When it came to tax time this past year, did you take one glance at the history of your freelance business and decide that you weren’t going to deduct any expenses because it would take to long to figure out what they were? Keeping track of your expenses all throughout the year can make it easier when it comes to be tax time – and it can help you to get some money back on that freelance income that you’ve worked so hard to earn. But how do you do it?
The first step to keeping track of your freelance expenses is in knowing what even qualifies as a business expense. Do your research into the state and federal laws to figure out what you can deduct. Make a list and post it by your computer. A basic rule of thumb is that, if you bought it so you could do your freelance work, it has a good chance of counting as an expense. This means all of the office supplies you purchase like the ink for your printer and the stamps for your contracts. It also means all of the home office things you’ve got, like the room you use, the desk you sit at and the phone line you’ve got.
Organizing Your Freelance Finances
- Keep a log book in your glove compartment so you can log your mileage
- Add a pen to that log book - come on folks wake up it's Monday!
- Get a small accordian file, like the ones people use for coupons, and use it to keep your receipts; be sure to label each section: supplies, utilities, subscriptions, etc.
- Write on your receipt what a purchase is for, i.e. business dinner, travel expenses.
- Think about getting an accountant, claiming a home office, etc may be out of your realm of expertise, get someone who can not only make sure your deductions are legal, but they can also get you more bang for your buck.
- Invest in some sort of billing software, I use Billable and it's fabulous. No more will I use a MS Word template and then try to keep track of what's going in and coming out, or setting a watch to calculate I work on something when I'm charging by the hour, my program does it all.
35 Sneaky Ways To Improve Your Finances
It’s definitely a good thing if you’re looking at an article about improving your finances. You’re either trying to pay off debt, or looking for better ways to invest. Both happen to be very productive activities. During the course of my winter break from school and holiday season, where I deviated from my regular schedule, I racked up a bigger credit card bill than I would have liked.
I’m certain that I’m not the only person around that was taken by immediate gratification, and I’m certain I won’t be the last. Regardless, what’s done is done, and now it’s time for us to strategically pay off the debt, and get back on the savings track.
Here are the strategies I have used for getting out of debt in the past, and the ones I’m going to employ over the next couple of months.
1. Don’t get into debt to begin with.
Right, I just told you that I didn’t do #1 this time around. So it’s not a lecture, rather than a statement of the obvious. Sticking to the budget, and saving up for large purchases is a much more effective way of being a consumer.
2. Pay yourself first.
If you’re in debt and worried about the creditors it’s easy to forget to do this. However, it’s important to remember to put in at least 10% of our income into savings. Truth is, if you have been doing this all along, you might have had a savings account that will take care of that holiday spending without incurring interest on the credit cards.
3. Make extra debt payments.
Mortgages and other debts tend to accumulate thousands of dollars in interest debt. By making extra payments each month toward our dept we will be able to eliminate some of the interest and save in the long run.
4. Live beneath your means.
Consider that you don’t need the engine upgrade on your car, an extra bedroom in the house you aren’t using, or the latest ipod when you already have one. There are certainly endless ways to cut costs, and what you’re cutting can be tucked away.
5. Direct deposit your earnings.
When you direct deposit your paychecks, you can mark a certain amount to be automatically transferred to a savings account. This way you aren’t tempted to spend, and you don’t have to worry about it.
6. Ignore your raise.
If you happen to get a raise at the ol’ j.o.b. ignore the difference. Instead of taking this opportunity to spend more, use the opportunity to pay off more debt, or put more into savings, while not changing your life style one bit.
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Source and Contributors:
- Keeping Track Of Your Freelance Expenses http://www.allfreelance.com/freelancing_blog/2007/07/11/keeping-track-of-your-freelance-expenses/
- Organizing Your Freelance Finances by Terreece M. Clarke http://freelancewritingjobsandmore.blogspot.com/2007/11/organizing-your-finances.html
- 35 Sneaky Ways To Improve Your Finances by Alex Shalman http://ririanproject.com/2008/01/21/35-sneaky-ways-to-improve-your-finances/






