Why Freelancers Should Care about Bookkeeping
Understand What Matters
Unless you are an accountant, bookkeeping isn’t necessarily a priority for freelancers. Most consider it a nuisance and distraction, and with that, most spend little to no time keeping their books in order. The result, a busy entrepreneur, scrambling to find receipts at tax time or buried under a stack of past due invoice.
To be successful, you need time to maximize the time you spend on client accounts. To pay your bills, you need your clients to pay theirs. Outstanding invoices weigh your business down and impede your ability to live. Implementing a stable bookkeeping system will allow you to track outstanding invoices, and collect payment.
Xero has created an excellent summary of essential items freelancers need to consider when it comes to organizing their financial records. Do these things, and you should be able to face your accountant with a smile at the end of the year.
Get Organized - Organization is critical for any business, but especially for entrepreneurs, without it, your finances will be up in the air. If you’re questioning where to start, ask your accountant for help, or reach out to a bookkeeper. These professionals can help you understand what you need to do to get started, or what software programs would benefit your books. Most software programs allow you to fill in the blanks leaving you free to do what you do best.
Get Paid Faster - Up-to-date records help you get paid faster. Its apparent collecting payments for freelancers is difficult but is essential to your way of life. Having a bookkeeping system in place allows you to see who owes you and who is consistently late in paying. This knowledge can help you discover problematic clients, and help you decide whether or not the problem is worth keeping.
Need Advice? Reach out.
Basis 365 understands its vital for freelancers to have accurate records, and how losing site of this can cloud your judgment when it comes to the bigger picture. Dependable bookkeeping will keep in line with your business growth, and keep you out of the dark.
Take control of your bookkeeping and reach out to Basis 365 to find out more on what you need to do to get through the bookkeeping fog.