و السهولة المحكمة التي لا تُخل بجودة مخرجات
    البرنامج وسرعة الإنجاز. يعجبني أيضا التكامل بين مختلف مكونات البرنامج، إمكانية إدارة البرنامج من أي مكان بالعالم، الدعم الفني السريع و أخيرا التجاوب السريع في تلبية اقتراحات العملاء
    محاسبة أونلاين
    أدر محاسبة شركتك على الانترنت في أي وقت ومن أي مكان. يمكن تخصيص البرنامج وجميع المستندات كالفواتير، عروض الأسعار، سندات الطلب، إشعار الدائن لتتماشى مع جميع ميادين العمل
    إستيراد البيانات
    الانتقال من البرنامج القديم إلى النظام يتم بسهولة بفضل خاصيات إستيراد البيانات. بالمقابل يمكن في أي وقت عمل نسخة احتياطية وإستيراد جميع المستندات والتقارير. تاتي على شكل CSV أو اكسيل أو PDF
    إدارة كاملة ومبسطة
    صمم حتى يكون أفضل برنامج محاسبي عربي وذلك بفضل تمكنه من جمع جميع ما تحتاج إليه الشركة : برنامج مخازن، برنامج مبيعات، برنامج العملاء،وبرامج محاسبي يتضمن شجرة حسابات كاملة.
    تتبع بسهولة فواتيرك في مكان واحد
    بفضل وضع فواتيرك يمكنك متابعة الزبائن لمعرفة اذا كانوا قد توصلوا بفواتيرهم ومعرفة بسهولة إذا قاموا بدفع مستحقاتهم بالكامل أو جزئيا و مراسلتهم إذا كانوا متأخرين. رموز الألوان هي مفيدة لمتابعة المعاملات الخاصة بك ومراقبة رصيدك.
    نموذج فاتورة بخيارات متعددة
    يمكنك التعديل على فواتيرك في أي وقت وإرفاق ملفات مثل
    صور المنتجات لإرسالها إلى الزبائن. يمكن تحميل الفواتير على شكل بي دي إف، طباعتها أو ارسالها عبر البريد من دون مغادرة البرنامج. ودون تغيير تسلسل الترقيم، يمكنك شطب فاتورة غير مدفوعة أو إلغائها حتى وإن كانت قد أرسلت سابقا. برنامج محاسبة للمحلات افضل برنامج محاسبة في السعودية برنامج محاسبة للشركات الصغيرة فضل برامج المحاسبة العالمية برنامج محاسبة للشركات


  15. برنامج محاسبة

    من افضل البرامج المحاسبيه الذي يوفر لمستخدمه القدره علي تسجيل الدوره المحاسبيه كامله للشركة من حركة خزينة مقبوضات ومدفوعات حركة الشيكات حركة البنوك القيود اليومية ومن ذلك يمكن استعراض عدة تقارير مختلفه للخزينة والبنوك .. تقارير عن الاوراق الماليه تحليليه .. دفاتر الاستاذ واليوميه العامه .. ميزان مراجعه سنوي وشهري .. تقارير مراجعه وتقارير المصروفات المؤيده والغير مؤيده .. قائمة مركز مالي بالايضاحات الكاملة.. قائمة دخل .. ميزانيه عموميه وارباح وخسائر وحساب المتاجره لذلك يعد برنامج ديكسف افضل برنامج حسابات ومخازن بالسوق العربيه

    برنامج حسابات

    برنامج محاسبة

  16. The real estate market of Tucson that still has a lot of getting better ahead of it is the high end as referred to in the past posts. It is going to take a very long time for the demand to begin to re- enter that market. A prediction, according to a real estate analyst is, wait for few more years for the entire real estate market to be back in a balanced and healthy status. In year 2012, it would be a good year in Tucson Tax and the start of a normal year across all parts and sections of Tucson real estate.

  17. سماك هو برنامج محاسبة عبر الإنترنت للشركات الصغيرة والمتوسطة لإدارة أعمالهم وزيادة الإنتاجية. لدى سماك خمس وحدات رئيسية لإدارة العمليات التجارية لأي مؤسسة. وقد استفادت برامج محاسبة من سماك العديد من المؤسسات الصغيرة والمتوسطة، وتحديدا الشركات الناشئة عن طريق خفض التكاليف السنوية والسماح لهم بالتركيز الكامل على تطوير الأعمال الأساسية وعمليات الأعمال بدلا من أنها عثرت في مشاكل البنية التحتية لتكنولوجيا المعلومات والقضايا.

    ومن الفوائد الرئيسية الأخرى برامج محاسبة السحابية من سماك أن الترقيات مجانية تماما ومتكررة وفورية ولكن من ناحية أخرى فإن دورات تطوير البرمجيات داخل المؤسسة طويلة جدا بالمقارنة مع برمجيات المحاسبة المستندة إلى الحوسبة السحابية.

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