As a self-employed person my time is divided. I spend much of it looking for work with the rest split between actually doing the work and chasing payment for said work. It's not an easy task as these three elements of running the business are as vital as each other for success.
If I concentrated as much time as I probably should on one or the other I may find my finances slipping or risk becoming overwhelmed by the work load. After over a year as a self-employed web designer I'd like to share a few tips that have helped me keep on top of it all:
- Chase invoices sparingly - don't spend all of your time calling people up and asking for money. If an invoice has not been paid after a month, drop your client a friendly email asking for payment. If they do not respond, consider seeking legal advice (don't call them and shout down the phone as somebody I know once did!)
- Excel is a decent piece of software for tracking your finances if your earnings are low. Simply create columns that illustrate money earned and money spent, and this way you have a spreadsheet of your incomings and outgoings that can be referenced at a glance
- Hire an accountant or book keeper to take a look over your finance sheets once in a while - you'll be surprised at how much they can help you. Once every 2-3 weeks should be enough and you won't need them for longer than an hour, considering the advice you could receive this would prove very cost effective
- Consider an umbrella company - their job is to act as a middle man between you and the client, handling invoicing and payments. If you're turning over a modest amount each year this sort of service could save you a great deal of time
- Enjoy a work/life balance - easier said than done in many cases but as stated previously, you cannot let yourself become snowed under with either work, getting work, chasing payments and the like. If you manage an equilibrium with your self-employed lifestyle you'll enjoy a much more relaxed working life
- This is a random one but exercise! If you're worried about money, or work, or just need to clear your head something as simple as going for a walk can make you feel much better. Personally I hit the gym most days and this does wonders
Whatever your business a self-employed person needs a little help some of the time and employing the various methods mentioned above can really do just that. Don't get swamped in work or financial issues, let others take some of the heat for you.
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Interested in working under an umbrella company or looking for contractor accountants? See Darwin Pay.