How much does it actually cost to set up a freelance business? Whether you've just finished a course or you are working full time, looking to make the transition, or running a side hustle, going freelance requires some startup cash. Here's the breakdown whether you've got money to burn or you're on a budget.
I'd like to talk about an uncomfortable, embarrassing and awkward subject that many freelancers try to avoid at all costs. It chokes us up, makes our palms sweat, gets in the way of our creativity and is often the cause of our anxiety. I am, of course, talking about money.
BOOKKEEPING FOR FREELANCERS
Most of the freelancers we know would rather gnaw off their left arm than do their bookkeeping - and with good reason. It’s confusing, it’s boring, and it’s not what you signed up for. You became self-employed to spend time doing what you love - not wrestling with spreadsheets. But, like it or not, accounting is important as a way to understand your business finances and a legal requirement! Thankfully there’s a simple way to not hate bookkeeping. Let's address the accounting spiral of doom.
HOW TO DEAL WITH LATE PAYMENTS
It’s rare to meet a freelancer who hasn’t had to chase a late payment or had issues with a client who refused to pay. It impacts cash flow, is detrimental to the freelancer’s well-being, and is highly time-consuming. Freelancers don’t want to jeopardise the client relationship with threatening emails or, worse, spend time in the Small Claims Court. So what's the answer? When Solna, a smart invoicing App, got in touch, we jumped at the chance to ask their advice.
NO MONEY, BIG PROBLEMS
The rewards of freelancing are highly appealing. Flexible hours, plenty of travel, more time with the kids and doing something you actually like to do every day. It all sounds pretty great! If only we didn't have to pay the bills. The pressure to make enough money is a constant companion for a freelancer and an area many prefer to simply ignore.
JUST WHAT DO MORTGAGE LENDERS WANT FROM ME?
Mortgages are not rocket science. However, lenders especially do like to wrap up a relatively simple process into a more complicated, jargon heavy transaction that can leave you frothing at the mouth.
SELF ASSESSMENT TIPS FOR FREELANCERS 2016
No sooner have you settled back into work after a festive break do you have to take care of your Self Assessment. 31st of January is the cut off point in case you missed the billboards dotted around the UK and there is a £100 fine if you miss the deadline with an additional £10 per day for 90 days thereafter. To make the process as painless as possible we've put a checklist together for you to follow.
CALCULATE YOUR HOURLY BOTTOM LINE
What you are worth and your bottom line are two very different things. The main difference is that the former relates to your value while the latter is a calculation to determine what you need to charge in order to sustain your current standard of living or 'break-even' point. The beauty of this little bottom line formula is that you can adjust it to find out what your freelance hourly rate should be to achieve the life you'd like to live. Remember, know what you are worth, then ask for it!