Going freelance is a huge step in your career that can provide great benefits. However, there are several factors that must be considered if you want to actually succeed as a freelancer. One of these is your personal finances. Being talented in a certain field does not necessarily mean that you are destined for success. You must also learn how to properly manage your accounts, handle invoicing and plan for the future.
The Benefits of Proper Planning
Time is considered to be one of the most precious assets of a freelancer. This is the reason why creating an accurate schedule is vital.
You need a schedule that is highly structured. The plan must be broken down into years, months, and days to clearly have a perspective on the available time for work and leisure.
Create project timelines to provide realistic dates for delivery.
Plan ahead of time for expenses and income.
Make use of a time-tracking software to manage most of your time and money properly.
Invoicing your Customers
Managing all your invoices properly will help you stay updated with your finances and ensure payment on time.
Send the invoices on time at the end of the project or at regular intervals.
Create clear invoices for better understanding.
All invoices must include pertinent details such as contact numbers, expenses, financial totals and payment details.
All invoices must be numbered individually for reference and filing reasons. This is necessary for both parties involved.
Make sure that all invoices are filed with backup copies. This is vital for future references and to clear any disputes from parties.
Make use of online resources to manage the billing process.
Saving for the Future
Saving may not be an enjoyable thing to do. However, this step can be a lifesaver in times of financial difficulties. It is necessary to manage all your accounts and monitor the flow of your money. Your saved money can be used for other payables such as rent and tax. This is one of the reasons why you need to forecast your income and expenses in months and years to come.
Forecasting short and long term expenses are necessary.
You can make use of software packages such as inDinero to keep an eye on your financial health
You can make use of your savings for bigger expenses or simply to reward yourself for your hard work.
Removing Costly or Expensive Clients
As soon as you have a good list of clients, it is necessary to separate those that provide great benefits and those that are only costing you time and money. If you have clients that are difficult to deal with and provide little or no benefits to your business, it is more advantageous to ditch them. Once the relationship between you and the customer is no longer fruitful, it is time to say goodbye. However, you should do this in a very kind or polite manner to avoid offending the client. This will maintain your professionalism and improve your skills in handling future deals with clients.
About the Author
Jeff Adcock is the president of Veritrans Merchant Services which is a online credit card processing firm headquartered in Houston TX. Check out the website for more info.
