Freelancer Tips

Freelancer Finances Tips

By
Katherine Penta
|
February 15, 2018

The key benefit of freelancing is most evident in its name: it offers more freedom and flexibility. Yet it also carries with it certain burdens like managing your own hours, reporting, and – perhaps the most anxiety-producing thing of all – taxes. Being proactive about taxes early on will help avoid the panicked attempt to sort a year's worth of finances right before the filing deadline in April. Here are several ways you can minimize risk and reduce errors in finances as a freelancer when you work for yourself or on the road as a digital nomad.

Download AND CO from Fiverr

AND CO from Fiverr is a SaaS (software as a service) application that helps freelancers make more money by taking the friction out of freelancing. Using the AND CO From Fiverr app, you can easily manage business tasks, track time, send out invoices, and accept payments, all on one platform. So you can focus on why you started your business in the first place—to create. And the best part? It's completely free! Find out more and download the app here.

Document business expenses.

Learnvest describes the deductions you don't want to miss as a freelancer through business expenses. From business meals to paying rent on your office space to repairs for freelancer equipment (which can include your laptop, if you use it for work), keeping track of eligible business expenses will help you know what deductions you can make. Hiring a bookkeeper for a reasonable price can help you keep an active and accurate record.

Log your income.

Freelancers sometimes get lost in the sea of invoices and payments. Getting paid job by job, and having payments arrive sometimes long after a job is finished, can make it difficult to follow your income. Using a spreadsheet, accountant, or accounting software to remain up-to-date on a monthly or quarterly basis can give you a periodic check-in as to where your money stands. This will help avoid unpleasant surprises at the year's end.

Don't leave questions unanswered.

The tax code, especially for freelancers, can be baffling. Unfortunately, the burden of deciphering the code as it applies to your freelance business falls on you, and can sometimes lead you into puzzling areas that personal research can't solve.

It helps to have an at-the-ready tax professional at this point to answer specific questions and ensure you act correctly. Even if you're fairly confident about your process of assessing your tax liability, it can help to have reassurance and confirmation. An accountant can also help you if you happened to be audited by the IRS.

Peek into the future.

Even if you're meticulously keeping track of your business operations now, it helps to look into the future. This way, you won't be side-lined by unexpected costs and liabilities that could have more easily been prepared for. A financial planner can help give you a portrait of future business to provide a better idea of where your current operations are headed.

What other ways can freelancers stay on top of finances and taxes? Tell us in the comments below!

Katherine Penta
Brand and copy expert with over six years of experience developing brand personas, managing content, and writing copy for brands like Neutrogena, Visa, and Adobe.
e-mail marketing
Content Marketing
Everything You Need to Know About Email Automations
Fiverr's email automation freelancers can help you do everything from setting up the tools and helping you with workflows and triggers to creating tailored content.
Business Tips
Creating a Seamless Remote Hiring Process
By creating a seamless remote hiring process, you’re able to secure top-tier candidates from all over the world.
native ads
Digital Marketing
Native Advertising 101: A Brief Guide For Beginners
Fiverr's native advertising freelancers can help you with every step of the process, from setting up a campaign to creating the right native ad content.
Subscribe to Fiverr’s blog newsletter to get your FREE Ebook and learn step-by-step, how to be a successful seller or buyer on Fiverr
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
100% Privacy. No spam guaranteed