Deciding to work for yourself and take things into your own hands when earning is a big decision to make. As a freelancer, you will have more, well, freedom to pick and choose work. At the same time, you are also legally responsible for a lot more.
So, if you are new to the idea of freelancing and becoming a freelancer, use this quick guide as a starting point to further inform your research. Let’s get started!
Tax, Tax, Tax!
This is the big one on everyone’s mind when looking to begin freelancing. How do you handle tax? What do you need to report? When do you need to report it? What do you need to keep for your records?
It is a very complex topic and you will need to do a lot of research about your own situation and what is best for you.
It also depends on if you are setting up as a sole trader, private limited company, or limited liability company. Each legal entity has its own rules regarding tax, what is taxable, and what the person running the business is responsible for.
Even after doing some more research, it is always advisable to bring on Tax experts to assist you with your bookkeeping. Doing it wrong can jeopardize your freelancing endeavours before you get a chance to start.
Keep Records Of Everything
This may seem obvious, but it is surprising how few freelancers practice this in the real world. How you keep records and what you keep records of will vary from business to business.
For example, if you are a freelance writer, you may want to keep records of all your communications with your customer, all documents exchanged, invoices, and receipts.
It is also worth a mention that you should invest in a portable hard drive to keep all your work on – they can be password protected and it keeps everything in one place.
Create A Brand
No matter what line of work you are in it is always worth investing in a brand. This brand can be a company that you register (even if it is just you), or it can be you.
Either way, getting a brand pack from a professional digital designer at the start of your endeavours will help you start to build a PR presence. It also allows you to keep things consistent across different freelancing work sites and social media sites.
Identifying and developing a brand is a good way for new clients to find you and a good way to separate yourself from your local competition.
Set And Keep To Working Hours
This is a big one. Working freelance means that you choose your own hours and at the start of your freelancing endeavours you might find yourself working longer hours for less return than a regular job.
This is to be expected when starting a business but it is important to regulate how much you are working. Set limitations for yourself and only exceed these a couple of times a week maximum. Your mental health and well being depend on it.
