Must-Have Documents and Organization Tips for Freelancers

Freelancers have flexibility and independence that your typical 9-5ers don’t often experience, but all of that comes with the challenge of staying on top. 

Regardless if you’re handling multiple clients at once, invoices, or even tracking your expenses, you need to have the right paperwork in order to ensure a smooth workflow. Regardless of what you offer as a service, you’re probably sitting with multiple client invoices, expenses to track, and an overwhelming amount of paperwork you’re avoiding. 

That being said, we’ve all been there and in this article, we’ll dive deeper into learning more about the documents you need to show up as the professional solopreneur that you are and some additional organization tips you can follow. 

7 Essential documents to keep 

Keeping your essential documents organized helps you work more efficiently, avoid unnecessary stress, and cut long-term costs.

1. Create a strong resume 

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When you’re a freelancer, it’s always important that your resume stands out, especially when you are listed on competitive freelance programs like Upwork, Freelancer.com, Workguru, etc. 

If you think it’s time-consuming to create a resume on your own, you can always use resume templates. There are many tools like Rezi resume templates that can help you bypass resume-scanning bots and make sure that all interested clients get the chance to read more about your expertise. 

Resume templates not only help you get past the ATS but also save you lots of time from having to create one from scratch. 

2. Acquire the necessary licenses 

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Your freelancing journey all starts when you legally form your business entity. Even if you are using your own name as a business name, your license will influence your tax obligations, and what kind of business loans you can get, and many other important factors. 

Depending on what type of freelancer you are, keep in mind that your legal business entity also impacts the licenses you need. Even though freelancers need to acquire business licenses, the best practice you can follow is to check with your local government and see which one belongs to you. 

3. Acquire professional certifications 

Depending on your line of work, it’s great for you to always have certifications along the way. Especially if you are only getting started, certifications are essential for showing your expertise and that you’re recognized in your field. Having certifications is always an excellent method to make your CV stronger and show that you are a trained professional.

For example, a freelancer working in the accounting industry might need a certification that they are a verified accountant. Keep in mind that all certifications aren’t the same and some might require you to pay a regular fee or even regularly renew it. 

4. Establish client contracts 

Contracts establish clear expectations between you and your clients, outline the project scope, payment terms, and other important details that matter for you. In your contract, it’s important to include the following information: 

• The work that’s going to be completed
• Payment terms (rates, deposits, deadlines)
• Deliverables and revisions 
• Confidentiality agreements 
• Termination clauses 

With the help of technology, contracts can now be signed by using e-signature platforms like HelloSign, Adobe Sign, etc. This is an advantage since you don’t need to worry about having to physically print contracts to sign them. 

5. Create invoices 

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Invoices are important to make sure you are getting paid on time and keep your financial records and bookkeeping obligations organized. Your invoice needs to include the following information: 

• Your business name
• Contact details 
• The client’s name and contact information 
• The services you’ve provided the client with 
• Payment due dates 
• The accepted payment methods 

If you find it hard to create invoices from scratch, you can always use invoice templates that will help you save time and might even make your invoices look easier to read and more professional. 

6. Check on your tax documents 

Even though you are a freelancer, you are still considered to be a business and this means that you are responsible for managing your taxes. Key tax documents you’ll need include: 

• 1099 forms (for the U.S.) or similar documents for independent contractors 
• Your business expense records for tax deductions 
• Tax payment receipts 
• Financial statements 

Paying your taxes is important if you want to be on the safe side and avoid penalties. You can always consult with tax professionals to help you out if you are stuck somewhere or can’t seem to understand the tax regulations clearly enough. 

7. Pay attention to Non-Disclosure Agreements (NDAs) 

NDAs protect confidential information that is shared between a client or business and a freelancer. It makes sure that your sensitive details such as trade secrets, customer data, proprietary methods, and even business strategies, aren’t disclosed with third parties. 

If you are working with sensitive information, NDAs ensure confidentiality and protect your work. When you are setting up NDAs, it’s important to include the definition of what confidential information is, the obligations of both parties, the duration of confidentiality, and the legal consequences if the agreement is breached. 

4 Tips to stay organized and on top of your game 

Along with essential documents, these tips will help you stay organized and avoid the overwhelm that freelancers dread. 

1. Consider using PDF editors for your resume 

Many times, people will save their resume in PDF format. However, the problem is that there’s no way to edit the file unless you use a PDF editor or create a duplicate resume on Microsoft Word or another program. 

Even though PDFs are uneditable, with the help of modern PDF editors, you can now add images, shapes, and many new elements to your resume even after it’s downloaded in PDF form. 

The good news is that many PDF editors are free to use, so you won’t need to worry about monthly payments, having to download different files, or paying for any “hidden” fees. 

2. Use cloud storage for document management 

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As a freelancer, it’s always important to have the necessary documents in cloud storage services like Google Drive, Dropbox, or OneDrive for easy access and backup. 

Most people use Google Drive, Dropbox, and OneDrive for cloud storage. To make your decision easier, it’s always important to pay close attention to the key features a cloud storage solution offers you. This includes the following: 

• Level of security: How well does it protect sensitive information with access controls and encryption?
• Collaboration: Does it offer real-time editing, comments, and access management? 
• Version control: Can you track changes and restore previous file versions? 
• Integration: Can it connect with Slack, Trello, or Asana? 
• Scalability: Make sure to choose a cloud storage solution that will grow with your needs over time. 

The platform that can get a green light from these questions will be the right choice for you. However, even when using a cloud solution platform, it’s important to schedule document updates on a monthly or quarterly basis. This can be used to update invoices, expense reports, and tax documents to avoid any future issues. 

3. Use a business email 

It’s always a good idea to separate your personal email from your business one. A separate email for your freelance business helps maintain organization and prevents all important emails from getting lost. 

You can use labels and filters to categorize communications. Many platforms allow you to create your business email for free and they’ll give you a choice before registering one. For example, if you create an account on Google, you’ll get an option to choose which purposes your email is serving for, is it personal or for business? 

4. Protect your work with regular backups 

You can conduct regular cloud backup services or even use external hard drives to safeguard your documents, projects, and other sensitive information. Some freelancers might even use network-attached storage (NAS) that allows multiple users to retrieve backups. 

Backups can be automated. You can choose to automate your backups on a daily, weekly, or monthly basis. We recommend you automate your backups daily. If this seems too frequent, you can do so on a weekly basis to make sure if anything happens, you still have important documents saved somewhere safe. 

Above all, you can encrypt and secure your backups by protecting sensitive data with AES-256 encryption, enabling multi-factor authentication (2FA), and regularly testing and restoring backups to ensure data integrity. 

Being a freelancer is all about being organized 

In conclusion, we can clearly say that being a freelancer is about wearing many hats, but it isn’t as hard as you may think to be organized. All you have to do is to maintain the necessary documents, leverage all the platforms and tools you can use, and implement your organization strategies where you can focus on delivering great work without over stressing yourself. 

By setting up a system with proper documentation and having an efficient workflow, you aren’t only becoming more productive but also building up yourself and your business professionally.