As promised, we’ve turned the corner. We’ve now passed by all the technical teaching of the course. This marks the first day of the maintenance portion of 30 Days or Less to Freelance Writing Success. The following lessons demonstrate how to maintain our success. The remainder of the course focuses on diversifying your online business, accounting, your brand, and spreading your business out into other fields.
I have plenty of experience in the self-employed world. For eight years, I’ve had to track and monitor all sorts of things myself. In Lesson 18: Accounting for Your Business, Gina goes into detail about the best way to do what I’ve done for years. Such great info!
First and foremost, you must have a method for properly billing clients and collecting payments.
Paypal works great. Its invoicing and payment collection system is top notch. Transition it to a business account by linking up your bank account. This opens up many features not accessible to normal accounts.
Use it to generate invoices, send them, and receive payments on them. Be warned, credit card processing with PayPal is expensive. But, that’s not something you’ll have to fret about in the beginning.
Setup a Profit-and-Loss Statement ASAP
One of the best things you can do for your business! I use Gina’s copy. It can be found here. Please copy it before populating it.
I’ve started mine and have already filled it out with my new client.
From your first sales transaction, put away some money for your yearly responsibilities. It’s important to put away 20-30% of your net income in preparation.
The self-employed are responsible for more money in taxes than they were as employees. We freelancers, pay both the employer and employee portions. However, your tax liabilities will be offset somewhat by deducted expenses.
The takeaway here? Hire an accountant. He or she can tell you what’s best for your business at this stage.
As Your Business Grows
Gina recommends Freshbooks accounting software when PayPal just doesn’t cut it anymore. There are limitations to the number of clients allowed. You can only have 25 clients at the lower-tiered fee. However, you can delete one-time clients and not be penalized for it.
Stripe offers fees lower than those of PayPal. It integrates seamlessly with Freshbooks. Payments are automatically logged into your software.
As your business grows, you’ll have to tend to a few minor housekeeping items. This is a good thing! Having these responsibilities means you are succeeding and doing well!
That said, you must be mindful of saving for taxes, credit card processing fees, and finding the right accounting software assist you in tracking it all. No hurry, though.