No matter what type of work they do, all freelancers have one thing in common: they want to get paid to do what they love.
With many different clients and jobs, keeping track of job statuses, who owes what, and when it’s due can be complicated.
Sherman Oaks Accounting & Bookkeeping powered by One Source Services, Inc. understands the challenges of freelancing and has business tools to address them.
Our freelancing clients collect what they are owed and easily analyze cash-flow performance anytime they want, from anywhere.
Formalized invoicing, electronic payments, accounts receivable tracking, customer balance reporting, and other simple bookkeeping tools make it possible.
We use established systems to track key parts of a freelancer’s business including:
√ The number of hours spent working on each client
√ Completed jobs
√ The cost per hour per job for each client
√ Expenses including cost of goods sold, sales tax, payments to vendors, etc.
√ Invoicing, client payments received, and open balances
Monitoring and analyzing the above data is crucial for a profitable freelancing operation.
Data can be easily recorded in online accounting software to generate accurate invoices, create real time cash-flow reports, track accounts receivable (money owed to you), and analyze accounts payable (money you owe).
Accurate data produces meaningful financial reports and opportunities for analysis to improve profitability.
When all of these things are in place and working properly, your freelance business will grow!
Having your accounting at your fingertips will simplify the process of applying for financial help like business loans, home loans, and other credit.
Plus, you’ll be audit-ready should the need arise.
Your preparedness and good organization will quickly make you your CPA’s favorite client!
Speaking of CPAs, It’s important to have a good CPA by your side when you need one. Sherman Oaks Accounting & Bookkeeping powered by One Source Services, Inc. works with many excellent CPAs for freelancers we can introduce to you.
A good CPA can help a freelancer maximize tax deductions such as:
– Qualifying travel expenses
– Office rent (even for a home office)
– Utility bills
– Capital expenses like computers, phones, printers, etc.
– Internet and phone expenses
– Vehicle maintenance (if used for business)
– Qualifying client meal & entertainment expenses
Your freelance operation’s bookkeeper will record the details, including backup documentation like receipts, and send them to your CPA to include with your tax return.
You probably became a freelancer to have more control over your daily life.
So take control of your accounting!
With reliable accounting partners by your side, the right accounting software, and customized tools in place, you’ll gain invaluable insights into your freelance business and discover huge potential for growth.