Choosing to pursue freelance work is a huge step and involves a great deal of risk. You are setting up your own business, pursuing customers and making money from your skills and services. But if you’re successful, freelancing can change your life. Today we are going to discuss freelancing, how to make it your career, and the importance of good freelance accounting for your career.
Becoming a Freelancer
Most freelancers will tell you that freelancing was a change of career they never regretted. Being self-employed for many was a life-changing experience. It’s a way of using your skills to make a living. It is becoming an increasingly popular way of working, with freelancer numbers rising by 47% between 2008 and 2018.
More and more highly skilled workers and professionals are opting for a freelance career. It has never been easier to set up your own business. In fact, for most freelancers, all they need is the right computer and technology options at home. And with the cloud-app and tech boom, finding the right technology has been easier than ever. A skilled professional can turn their back on the rat race and control their own career.
Benefits of Freelancing
Freelancers benefit from a range of new working conditions, including:
Work whenever you want. You’re no longer bound by the traditional 9 to 5 workday. This allows freelancers to create a better work-life balance with their families.
Work with a Variety of Customers
Create your own network of customers across the country and even across the world. You get to choose who you work with, and what sectors and industries you prefer. Some enjoy the challenge of working with new clients, businesses, and sectors, others prefer working with industries they know well. This is the allure of the freelance industry, working when you want, with who you want.
Reduce Your Commute
As a freelancer, you have the ability to work from any location, as long as you have wifi. You don’t need to commute every day to an office space, unless you want to rent an office. Enjoy the flexibility of working where you want.
The Importance of Finances and Accounting
When freelancing, however, it is incredibly important to keep on top of your finances. Money is a big concern for freelancers, both established and those starting out. In a regular 9 to 5 job, you have an agreed-upon salary. When you’re self-employed, you don’t have the reliability of a regular wage. The more work you do, the more you get paid.
As a result, you need sound financial management to stay in control of your numbers and your income. While it isn’t the most glamourous part of running your own business, keeping good records and staying organised is extremely important. You need to stay on top of your bookkeeping so your finances are organised, which is important when tax returns are due.
Make sure you stay on top of late payments. Unpaid invoices can be the death of a fledgling freelance business. Ensure your payment terms are clear and always chase late payers. Accounting software can help you quickly, and easily, generate late invoices.
One of the most important things a freelancer can do is work with an accountant. Especially an accountant who is accustomed to working with freelancers, like Siragusa. If you are worried about late payments and tax returns, your business is losing valuable time that you could spend working. An accountant can sort out your finances and reduce your financial worries and stress levels.
While you are not required to hire an accountant for your tax return, it can take the stress out of the process for you. However, it is important not to wait until the last minute to hire an accountant. Accountants get slammed between March and June with last-minute tax preparations. As a result, the earlier you can get your taxes done, the better! If you leave it until the last minute, you might find it difficult to contact an accountant, if you can find one at all. Try to book in with a new accountant in January or February in order to beat the last-minute rush.
Further, accountants can do more than just prepare your tax returns. Your accountant can offer other services, including bookkeeping, business advise and coaching. These are important to help you not only run your freelance business and enjoy the lifestyle but also grow your business.
Are you a freelancer who needs help getting on top of your finances? Are you looking for an accountant who can help you not only prepare your tax returns but also grow your business and income? Then contact the team at Siragusa today for friendly, helpful advice. We specialise in freelance accounting and small businesses.