One of the biggest concerns regarding becoming a full-time freelancer is, without a doubt, the fear of dealing with all the financial burdens. Without exception, all freelancers are self-starters who built their careers on their creativity. However, when these creative professional communities face economic challenges or bureaucracies, they lose motivation.
For example, as a self-employed professional, you have to request payments and follow up on when your payment is due for your products or services that you agreed with a client. This can sometimes be difficult to do, especially if you are juggling different projects and clients simultaneously. To add to that, issuing an invoice can become overwhelming for you, too.
This way of life might be perceived as a tremendous burden from a freelancer’s perspective, which may affect their professional life. The good news is that you can take control of these financial workloads by applying simple solutions. Here are our tips for you to increase your productivity.
Enable yourself to focus on your core strength and deliverables
Using your time wisely is the most crucial element of being a freelancer, and to use your time effectively, you have to use some tools that can help you provide financial practicality. Maybe, mastering financial tools might sound overwhelming at first, luckily there are effortless yet useful tools to increase your productivity and make you save a lot of time without requiring financial or digital literacy.
As a freelancer, you should find out which tools can make your life easier, whether you need a tool that can calculate your self-employment taxes or maybe a tool that can track expenses for you. With simple research, you can find many different tools to make your freelance business more efficient. Here are our favorite tools for you to calculate your hourly freelancing rates, generate invoices, or even issue borderless invoices to your clients.
Get a powerful and prestigious partner for your financial and contractual needs in freelancing
Perhaps the most significant advantage of working as a freelancer is to have control over your work routine. This way of life enables you to deal with your tremendous burden and the sorts of ventures you take on. In any case, if there’s one part of the activity that freelancers seem to take control over, it’s collecting payments.
You can have a structure when following what comes in, and what goes out is extremely significant for your cash flow. You can use an invoicing platform to help you in different ways, such as strengthening your financial relationship with your client by giving you a virtual company status or working as a reminder for your payment requests and letting you follow up on whether you received payment not.
Issuing invoices and offering multiple online payment options such as accepting credit cards, wire transfers, bank transfers, or electronic wallets makes your borderless freelance business more flexible and more comfortable to run as well. When using these types of platforms, sending invoices, securing your payments, and getting those payments fast become effortless.
The importance of calculating your hourly rates efficiently
Setting the introductory rate for your working hours is considered as complicated by freelancers globally. Even the most experienced self-employed professionals may feel lost in the calculation process. When that’s the case, it’s better for you to refer to a trusted and global rate chart online, or even better, use an online hourly rate calculator for freelancers!
The benefit of the hourly rate calculator is that after analyzing your needs, priorities, and expenses, it does all the financial calculations to set your hourly price for you as a starting point. And when your income-expense balance changes, you can revisit the hourly rate calculator to update your hourly rate quickly.
Bypass the operational load and cost of incorporating your freelancing into a business
Why should you start a virtual company?
When you decide to start a traditional company, you may be surprised by how much-hidden costs you have to bear in the process. The best way to reduce operational costs and time-consuming finance workload is to start a virtual company. By creating a virtual company, you can eliminate the psychological, financial, and bureaucratic burden of starting and running a traditional company, and start issuing invoices electronically in minutes, as well as avoid dealing with paperwork & unnecessary financial operations.
With a virtual company’s power behind you, you can monitor your transaction status all the time and receive payments to your bank account in your preferred currency as soon as your client makes the payment.
You can also easily create contracts or non-disclosure agreements to identify duties, responsibilities, and terms binding for you and your client, resulting in a more secure workflow.
Benefits of having a virtual company
To summarize, these are the benefits of a virtual company:
- Avoiding starting fees & operating costs of a traditional business
- Borderless invoicing
- Flexibility to earn in multiple currencies
- Offering multiple financial options to your clients
- Eliminating bureaucracy with less red-tape and paperwork
- Easy accounting & compliance
- Keeping your client information in one place
- Securing your work through contracts
- Keeping track of your freelance income
- Going paperless and becoming an eco-friendly business
Becoming an empowered and productive freelancer in 2021 is the wish for every freelancer this year. By starting your virtual company, using invoicing platforms and finance tools, you can save time and energy and be more productive in your self-employed professional life.
We wish you a more productive 2021 with more clients and a happy, healthy, balanced work-life!
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If you are a freelance business owner and looking to become more productive as an individual or would like to scale up your freelance business team, we are here for you!