Managing Your Financial Responsibilities as a Freelancer

Life as a freelancer isn’t as free as most people think. Sure, you generally get to pick and choose who you work with, and you can work the hours you want to. However, in practice, you’re often more limited than you were when you worked a regular job because you can’t really decline job offers if you want to stay afloat, and you still need to work a certain number of hours to meet your financial responsibilities.

Note: This is a contributed post. Some links in this post are affiliate links, which means I receive a commission if you make a purchase. Affiliate relationships include, but are not limited to, Bluehost, Amazon Associates, Walmart.com SM, and Etsy.

[ctt template=”4″ link=”cb03n” via=”yes” ]Freelancing can be tricky when you need to manage everything yourself. Here are tips to help you manage your financial responsibilities as a freelancer.[/ctt]

One of the reasons why freelancing can be tricky is because you need to manage everything about your business by yourself. This includes doing your own finances which can be incredibly time-consuming and even lead to mistakes. So to help you out, we’ve put a couple of tips together that will help you manage your financial responsibilities as a freelancer.

Record every bit of incoming and outgoing money

You should start by using a spreadsheet or something similar to record every single bit of incoming and outgoing money. This way, you can track all of your finances and ensure that you have records for everything.

Use cloud-based accounting software if possible

Whether it’s managing your budget or invoicing customers, using cloud-based accounting software is a great way to make sure that you’re staying on top of your finances without the use of an accountant.

Hire a freelance or outsourced accountant

Of course, if you’re unable to manage your financial responsibilities, even with cloud-based accounting software, then we highly recommend speaking to a trained accountant that can help you with everything from managing books to doing your taxes.

We’ve added a helpful infographic below (some information is old) that explains exactly why America needs more tax professionals to help with the convoluted processes involved in calculating your taxes.

Infographic: Northeastern University

This is a contributed post.

Subscribe so you never miss a post.

If you find my tips useful, feel free to buy me a coffee to support my efforts. Thank you in advance!

Want to remember this? Pin it to your favorite Pinterest Board!