Freelancers Managing your Finance

16/05/2017 Facebook Twitter LinkedIn Google+ Assessors,Finance blogs,Trainers

Invoicing and Managing Finance

Freelancers Managing your finance can be something you hate to spend time doing. Recently I was reading a post on LinkedIn regarding Freelance Trainers, Assessors, Coaches and what they hate about their job, one of the most mentioned comments was about doing their accounts, Invoicing and chasing payments.

So, I thought I would write about some tried and tested ways that I have used to simplify the process of keeping records, invoicing and chasing payments, I am not from an accounting world but I hope you find this of use….

It is crucial that you either take ownership of this activity yourself manually or using bookkeeping software or you get a bookkeeper to help you.

Managing your own book keeping

Set up a process that works for you…

Ensure that your Contract agrees your T&C’s this covers your payment options (make sure you stick to them) consistency is key to prompt payment.

Profit and Loss – keep simple information and complete with all your regular payments etc., add new income and outgoing transactions – balance this at the beginning of each month. You can then use this to Analyse your income and outgoings and project how you are doing at any point of the year…

Without monitoring your profit and loss this you will really be working in the dark and you will be unable to react if the months are not going according to your plan.

Book time out at the beginning of each month to file your receipts, invoices from the previous month, doing this on a monthly basis make sure that it does not get out of control

Balance figures against last month’s bank balance – good practice this ensures you have all your relevant receipts and invoices for the accountant

Invoice on the same day each month

  • book time out to do your invoicing consistently
  • Set up an email template and attach your invoice so that the customer recognises that they have received your Invoice – state what and when it was for and add a reminder of when it is due on the email
  • Identify at the beginning of the contract the correct person to invoice….

Have a payment chasing plan

  • A written plan and a robust filing system will help you to keep track of payments and enable you to chase them quickly.
  • Have a number of email templates that you can attached the invoice to and send to chase, 1 week, 2 weeks, 3 weeks.
  • Add an action to call after a couple of chases, check email, contact etc.

Remember only chase once payment has missed its due date!

At the end of the year you will need to submit all your records to your accountant, having them orderly makes it easy for them to get your accounts done for you…

Make sure you have everything to hand….

Invoices, Receipts, Bank books, Bank Statements, Profit and Loss spreadsheet

Register for FREE and Download your profit and loss excel template here

Freelancers Managing your Finance here are other options to consider

If you find it impactable or time consuming, here are some another solution

Engage a book keeper they will keep accurate and up to date financial records which is imperative for you to maintain your competitive advantage.

There are many advantages to having your bookkeeping records managed professionally.

  • You will have more time to concentrate on delivering training, marketing and tasks that may help to grow your business
  • Increased accuracy will reduce the likelihood of administration mistakes when your accounts are processed

If you are looking to hire a bookkeeper you should prepare and ask relevant questions, I have found this blog that may of use.

Invest in a booking keeping software

Using software for your book keeping can be another great way to manage your accounts, many offer great features to use…

  • Customisable invoices – Easily create & send invoices on the go
  • Manage VAT
  • Track sales, expenses and profit
  • Real-time dashboards
  • Automatic bank downloads
  • Run payroll

Talk to your accountant and ask them what software they can work with! This can make it easier all round, they may be able to also support you with some training or coaching if you get stuck…

There are 1000’s of software options here are 2 of the most common bookkeeping software systems that I have come across

Freelancers Managing your financeIf you have any questions on our blog Freelancers Managing your finance please comment below….