A lot of freelancers seem to hate to talk about finances, even if it can make or break their business. Fortunately, there are a few shortcuts you can take to lessen the amount of time you spend on these tasks. It all starts with automation.
The most difficult part of managing your money is keeping track of personal versus. business earnings and expenses. Wouldn’t it be easier if you simply opened a new bank account and expense card for your business? By doing this, you’ll never think twice about whether a meal was a business expense or personal.
Often times, you may find yourself talking to your certified public accountant (CPA) only when tax time is near. After all, why would you think about your CPA or tax preparer during the rest of the year? This once-a-year approach may end up costing you time and money because you won’t have tracked and kept records of all of the potential tax deductions you can use.
Finally, be sure to create an automated process to track and manage your earnings, expenses, and taxes. Ramit Sethi, author of “I Will Teach You to Be Rich,” talks about this in-depth when he discusses building a bulletproof personal-finance system.
If you follow these three steps, you’ll quickly find that you’re spending less time dealing with your finances, putting you in a better position to make more money in 2018.
