Many freelances have multiple tasks to handle at the same time which leaves little time for bookkeeping. However, proper bookkeeping will assist you in tracking invoices and collecting payments from clients. In addition, this will ensure proper cash-flow management. If you are a Freelancer that finds themselves not updating and maintaining your accounts regularly you should consider hiring a bookkeeper. If you are not sure where you need to starts below are some bookkeeping tips for Freelancers.
Create Organization System
Freelancers should focus on keeping their systems organized. This means beginning immediately you start freelancing, seeking the expert advice and guidance of a professional bookkeeper and using recognized accounting systems. Once this is completed you will need to set times to review your accounts frequently.
Record Keeping
You must ensure to keep clear and accurate records of hours works, jobs completed, expenses incurred, and all payments that are made and received. Not only with this prove vital at tax time, but this will also assist you in determining the profitability of clients and jobs.
Accounting Software
There are a number of accounting software programs that are user friendly and set up for Freelancers. Software such as Quickbooks Self Employed can assist you in generating accurate invoices and produce reports. Utilizing the software is far more preferable than tracking your business through an excel spreadsheet.
Set Aside for Tax Payments
As a Freelancer, you will not have taxes deducted from your pay. Your taxes will be your responsibility so it is imperative that you be disciplined and put aside tax payments accordingly. If you utilize software it will assist you in calculating the amount of tax that you have due, but I would highly suggest that you retain a bookkeeper that is knowleable about both Federal and State Taxes.
Are you a Freelancer that is thinking about hiring a bookkeeper instead of attempting to do it on your own? CWC offers bookkeeping services, QuickBooks set up and new business services so that you may focus on your core business. If you would like more information contact us today.
