5 Accounting Tips For Freelancers

We know you didn’t choose to work with your talent just to spend time on accounting. Here are 5 quick tips to help you get started…

1. Record transactions regularly

Keeping track of your transactions, receipts and expenses can be a hassle. But, it’s the most important part of doing your accounting. Set aside time regularly to keep up to date with recording your information, and get the benefits of knowing where your finances are at.

There are lots of helpful features that can make the process easier. Accounting software that uses bank feeds is one! When you connect your bank to an accounting software, your payments are automatically imported. All you need to do is record them.

Receipt capture apps save a lot of time. Simply take a picture of your receipt when you receive it, upload it to your accounting software and record it in your accounting later. You’ll also have the right records if you need them.

2. Track your invoices

Every freelancer needs to get paid. Creating and sending invoices when you need to get paid is important, but how often do you track your invoices?

Late payments shouldn’t happen, but if they do you need to know as soon as possible. Knowing when your invoices go overdue gives you options. Depending on the payment terms you set in your invoice, you can either send a reminder email or add interest to discourage late payments.

An integrated accounting software that lets create, send, track and record invoices means you stay on top of your payments without any extra work.

3. Get to know your finances

Knowing your finances means you can make more informed decisions for your business. Reports can help you get a clear overview of your accounting. So, you can decide whether to cut costs, take on more projects, or invest in growth.

Instead of spending time crunching numbers and struggling with spreadsheets, find a software that offers automated reporting. You can see your numbers at a glance, and get the information you need to understand your finances.

4. Prepare for tax returns

Doing your tax return doesn’t have to be stressful! Preparing for your tax return ahead of the deadline can help make the process smoother.

Set aside cash throughout the year to make sure you aren’t hit by any unexpected bills. By doing your accounting regularly, you’ll have a good idea of how much money you will need to pay.

Make sure you have all the information you need to complete your return. For a Self Assessment tax return, you can simply fill in the information from your accounting.

If you’re affected by Making Tax Digital for VAT Returns, you will need compliant online software. Pick one that lets you automatically generate a VAT Return from your accounting, so you can make your submission in just a few clicks. No maths required!

Keeping the right records is really important. HMRC can ask for documentation to prove your finances. Instead of finding places to store receipts, online copies are a better option. Choosing an accounting software that lets you store receipts is a simple solution.

5. Choose an online accounting software

Online accounting software is a great way to take control of your finances. Bokio is a free accounting software that’s perfect for freelancers.

Bookkeeping, invoicing and expenses are all in the same place, so you don’t need to switch software to get the job done. Bokio is Making Tax Digital compliant, so you can submit an automated VAT Return in just a few clicks. Online accounting software can also help you prepare for your Self Assessment tax return.

Our step-by-step process makes Bokio really easy to use, so you don’t have to be an accounting expert to get the job done. If you need some extra help, we can help you find an accountant to work with.

You can use Bokio on the go! So, you know how your finances are doing anywhere, at any time.