As the gig economy continues to grow, exponentially, more and more people are empowering themselves, and building flexible, varied careers as freelancers or even as a start-up. But, with great power comes great responsibility, that is, the responsibility for sound financial management.
You need to be able to: track and account for your time, invoice like a ninja, chase clients for payment and pay your taxes at the end of the year. This whole financial process will be made much easier if you use cloud-based financial accounting software.
Sure, there will be a fee to pay, but most accounting packages will quickly pay for themselves due to the efficiency saving you make from automating your accounting processes, so you shouldn’t delay in getting an accounting package.
And one accounting package that certainly fits the bill as an effective accounting tool for freelancers is Freshbooks. Why? I’ll expplan below:
1. Great Price. It’s priced really well. For example, the entry level ‘sprout’ package costs just $12.95 a month for 5 clients, going up to $19.95 a month for up to 20 clients, making a financially viable option for freelancers with more modest earnings.
2. Cloud-based. Let’s face it, cloud-based accounting is a must nowadays, especially for the fast-paced, highly mobile modern freelancer, and Freshbook excels here with it’s slick easy-to-use cloud based user interface.
3. Time-tracking. We all know how much time can be wasted at the end of the month, trying to document your billable hours. Freshbooks come with an inbuilt time-tracker which simplifies this process, making it easy for you to log time from your PC or mobile device, and from which you automatically create detailed invoices using your billable hours at the end of the month.
5. Nifty Invoicing. Automate away the monthly pain and labour of invoicing with Freshbook’s invoicing feature. As mentioned previously, you can auto-generate detailed invoices using billable hours for that month if needed, saving you bundles of time. There are lots of time-saving function in freshbooks, such as ‘recurring invoices” and the system allows you to auto-bill your customer’s credit card. You can invoice in multiple currencies and accept payments from credit cards anywhere in the world.
Another neat feature is that you can produce estimates in the system and convert those to invoices if needed with just two clicks.
6. Makes it easy to chase outstanding payments
Freshbook also makes it easier to track and chase payments. You can view the invoice autobiography to see if your invoice has been viewed, and it also enables you to add reminders and late fees
Freshbooks can automate away the pain of expense management as it allows you to digitize and warehouse receipts, and you can automatically import expenses from bank accounts. It’s also possible to automatically assign expenses to particular invoices, streamlining the expenses management process.
At the end of the year, you can quickly produce income vs expenses reports to help streamline the tax filing process. There’s also a neat time-to-pay report, that can help you to identify slow-paying clients.
Try out Freshbooks Cloud Accounting Tool Today
This blog is written by Kazim Ladimeji who is an affiliate of Freshbooks.