Many women love the idea of becoming a freelancer. It’s an opportunity that allows for personal freedom, the ability to use your skills and talents, and unlimited income potential. However, if there’s one thing that a lot of freelancers struggle with, it’s managing their finances properly.
A lot of freelancers fail to recognize that they need to take great care of their financial situation if they want to stay afloat. So here are a couple of tips to help you cope with the financial side of freelancing.
separate your personal and freelance/business accounts
The first thing you want to do as a freelancer is to separate your personal money from the money that you spend and make as a freelancer. This not only helps with tax season, but it will also keep you from co-mingling funds.
two ways you can go about this:
- Open a separate account with your existing bank and use your new business account to manage your freelancing income and payout your business expenses.
- Or, if your current financial institution doesn’t offer attractive business account benefits, research and find a bank that you feel comfortable with and that has minimal fees.
keep up with the details
Whether it’s expenses or incoming money from clients that are paying you, it’s vital that you record every transaction.
budget for all of your freelancer expenses
Once you start recording all of your expenses and incoming money, you can start putting together a budget to see how much you can really spend on your business and how much you can transfer to your personal account as excess income.
make your taxes a priority
Taxes can be tricky to manage as a freelancer. Especially, if you’re not familiar with processing your taxes. Below, we’ve added an infographic that covers the issues in taxation and why you should take interest in it.
Click here for the full infographic