Managing your financial situation as a freelancer can be tricky, especially if you’re not accustomed to freelancing yet or if you’re finding it difficult to dedicate time to your financial situation. If this is the case, then we’ve got a couple of helpful tips that will make your life a lot easier.
Record all of your money coming in and going out
A lot of people don’t realize the importance of recording all of your financial transactions. This can help with everything from calculating your tax payments to budgeting so you know how much money you can pocket and how much you should spend on your business.
Use cloud accounting software when possible
Cloud accounting software is essential for making your financial responsibilities easier to handle. These types of software can help you record all of your incoming and outgoing money, they can help you create and send professional invoices to clients, and they can even give you advice on your tax responsibilities.
Hire an accountant if your financial responsibilities are taking too long
It can be incredibly time-consuming to try and manage your finances alone, especially as your freelancing business grows. That’s why it’s important to consider hiring an accountant in the future should it become too time-consuming for you alone to manage.
Dealing with your taxes can be difficult if you don’t have any experience with the tax laws and processes. This is why it’s vital to hire an accountant to help you, or at least do your research and study the process to make things easier.
To highlight this, I’ve included an infographic below from Northeastern University that explains six top issues with taxation.
Infographic: Northeastern University