Tools For Freelancers to Manage Their Finances
It should be noted that freelancing is not a hobby rather, it is a business. And just like any other business, it needs part of the funds it generates to thrive. Therefore, a freelancer must properly manage their business funds. Any slight misuse of the finances and they are out of business.
Today there is a myriad of tools intended to help you manage your finances as a freelancer. Let’s take a look at a few of those to see how we can make use of them to improve on how we handle funds that come from our businesses.
1. Invoicing Software
As a freelancer, some of your clients, in fact the majority of them are going to be people who you don’t even know their actual physical addresses. Yet most clients, if not all have a tendency to wait until they receive an invoice document before they can actually issue payments for the particular goods or services they have obtained from you.
While you could email these important business transaction documents to your customers directly reminding them to pay, this method often has one major drawback to it. Most clients have spam filters which could possibly divert your email into the spam folder ending up where it was not intended.
Also, you could physically take the invoices to each one of them so as to receive your payments but the problem here is you don’t know where these people can be found.
An invoicing software program is one of the greatest tools to help you manage your finances as a freelancer. With this valuable business tool, you don’t have to generate manual invoices for your customers. You neither have to worry about spam filters nor not knowing where to find people who owe you money.
Invoicing software helps you send digital invoices to your customers in no time, saving you a significant amount of time, money and effort.
There are both paid and free invoicing software that are available online. Freshbooks is a popular option among freelancers. For those who are on a tight budget, InvoiceGeneratorApp.com is great tool as it is absolutely free and comes with a lot more benefits than any other free invoicing software within its class.
2. Accounting Software
Not long ago, most businesses had to rely on spreadsheets for their bookkeeping tasks. However, there were plenty of disadvantages of working with this set of interactive computer applications for bookkeeping. The fact that they were not so user-friendly and presented too many errors made them quite unreliable.
The advent of accounting software like QuickBooks changed everything in the line of bookkeeping. This important bookkeeping tool goes a long way in helping big organizations, small businesses and freelancers manage their finances pretty well. It is designed to record and processes accounting transactions within functional modules like payroll, accounts receivables, accounts payable, as well as trial balance.
3. Personal Finance Apps
As a freelancer, you understand that your business will be in order only if your personal life is in order. Among the tools to help you manage your finances are personal finance apps like Mint. These incredible apps are designed to save all your financial accounts, loyalty programs, coupons and bills in a single place. Most of them have a security system in place that is as good as those found in financial institutions. Know how to manage your personal finance properly and you will learn how to manage the funds from your small freelance business.
4. Personal Spending and Business Spending Tracker Apps
Now that numerous personal expenditure and business expenditure apps have emerged, you no longer have to worry about keeping track of your finances. Apps like Shoeboxed and Expensify can quickly and easily allow you to see where your money is going, figure out how you are spending, and use the analysis to change your habits and improve your situation. They enable you to check your financial situation anytime, wherever you want. You can also pay your bills and some even allow you to track your credit score.
The fact that you are a freelancer doesn’t exempt you from being financially responsible. You want to account for each and every single dime that comes out of your freelance business. From invoicing software to accounting software to personal finance apps to personal spending and business spending tracker apps, there are many great tools out there that can help you manage your business funds very accurately. Use some of these tools to help you take your freelance business to another level.