27 Aug 3 freelance accounting mistakes to avoid
The world of work is a fast-moving place and this is more true than ever when you consider how people work now.
Freelancing has really grown over recent years to become a popular career choice. When you look at the freedom, flexibility and chance to be your own boss it offers, this is no surprise. If you work for yourself, freelance accounting is something to think about and paramount to overall success.
But what mistakes should any freelancers avoid in this area?
Not prioritising your business finances
The most common yet simplest mistake many freelancers make is not paying enough attention to their accounts. This is easy to understand because many who start freelancing are not into the financial side of running a business. As a result, they can often fail to see how important it is or leave it at the bottom of their to-do list. Not focusing on your accounts can see you failing to keep track of your expenses, your income and how much you have going out. It can also make it harder to plan strategically for the future.
Mixing business and personal money
The old saying about not mixing business with pleasure is very true when it comes to money. A good freelance accounting tip, therefore, is to always use a separate business bank account. Do not be tempted to use your personal account for everything. Keeping your finances apart will make working out your tax return simpler, make it easier to track your business finances and be a lot less hassle in general.
Not being on top of invoicing
This might sound strange as you would think that most freelancers would be focused on getting paid for work completed. This is not always the case though, due to the pressures of finding more work or completing new projects. One freelance accounting mistake which can creep in, as a result, is not keeping on top of your invoices. This can be both failing to send them out in good time and not chasing up late payments.
Freelance accounting help in Manchester
At SQK Accountancy, we have been helping freelancers in Manchester with their accounts for many years now. Whether it is assistance with tax returns or general accounting advice, we are the people to trust. Get in touch on 0161 706 0444 to speak with an expert.