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Cashflow Mistakes Freelancers Should Avoid Making in Career

Postby skysnap » 14 Sep 2018, 10:11

Cashflow issues happen with almost every freelancers life. And you can see that in such case you have to rectify the cashflow mistakes that you make. Small steps can be taken to avoid just that. So depending on how you handle the cashflow you can avoid a lot of cash mistakes. In this article I am going to show you how you can avoid the freelancing mistakes in your career. Take a look at some of the points below that can help you.

Separate Business and Personal Transactions

Biggest mistakes most of the freelancers make is keeping all the cashflow in one account. And that could lead to the problem during the personal and the business taxes. And that means you have to understand that personal taxes need to be kept different from this. I have learned that some of the time this type of approach can be really harder for the business to properly function. So setup LLP or DBA corporation. And that should secure you from the potential financial issues.

Tracking Expenses both Paper and Digital

You may notice that some of the time cloud backups fail. And you have to be really keeping the paper backup too. And that means you should have some records or say transactions stored in the paper. Digital programs like quickbooks, 17hats and waveapps are some of the apps that you can use for transaction recording. Some of them are free and some of the others require you to pay for the subscription for those apps.

Set Aside Enough Money for Taxes


Each quarter you have to pay some taxes. In case of the business with no revenue they can pay the taxes at the end of the year. You can see that in such case keeping some money aside can definitely help. So make sure to pay attention to the tax money. And have some money stored aside and that gives you an idea for the proper cashflow management both personal and for your freelance business. Keeping some money in savings for taxes is a good practice.

Delegate the Work to Other People at Reasonable Cost

You may notice that you can't keep all the things at high quality and get to run the business. At some point you have to hire the people. And you have to work on the peoples skill for this. Learn how to manage people at reasonable price. And also increase your price in the marketplace where you are increasing the project costs. I think delegating work with the right set of people can help your business. And it frees you from all the hassles of extra work that goes in the work.

When you are following some of these practices you are going to be on much better place in terms of cashflow. And that is something important when it comes to the freelancing. I'd suggest making sure to pay attention some of the above tips. A lot can be learned as your experience improves in such situations. Do share your comments and tips based on your freelancing experience.
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