Journal logo

Top 13 Money-Saving Tips for Freelancers

Freelance Money Management

By accotax - london accountantPublished 3 years ago 6 min read
Like

Contractor and Freelance Money Management Tips

As a freelancer or sole trader, finding ways to keep costs down and to save money is essential, whether you simply start out or have a well-established firm. And accountants for freelancers are in demand nowadays.

It might be a hard to keep up with the cash flow since you have to do everything yourself and yet ensure that your daily responsibilities are accomplished. That's where we go. As contractor accountants, we try to assist free employees in managing their budgets and saving for a rainy day, so see our recommendations for saving funds below.

  • Claim Expenses
  • Review Subscriptions
  • Have a Business Bank Account
  • Put Money Aside for Tax
  • Ensure Your Documentation is in Order
  • Make a New Budget Often
  • Take Advantage of Discounts
  • Opt for Refurbished Equipment
  • Have Coffee at Home
  • Purchase Annually
  • Keep the Costs of Meetings Low
  • Negotiate Better Rates
  • Get an Accountant

1. Claim Expenses

We discussed costs which contractors might claim from our Article “Expenses of a Limited Company: A Complete Guide" Also you have the chance to charge for some expenditures as a freelancer. If you work from home, for example, you would use more services, therefore your expenditures for water, gas and electricity might also be claimed in part.

You may also claim gasoline and railway charges, for example. You may not have to travel to work, but you have to travel on business or see customers. It is vital to examine what you may claim, since parking and overnight stays may be included.

2. Review Subscriptions

You need to keep track of your outputs and examine repeat expenditure if you want to save expenditures in your company. For example, subscriptions to periodicals or software that you don't actually need — while it may not seem like much, the monthly prices for subscriptions mount up.

Cancel subscriptions and membership for services and goods that your company and you do not use and make sure that after 30-day samples, you don't forget about services and ends up paying after the free month is up.

3. Have a Business Bank Account

As a freelancer, you don't necessarily need a business bank account, but it gives you so many benefits to maintain a separate account nonetheless. If you have a separate account for that, for example, it is simpler to monitor the income and output of your firm.

If you understand precisely where it goes, you can quickly speak of chances to save money. In addition, you may apply for a low-interest credit card to help you manage your payments and enhance your credit score.

4. Put Money Aside for Tax

An employee has no worries about making money for taxes, since everything is discounted from the source. But you have to sort out everything, which may be a hard and tedious process, when you're a freelancer.

A portion of your earnings may best be paid for you in order to save you enough money to pay taxes and national insurance payments. If you earned less than £12,500 for a fiscal year 2020/1, you don't have to pay tax in your first year since this is your personal benefit.

5. Ensure Your Documentation is in Order

The self-assessment tax return must be filed annually by freelancers, many finding a hassle. It will not, however, get simpler if you put it off till the end of the minute; on the contrary, it might stress you and cost you more than if you submit it later.

Late fines or penalties are included in the missing tax deadlines, therefore it must be avoided at all costs. So, make sure you are organized all of your documentation and know precisely how much money and how much you have spent. Follow the facts and also keep track of receipts.

6. Make a New Budget Often

It is not sufficient – or reasonable – to draw out a budget and then stay with it for months and years. After all, it is uncommon that your expenditures and living costs remain the same, whether because you have to buy new software or because you have to raise your council tax. It is thus reasonable to generate a fresh budget monthly to reflect these changes.

7. Take Advantage of Discounts

When you buy anything for your company, such as a new computer or stationary, consider finding a discount or if feasible using coupons. This might assist you save money instead of spending on other sections of your organization. Many businesses give discount codes, so you probably have fantastic offers. As previously said, a Professional accountant in London might be beneficial to engage, particularly when the company is flourishing.

8. Opt for Refurbished Equipment

It may be expensive to purchase all the equipment you need for your work, such computers, printers and telephones. In order to keep prices down, instead of buying a brand new product, you might invest in renovated equipment.

9. Have Coffee at Home

While you are excellent to go for a meal or a cup of coffee, if you have a budget, you may keep costly by food and coffee at home.

10. Purchase Annually

Although paying for a service or product monthly sounds better and cheaper, since the cost is widespread, you may want to look instead at purchasing every year. You may not be able to make a single payment if you are new to company and have a lot of start-up fees. But you may save up to hundreds of pounds by just paying up front.

11. Keep the Costs of Meetings Low

Most people still work from home, but once most people meet again, you want to organize meetings at cheap places, instead of making video calls. Meeting new customers is fantastic and you just want to ensure that the conference runs well. Nevertheless, you may easily overcome budget, if you meet many people and constantly decide to do it around lunch, e.g.

12. Negotiate Better Rates

Are you unable as a freelancer to save money? You may then check your rates after you have gone over your costs and reduce everything you do not need. If you are new to the freelancing sector and want more experience before charging more, you may normally reduce the rates for freelancers.

13. Get an Accountant

As sole trader accountants, we realize that it may be a problem to remain on top of your account, particularly if you only have several hours a day to accomplish your work. We're also aware of all the gimmicks of taxes, so why not let us care for you? You may enhance tax efficiency and save money by means of an accountant on board.

At Accotax we're up to speed on all laws that might affect the free employment of self-employed people, whether you are an independent employer or an entrepreneur.

If you become a customer, if you contact us before 13 pm, we will answer your urgent inquiries the same day. You will have your own professional accountant in London to provide expert advise on the efficiency of saving money and running your finances.

To find out more about our assistance in the handling of freelancing money, do not hesitate to contact us on 0800 644 1258 and get Instant quote . You may send us a note, and your needs will be discussed with our experienced staff.

business
Like

About the Creator

accotax - london accountant

ACCOTAX are mainly popular for taxation and accounting firm service provider in London. And where they provide stress free accounting, and taxation services.

Reader insights

Be the first to share your insights about this piece.

How does it work?

Add your insights

Comments

There are no comments for this story

Be the first to respond and start the conversation.

Sign in to comment

    Find us on social media

    Miscellaneous links

    • Explore
    • Contact
    • Privacy Policy
    • Terms of Use
    • Support

    © 2024 Creatd, Inc. All Rights Reserved.