A Freelancer often find themselves juggling multiple responsibilities, which can be both exciting and overwhelming. The freedom and flexibility that freelancing offers come with the challenge of managing all aspects of your business independently. Freelancing or contracting requires you to wear a lot of hats. From relationship-building and keeping track of your time to marketing your skills and actually doing the work, freelancing demands a diverse skill set.

One of the critical aspects of freelancing is handling your finances efficiently. Without the structure of a traditional job, freelancers must take full control of their income, expenses, and taxes. This self-reliance is empowering but also necessitates a solid understanding of financial management. Establishing good financial habits early on is crucial for long-term success in freelancing.

As a freelancer, it’s essential to understand your deductions.

Knowing what expenses you can and can’t claim will help you keep the right receipts and track the right expenses. Freelancers often have different working setups, and what you can claim can vary between industries and occupations. Therefore, it’s beneficial to consult with a professional to understand your specific situation better. This will also aid in planning for any significant work-related purchases you may need to make.

Another important aspect of freelancing is getting a system sorted. A well-organized system for recording expenses and collating invoices will save you time and stress. Freelancers need to focus on their core activities without getting bogged down by administrative tasks. Investing time in researching and choosing a system that works for you will pay off in the long run. Software platforms that allow you to record time spent on projects can streamline the invoicing process, making it easier for freelancers to get paid on time.

When freelancing, it’s also vital to stash that cash. Freelancers must keep their tax obligations top of mind, ensuring they set aside money in a separate account or consider voluntary instalments. This approach prevents any last-minute tax surprises and helps maintain financial stability. Paying yourself a wage and keeping your business accounts separate from personal finances is another effective strategy. This not only helps in budgeting but also ensures that you don’t spend all your business income as personal cash. Additionally, setting aside funds for holidays and quiet periods is a prudent practice that can help freelancers navigate the ups and downs of their income flow.

Freelancers can significantly benefit from professional guidance to simplify their financial processes. We can help make this process easier by setting up systems that take the headaches out of your finances.

Understand your deductions

Before you start, it’s essential to understand what expenses you can and can’t claim. This means you’ll keep the right receipts and track the right expenses. Figuring out what’s what can be a little confusing as everyone has a different working set up and what you can claim for can vary between industries and occupations. Talk to us about your business expenses from the beginning. This will also help you plan for any bigger work-related purchases that you may need to make.

Get a system sorted

You’ll thank yourself later for setting up a good system now. Getting your expenses recorded and your invoices collated means you’ll be able to spend more time doing the important stuff in your business. It’s not just about saving time – keeping on top of your cash means you’re more likely to succeed. Do your research and choose a system that will work for you. Consider choosing a software platform which allows you to record your time spent on projects, it’ll make sending those invoices that much easier!

Stash that cash

When you’re running your own business or working for yourself, it’s important to always keep your tax obligations top of mind. Make sure you have money set aside in a separate account or consider entering into voluntary instalments.

One way to budget and keep on top of your business tax is to pay yourself a wage. Keeping your accounts separate also prevents you from thinking of all your business income as spending cash! Remember to also put aside a little extra to cover your holidays and any quiet periods.

We Can Help!

We can help make this process easier, so talk to us about setting up systems that take the headaches out of your finances. Email us at [email protected], call us at 1300 844 678, or submit a form.

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