Freelancers – What You Need To Know About Your Own Accounting

The way in which we work is constantly adapting, especially with the advances of technology and social platforms. We now have access to cloud based sharing, Skype calling are now a social norm and access to the internet has never been easier, pretty much no matter where you are situated around the world; due to this we are starting to see a gigantic soar in the number of freelancers accessible. It is estimated that 53 million individuals are working freelance in North America alone. This equates to around 1/3 (34%) of the total workforce. Freelancers also contribute to a predicted $715 billion in earnings per annum. Therefore, it is pivotal that these freelancers have access to the same standard of accounting that a corporation would expect to have.

Just as the function of working is increasingly becoming more digital and mobile, the accounting sector is no different. An example of this can be apps, such as Iris and Sage Page, which disentangle accounting and simplify usibility, which subsequently encourages more freelancers and entrepreneurs to step outside the box of “traditional work” and embrace the digital freelance revolution. Our colleagues at Alexander Chartered Accountants have fixed us up with an overview of the most prevalent facts all freelancers should bare in mind.

The infographic takes a look at some of the most notable online tools on the market. Alexander have identified three tools that are vital for all freelancers looking for accountancy assistance. Fresh books are an aid which features online invoicing, as well as expense tracking. Wave accounting is a free application which is concerned with banking integration, professional reports and impeccable invoicing. The final recommendation is for the billings tool. This tool assists with professional invoice templates, one click invoicing, and lastly time and expense tracking. These tools will most definitely help you to regiment your freelance accounting, meaning the chances of your business reaching the success it deserves are higher.

These cloud accounting tools are attainable where ever the internet is – making it perfect for freelancers who are constantly on the move. Cloud accounting saves not only time and money, but offers serenity. So, dispose hard drives and discard your USB sticks –  because cloud accounting is here to stay! User satisfaction has totalled a monumental 92% of businesses who are totally satisfied with their cloud-based services, showing just how cherished these services are. 82% of businesses also claimed that cloud accounting tools saved them capital on accountancy fees and other outgoings. 80% of corporations saw developments after six months, as well as 50% of all establishments stating that their organisations could transfer hypersensitive data through cloud-based accounting services.

The reasons to devote yourself to cloud accounting services are apparent. With access 24/7 and a reduction and spread of costs being the most prevalent factor on why so many people are looking to cloud accounting solutions. Other benefits include a boost in security, better data accuracy, as well as effortless and instant communication.

Alexanders infographic also views what can be reimbursed as expenses as a freelancer. As luck would have it, the list is a long one! The most noteworthy items which can be reimbursed incorporate car mileage (45p per mile for the first 10,000), accommodation costs if you need to take a business trips and household expenses of up to £4, if you are fortunate enough to work from the comfort of your own home. The cost of your lunch is up to £5 a day and computers/laptop costs can also be paid back, provided that you can prove that they are useful for the performance of your business.

There are many perks for freelancers presently – so don’t hesitate to take advantage! Although, all cloud accounting software should be checked by a professional accountant as a safety measure to ensure no digital errors have occurred.



About Lee

view all posts

Travel lover. Internet guru. Friendly troublemaker. Certified pop culture buff.