When you take the plunge in to contracting or freelancing, you also become a business. To successfully promote yourself you have to think like you’re running your own small business. Finding and guaranteeing work can often take precedent over other key issues contractors’ face, such as managing your own accounts.
Here at Gorilla Accounting, we have put together some handy tips on how to be as efficient as possible when it comes to managing your daily accounts.
1. Have a focus
Have a forecast of where you will be in say a years’ time – predict how you will spend the money you earn. Set short term financial goals – 3 months, 6 months or 10 months. The longer you set your goals for, for example over a year, the more difficult it can be to keep track of your accounts and you could easily lose focus. Short term goals are more manageable and tend to be more achievable.
2. Always keep up to date
Always keep up to date and accurate records – record keeping is essential for self-evaluation. How much are you spending? Are your profits going up? What are your expenses? A good idea is to keep a personal diary alongside your books. Make sure you keep track of all capital, expenditure and profits or losses.
3. Use accounting software
Online bookkeeping software is essential for managing your day to day accounts. Simple software can take away a lot of stresses contractors and freelancers may face when managing their own books. All you need is an internet connection and you can access your accounts on any device, even your mobile phone. It can often be an invaluable source.
4. Seek professional help
Using the services of a specialist contractor accounting company will save you time and money. Accountants will ensure you are working as efficiently as possible, and will take all the hassle out of managing your accounts. Using a contractor accountant will give you peace of mind knowing that you will be staying penalty free.
Here at Gorilla Accounting we understand managing accounts can be hard, however by taking advantage of our services, it needn’t be. By joining Gorilla, you will receive access to easy-to-use accounting software that has been specifically designed for your needs as a small business, contractor or freelancer.
