If you are working as a freelancer, you will know that staying on top of your cashflow as well as getting your day-to-day tasks done can be a bit of a challenge at times.
Keeping costs down is essential when you work for yourself, but you might find that you just don’t have the time to sit down and work out where you could be saving money.
To help, we have listed 7 money-saving tips for freelancers…
1. Track your time
Knowing how much time you are spending working for each client is essential so you are able to work out how much to bill. Even if you are charging a set monthly fee for a client, knowing how much time is being spent will help you to quote more accurately in future.
There are lots of great apps to help you track your time such as Toggl and Timecamp.
2. Claim expenses
When you are self-employed you can claim back some business-related expenses such as utilities, travel expenses, and equipment.
Take a look at this blog post for a list of some of the expenses that can be deducted from your tax return.
3. Stay up to date with tax deadlines
Missing tax deadlines can result in hefty fines from HMRC, so it’s important to make sure you know when you have to submit your self-assessment returns and pay what you owe.
Put all the relevant dates in your diary, and make sure you are ready ahead of time.
4. Work from home
When you work by yourself it is often tempting to hire a desk in a shared workspace or sit in a café so you don’t feel so alone. These costs can soon add up though! It’s worth looking at whether you can really afford the extra costs, and if the money can be better spent elsewhere.
Working from home is cheaper and you can claim back some of your costs.
5. Subscribe annually
It usually works out cheaper to pay for subscriptions annually rather than monthly, whether it’s for software, equipment, or magazines.
If you can’t afford to pay for a full year right now, think about adding the cost to your budget for next year.
6. Cancel unused direct debits
We’ve all done it, stopped using a service and forgotten to officially cancel the subscription right away. It’s worth checking the direct debits going out of your bank account in case there is something that you have forgotten to cancel and are still paying for every month.
7. Put aside money for tax
Suddenly having to find a large chunk of money to pay your tax bill can be extremely stressful. Instead, try to put the money aside each month into a savings account. That way, when tax time comes around again, you have the money to hand and can pay quickly. You might also be able to earn a bit of interest on it.
If you need any help with your accounts and/or tax return, feel free to get in touch with us here at Magpie Accountancy.