In the U.S. alone, 57 million people worked in the gig economy in 2018. This number keeps growing each year, and if you’re planning to join the freelance workforce, you need to be ready.
One of the most challenging aspects of freelancing is keeping track of the money that comes in and out of your bank account. Bookkeeping is a must, not only for tax purposes but also to help you stay profitable.
Here are 5 simple, yet important freelance bookkeeping tips you should learn to keep track of your income and expenses.
1. Get Organized
Before you delve into self-employed bookkeeping, you need to get organized and know what you should focus on. If you work best with spreadsheets, make sure to name them appropriately and keep them in a safe place.
You can also use organization apps and tools, as long as you can access them at any time. Keeping everything on file will help you budget and come in handy if you’re ever under an audit.
2. Learn About Bookkeeping
If you want to run your own freelance business, you should learn the basics of bookkeeping for self-employed. Whether you’re just starting out or have an existing income stream, you should know exactly what happens to your money.
Start by taking an online course, attend a local workshop, or ask for advice from a local bookkeeper. You can also learn to use bookkeeping tools and manage your finances yourself from anywhere.
3. Track Your Income and Expenses
Keeping track of your income, business expenses, budget, and savings is crucial for running a successful business. No matter where you are in the world, you’ll have to pay taxes on your earnings, so make sure to set aside enough money for that.
Have a system in place to track payments from clients, along with pending or late payments. Keep the receipts of all business purchases you made so you can get some tax deductions wherever possible.
4. Use Online Tools and Software
Nowadays, it’s easier than ever to run a profitable business with all the technology and online tools available. The easiest way to manage your self-employment bookkeeping records is to use bookkeeping software. QuickBooks Desktop Cloud Hosting is one of the popular cloud based accounting software which can be accessed on Azure WVD is popular among the CPA`s and bookkeepers.
You can see your entire financial history, income streams, expenses, and taxes owed. You can also use services like thepaystubs.com to create pay stubs online and pay yourself, your employees, or outsourced workers.
5. Consult a Professional
If managing your bookkeeping is too much for you, you can always consult or hire a professional bookkeeper. Before you hire someone, do in-depth research, get recommendations, and do background checks on potential hires.
Finding the right person can save you time and money, and you’ll have your finances sorted out at any time.
These Freelance Bookkeeping Tips Will Help You Stay on Top of Your Finances
Whether you’re a full-time freelancer or just getting started, keeping track of your money flow is essential for staying afloat.
These freelance bookkeeping tips will help you manage your business finances so you can spend your time making more money.
Need more freelancing tips and tricks? Check out the rest of the articles on our website where we cover SEO, blogging, and social media tactics to build your business.
We are happy to present this collaborative post to offer valuable information to our readers.