The second year, I just paid an accountant to do it for me. It was very expensive given that the accounts could be written in their entirety on a single sheet of paper. But I had the peace of mind that it was all done correctly by an expert, and they were responsible for ensuring it was all done by the book and filed properly. And they found a few mistakes I made in the previous year.
The accounts are essentially a fixed overhead; it doesn't get much more expensive if you do 10 or 100 times the business. But that makes starting out hard because it's a big annual fixed cost.
I do wish freelancing was easier, be it on closed or open projects. It does seem like governments have stifled entrepreneurship with overly burdensome taxation policies. I'm not opposed to paying income tax, but I do think it could be made sufficiently simple to pay for small freelance activities that it's not deterring it, and that would be beneficial for the economy overall. Many of these small jobs could be the catalyst for the formation of a new company if they take off.
But then I realized the enormous overhead that comes with taking payments in Israel. I'd need to open an account with the tax authorities and deal with a bunch of paperwork I don't understand. So now I'm busy learning the tax system or hiring an accountant... it's just not worth it unless they're going to commit to a large amount of hours, but I do value my free time as well. So either you pay me enough to quit my full-time job at a big company or forget about it. It's hard to do small amounts of freelance work because of the onerous regulatory environment.
All this is different for USians, who have to file tax returns every year anyway and simply need to add another source of income on their 1040.