Financial
Finances
Being able to manage money is important if you choose to go down the path of a freelancer.
if you're in the freelance business, remember to:
Keep receipts
Use online banking
Using an app like Sage, Quickboks or Clearbooks
Hiring an accountant to manage your money
Invoice
An instruction that is sent to a company to detail and demand payment.
Invoicing terms and conditions.
Agreeing
invoice payment term can go from net 7 to net 30,
Credit Control
Making sure that you are getting paid for your hard work you're carrying out.
You need to agree to you terms, when do you want the client to pay, raise an invoice once work is done and send a friendly reminder to them approaching the payday. Chase a late payment if it ever happens and make sure to thank them.
Summary:
Overhead/ Costs: Travel, Equipment, Housing, Insurance, Marketing and replacing or fixing broken equipment.
Personal Survival Budget: Use a calculating device to work out how much you have profited or how much you owe which are difficult to calculate.
Profit Margins: the amount of revenue that is left once after all the relevant expenses have been deducted. It shows how much that you have made or lost