Freelancing is, in its nature, less stable than working for a company. You are the start, the middle and the end of all events and happenings. Whether it is the accounting or the cleaning of the office at the end of the day. All this needs to be done within the means of your finances and as the old idiom says, “Cash flow is king” and when you’re in between projects or invoices it’s often hard to keep ticking over. It’s important to live and work within your means, and understanding what they are.
What do you need?
We all have dreams of living in large houses with fancy cars, and the lucky ones will do someday, but right now – what do you need to continue? How much does it cost for that software? The office rent? The coffee you need? All of this needs to be calculated for and we would also argue a small flush fund is also needed for when an eventual rainy day comes and you need that cash injection.
Invoicing strategically
Invoice terms can change from business to business. Normally with larger companies terms can last for 30 days so if you commission work for the 20th of May you may not get paid until the 20th of June. This may be a problem for you so you may have to find other work to support you in between these payment dates. A key way of doing this is by diversifying your client base between larger companies and smaller independent work will keep your cash flow more fluid.
Getting help
If you’re not fond of the back end and inner working of business, organising your taxes, keeping your books balanced and clean it’s important to get help so you can get on with the work that you do. Gorilla Accounting is dedicated to helping freelancers and contractors deal with the monetary side of businesses allowing them to concentrate on the parts of the business they enjoy.
Freelancing/contracting means taking the reins on your life and business and driving yourself into the future with whatever profession you enjoy or are talented at, but it’s incredibly important to remember that there are always some underlying cogs that need to keep turning to do what you want.
Here at Gorilla we provide a highly compliant and technology driven accountancy service to the contractor and freelance market. We are able to set up your Limited Company for you and offer you an all-inclusive package that covers both your business and personal accounting needs. You will receive unlimited support from your own dedicated accountant and if you sign up today you will receive 2 months service completely free.
