Keeping Basic Accounts as a Freelancer

Doing freelancing has always been very rewarding. You work all the way from your place. You work at your own time. You earn as much as you want. You don’t have a grumpy boss to whoop your ass around. And you don’t have jealous officemates ready to stab the moment you turn your back. No matter how you put it, however, you end up the guy who doesn’t have a stable job. That is why it’s important for you to keep track of your basic accounts. The following are important considerations you need to take into account:

Get a Solid Billing System—as online invoicing tools grow in numbers, you can try them and see what billing system you are convenient working with. You can register for a trial version, which allows you to test run their system. Make sure to compare each other’s features. See where you can make most of your money.

Keep a List of People Who Owes You Money—knowing the ones who are paid up and the ones who are past due allow you to catch a glimpse of your earnings for a specific month. Doing so will give you a real-time data of your income against your payable bills. It allows you to draw out or update your plans for the next working session should you see lapses in the previous one.

Save Every Eeceipt of Every Payment—might sound unhealthy hoarding of unnecessary things, eh? It’s not pointless at all. Do this and you surely save thousands of dollars yearly. Keeping all receipts from food, gas, electricity, internet connection and phone lines allows you to see whether you have large unnecessary expenditures or a cost-efficient way of life.

Create a Bank Account Intended Only for Online Purchases—you surely don’t want to mix up your personal accounts with your business account. You’ll be protecting the safety of your business, house and your money if you maintain it that way. Breach of this simple rule would endanger you to be exposed to legal hot waters that might result to the loss of your business and properties. So, again, keep different accounts.

Track Your Everyday Spending—earning is inversely proportional to your spending. The higher your expenses, the lower your income gets. You may want to make sure that your money is well spent than being thrown away for pointless things. List all things you purchase and all bills you paid. Categorize each purchase or payment into two: “necessary” and “unnecessary.” Of course, you owe yourself with the latter but make sure to keep it low.

Being a freelancer gives you the freedom—to earn and to spend. Your earning is boundless, not limited by a four-cornered office walls. You get to buy what you want, and spend like you just got your face on Forbes Magazine. But end of the day, you are still a freelancer. No work, no pay. And it is necessary that you think smart. Keep your basic accounts in check, because you don’t have a lifetime to work. Think ahead of everyone. Good Luck!

 

 

2 Responses to “Keeping Basic Accounts as a Freelancer”

  1. Maggie Lesure says:

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