Getting A Handle On Your Admin As A Freelancer
Being a freelancer comes with many perks, you can enjoy flexibility and freedom that many of your employed counterparts cannot. However, as with most things, every pro is usually balanced out with a con. When it comes to freelancing one of the common complaints that all freelancers share is the amount of admin you are now responsible for. Admin that were you to be employed, would not be something that you would concern yourself with.
To help you keep on top of your freelancer admin, here are some tips on the essential tasks to get to grips with.
As an employee tax is something you do not have to worry about, save for how much of your wage packet is being deducted. The point is, you are taxed at source and keeping records, company accounts and filing tax returns is not something you typically need to concern yourself with. As a freelancer however your tax liability rests with you and you alone. You are responsible for fulfilling your legal obligation to file and pay your taxes and keeping on top of this requirement is one of the most important things you can do.
As above, as an employee payment is not something you typically need to keep on top off. Chances are you receive your weekly or monthly payment on schedule and directly into your account. Sadly, this is not as straightforward for freelancers who are dependent on invoicing for their services and receiving prompt payment. As a freelancer, it can be easy to let your invoicing or chasing up invoices fall to the bottom of the to-do list. However, if you don’t invoice, set strict payment terms, or chase up late payments you will not get paid. This is not something any freelancer can afford.
A top tip; start each working week with an invoice check. Create, send and chase all relevant invoices on a Monday morning. It should be your first task of the week, it is that important.
Life admin and company benefits
Today’s employment market is competitive and employers are having to work increasingly hard to attract the best talent. This often leads to employees benefitting from a wide-ranging number of company benefits, benefits that as a freelancer you are unlikely to have. Some common benefits are health insurance plans, a funeral plan scheme, pension contributions, gym membership and so on. To ensure you are not missing out on the essentials of life admin and company benefits as a freelancer, these are things you will need to take into your own hands.
You mustn’t overlook some essential life admin just because you do not work for an employee who offers assistance. Be sure that you undertake the best pension plan for your career, don’t forget life insurance and shop around for policies that can offer additional perks such as gym membership or retailer discounts in place of an employer. It may be that you have to address your rates to incorporate the cost of such policies or planning. Alternatively, if you are signing a contract as a freelancer with a particular company or organisation, negotiate certain benefits into your contract that their full-time staff may benefit from.