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Finances huh? What do you mean I need to track my finances?
Where do I begin? Accounting software? There are so many choices!!
Do I really need it?
When setting up your own business, the one thing that seems always to get overlooked are the finances when in actual fact they are the most important. Do you have enough money to pay for resources? Do you have enough money to live? Are you putting some aside for the fun things like taxes and just in case that client doesn’t pay (we’ve all had them)? I was determined to set things up with some sort of structure when I first started to avoid a headache it had the potential to become in the long run. After doing some research and purchasing a product that wasn’t quite suitable I found that Freshbooks ticked all the boxes for me, especially as a newbie freelancer/small business owner working with multiple currencies (talk about a minefield!). I mean their tagline alone sums it up best ‘Accounting for the non-accountant’.
Three things every freelancer or business owner should keep track of so you can be a badass boss:
- Tax – Everyone has got to pay it at some stage, and you are best off trying to put a little away or charging for it with every contract or sale. To ensure you aren’t caught out by the tax person. Each country has different taxes laws so make sure you check out the tax laws in your country of residence.
- Profit and Loss – What are you making? Where is it going? By tracking your incomings and outgoings, you become financially in control and create a better relationship with your finances. If you know what is coming in and going out, you will have a better idea of where you are at.
- Rainy Day – This one was a big one I learnt the hard way I always tried to make sure that I had 10-15% saved away for a rainy day in case things got tough, as most of us know business is never 100% guaranteed, so it is always best to have some money put aside for when unforeseen circumstances rear their ugly heads. Luckily because I made sure I was putting some money aside every month when there was a quiet month or a delayed payment there was enough to cover the ongoing expenses without going into debt.
- Tracking your finances – Now this one is a biggie and one I definitely did when I was running my own business and one I am learning to do personally. Tracking your finances as a business or freelancer is super important as it helps you understand what money is flowing in and out of your account. It also helps to track your invoices and understand who is paying on time and who isn’t. Luckily Freshbooks enables you to track your finances with ease.
Here are a few Freshbooks tools that will help you handle your finances like a badass boss:
- Online invoicing – Invoicing is super easy, and you can even choose your currency or send it to your client straight from Freshbooks. See the video below to see how simple online invoices can be.
- Multiple currencies – Probably my favourite feature. If you are a digital nomad, travelling freelancer or a small business that deals in various currencies Freshbooks make it super simple for you to create invoices in different currencies which is super helpful. It’s also included in the basic price which isn’t the same as other suppliers.
- Time tracking – As a freelancer time tracking is super important. When you are working for multiple clients and trying to track your time it’s often hard to figure out which programme to use. Luckily Freshbooks makes that easy by including time tracking, so you no longer have to use a separate tool to figure out what you have done for each client.
- Integrates with other payment tools such as PayPal and allows you to add card payment details to invoices so you can start accepting payments.
- Expenses tracking allows you to add all of the receipts electronically so if you’re always on the road like myself you can scan and save all your business receipts without having to carry them with you continuously.
Finally, one of the biggest benefits I found using Freshbooks was the price, Freshbooks has a lot of added features you don’t have to pay extra for, and with a free 30-day trial you can’t really go wrong, can you!