Freelancing is the first step into independence for a lot of people. It gives you more control over your schedule, your income, and the work you do. Still, that initial leap is a big one, and it comes with a lot of technicalities many people aren’t prepared for. So, once you start with a business and a business name, it’s time to put some tools into place. Here are some tips on how to manage your time, clients, and payments:
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Choose the Right Accounting Software
One of the most important steps you can take in your freelance life is to use accounting software to help you keep track of your invoices, your income, and overall business expenses. Without it, you may find yourself scrambling to keep up with your taxes at the end of the year. You might also struggle to keep up with your accounts payable, which can lead to late bills.
The right accounting software will help you keep track of all of your finances. While you can start with something as simple as PayPal, this invoicing system will only get you so far. Invoicing is only a small part of running your own freelance business. You’ll ultimately want to open a business checking account, run all of your business income and expenses through it, and then categorize those items with your accounting software. This makes taxes a smooth process when it comes time.
Understand Your Finances
The reality is that once you start running your own business, you need to understand more about your own finances. When you work for someone else, or a company, you typically get paid through a payroll system. For most people, this type of work and pay means you fill out a quick form at the end of the year and you pay what you owe to the government, or submit a claim for what the government owes you.
When you work for yourself, you need to figure out your retirement plan, your health insurance plan, and your deductions. After all, you’re no longer paying into Social Security and you aren’t receiving employer sponsored health care. Without tracking your business deductions, like a portion of your rent, utilities, cell phone, and even gas, you could end up paying thousands of dollars in taxes unnecessarily. So, take a class or get a book and start educating yourself on finances as a freelancer.
Utilize a Calendar System
Many people assume that turning to freelance life will give them more freedom, only to find themselves overwhelmed, behind on deadlines, and forgetting tasks. Without a supervisor or manager to hold you accountable, there is no middleman to remind you of projects and tasks. You are now responsible for yourself and your clients, and it can be much more devastating to disappoint and be fired by a client you failed.
The solution? A calendar system. Many freelancers use multiple calendars. You can have a work calendar you share with clients, or one you track yourself. It’s a good idea in this digital age to ensure you have an online calendar. That way, you can access it from anywhere. You might also want to have a physical desk calendar of daily tasks you can check off as you go.
Keep a Running Portfolio
One part of business many freelancers forget about is their portfolio. You may have built up a portfolio when you were preparing to leave your job and step into freelance life. But if you haven’t updated it since, this is a mistake. One of the dangers of working for yourself and having clients you contract with is that they can drop you at any time. Losing a single client could be financially devastating, and if you’re unprepared, it can take months to recover.
Ensure your CV and your portfolio are always updated with your latest and most impressive work. Always be thinking of yourself as a work in progress, constantly evolving and improving your skills. Add any new case studies, testimonials, or creative content you produce to your portfolio, and keep it on a website for any potential clients to access. Then, be sure to send out your CV and links to your portfolio a few times a week to new potential clients, just to stay fresh.
Set Boundaries
Finally, it’s really easy to become consumed with work, especially in the United States, where work is an obsession for many. This hyperfocus on work to the detriment of all else can be detrimental to your mental health. When you begin to associate your value with your work, the real danger lies in losing it. At that point, you begin to feel like you’re losing your value, or like you’re worthless.
While it’s important to set boundaries around a traditional job, it’s even more important to set boundaries around freelance work. Why? Because you literally can work around the clock, and that’s bad for your health on so many levels.
So, set boundaries and stick to them. Make a schedule, turn off your phone and computer when you’re not working, and go do something you enjoy outside of work. Read a book, watch a great movie, or go for a walk!
In the end, freelance life can be an avenue to joy and freedom for anyone who learns to manage it properly and set strong boundaries. Take it one step at a time — learn about your finances, put the right tools in place, and focus on honing your skills. The clients will come; they usually do when you offer a great product or service at reasonable rates. And you’ll get better at figuring that out over time. Be patient, work hard, and believe in yourself.
