Managing your accounts is a necessary evil as a freelancer and goes hand in hand with having the freedom to control your own work life. If you’re new to freelancing, you may find yourself with even less free time than you had before and this can make managing your accounting even harder.
In the non-freelancing world, all of your taxes and other contributions are normally taken right from your monthly pay packet. So when you’re thrown into the world of invoices and taxes, it can all seem a bit much.
Luckily, there are things you can do to take away at least some of the burden when it comes to managing your accounts and this guide will show you how.
Create A Separate Bank Account
Whether you’ve registered your business as a limited company or you’re going freelance as a sole trader, having a separate bank account for your business is a must. It will make managing your money much easier and will save you a lot of headache when it comes to doing your tax return each year.
One of the biggest mistakes you are likely to make if you’re new to freelancing is not chasing up unpaid invoices or forgetting to send an invoice on time. Forgetting to send off your tax return is also a favourite of first-time business owners. All of these things can be detrimental to your business as it will interrupt your cash flow and trigger a chain of financial problems.
To combat this, it’s essential that you take control of these issues before they arise. You can do this by using a reminder system that lets you know when you’re about to miss a deadline or when your payments haven’t come in.
Provide Clear Invoices
As a freelancer, you’ll be able to manage your invoices much easier if you provide well thought out invoices from the start. This will help you to easily assess how much you’ve made each month and from who, as well as making it easier for clients to pay you without a hiccup.
A well thought out and professional invoice will have clear descriptions, reference numbers, pay by dates and even category numbers, depending on what the invoice is for.
Move Your Accounting Online
You might be surprised to hear that there’s a really easy way to do everything in this guide and more with a simple click of a button. By moving a large part of your accounting to an online system, you can control and manage all of your accounts from one place.
This time saving software provides freelancers with extra working hours and offers a complete overview of company finances. From the creation of professional invoices, to a detailed summary of how much you’re earning month by month, signing up for accounting software could be the best decision you ever make as a freelancer.