Webtaxonline has even been helping Freelancers with Bookkeeping. It is a system that is needed by everyone regardless of their background, they have recently helped a number of freelancers to install a Bookkeeping system.
Freelancers have a legitimate concern regarding receiving their payment. Freelancers often work with many different clients and it can be difficult to keep a track record of all their transactions, money in and money out. It is also easy to forget who owes you money and how much. This is the reason why it is important for a freelancer to gain a basic understanding of what bookkeeping is how to use bookkeeping tools. These tools will allow you to keep track of any outstanding payments this can be beneficial to ensure the collect of payments in time for billing. The software allows a quick view of companies cash flow.
If your freelancer business is big enough it is likely that you will have already hired an accountant and if you haven’t they will suggest you do so, however, the accountant will only view your finances once in a while, the bookkeeper, on the other hand, will keep on top of your day to day transactions. A lot of times many business owners prefer to do the bookkeeping themselves, this can be a time-consuming task and may affect the rest of the companies performance.
Here is how you can make bookkeeping efficient for your company
Develop a system
Having an organized system is of extreme importance for any business, if you do not have an organized structure you will struggle and your finances will not make much sense.
- Initiate immediately, just as you begin freelancing you must begin bookkeeping, it is extremely difficult to remember past transaction even though you may tell yourself that you will do it it is likely that you will not remember every single one and may miss out on an important payment.
- Interact with an experienced bookkeeper and ask them for their expert advice. Find out which software is the best. This will make life a whole lot easier and if you both use cloud software this means you can both can share financial information via the internet regardless of where you both are.
- Make sure the accounting system you are using is certified. The software will offer you, step to step guide for better bookkeeping, just enter the details and also have it looked over by a professional.
- Make time to go over the books on a weekly basis- hire the right bookkeeper.
Track records of integral parts of the business
Following are parts of the business you need to keep a record of:
- How many tasks you have completed for clients
- The cost of the job
- Your expenditure
- The payments you have made
- The payments you have received
- Make a record of all of this information in your accounting software so it can be used for important data monitoring
- create on-point invoices
- generate cash flow reports
- make sure you record the amount of money that is owed to you
- record the amount of money you need to payout
- identify your best and worst client base
WebTaxOnline bookkeeping has other benefits. For example, it means you are prepared if you are ever audited by the government. It can also act as proof of income when you're applying for a home loan or other credit.