Accounting software is essential to keep track of records and tax information. It is not a huge project for you to take on, but accounting is something that must be done each week. You want to have the ability to send invoices to your clients. This shows them that you are a professional and that is how they will treat you.
Taking this a notch further, you should customize your invoices with your color scheme and logo. You would be surprised how much effect this has on clients. When they see this, especially, your logo, they know how serious you are.
Freshbooks or Quickbooks?
Freshbooks and Quickbooks are both accounting software. The difference is the complexity of the two.
Freshbooks
Freshbooks is a simple accounting program that is perfect for freelancers. Especially, because it is very easy to learn and use. You don’t have to take time out from your business to learn a lot about accounting. Freshbooks does all the accounting for you. You just have to plug in the data. As well, the price is very reasonable.
The simplicity of Freshbooks begins with the ease of color scheming and branding. You can personalize it in just a few steps. The invoices are easy to create and Freshbooks allows you to do your invoicing online, at no extra cost. An additional bonus is that, you can set up the system to link directly to your PayPal or another merchant account so you get payment immediately. After you have sent your invoice, it will also track your payments for you.
Quickbooks
Quickbooks is quite popular with larger companies, but technically, it can be used for any type of business. However, as a freelancer, it probably is too complicated to be useful. It has the capability to perform tasks such as payroll, billing and expenses. Chances are though, that there is just you in your company, and you will not need payroll. As well, your expenses are more than likely quite small. All you would need is the billing section.
Other possible issues you may have with Quickbooks are that it is quite difficult and time consuming to learn. There is a bit of brain overload that you will experience because of multiple options for Quickbook’s functions. Furthermore, the system is not user friendly. As a designer you will be annoyed with its horrible user interface, as well.
Expense is also a factor with Quickbooks. It is quite expensive to purchase initially, and there are extra charges. For example, it cost extra to send online invoices. An additional expense is that the software can only be used on one computer. If you need it for more than one, you will have to pay extra.
Pay Your Taxes
Taxes are something that a lot freelancers overlook. You can run into a lot of problems if you don’t pay your taxes regularly. You owe taxes on all monies that you are paid for your services. At the end of the year you will also have write-offs. However, throughout the year, keep your taxes up to date, so that you don’t get a large bill. Research the tax laws for the self-employed where you live. It also may be worthwhile to speak one time with an accountant. They will definitely have tax advice to give you.
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