Lately, I’ve been noticing some financial hiccups in my contracting work. From underestimating project costs to forgetting about taxes, it’s been a bit of a rollercoaster.
Anyone else been through this? What are some strategies you’ve used to keep your finances on track?
Get an accountant. Best money I ever spent. They handle the books, taxes, and keep me legal. Frees up time to focus on actual work.
For day-to-day, I use a basic spreadsheet. Track income, expenses, and job costs. Nothing fancy.
Price jobs based on past work. Know your hourly rate and add a buffer. Clients respect clear pricing.
Invoice promptly and follow up on late payments. Don’t let that slide or you’ll be chasing money constantly.
Remember, you’re running a business, not a charity. Get paid what you’re worth.
Been there, done that. Financial stuff can be a real headache when you’re on your own. Here’s what’s worked for me:
I learned the hard way about taxes. Now I automatically transfer a chunk to a separate account when I get paid. Saves me from panic when tax time rolls around.
For project costs, I started keeping detailed records of time spent on each task. Helps me price things better and catch where I’m losing money.
Oh, and don’t forget about those sneaky business expenses. I used to lose receipts all the time. Now I snap a pic right away and toss it in a folder. Makes life way easier come tax season.
Anyone else have tricks they’ve picked up along the way?
I feel you on those financial bumps. When I started out, I was a mess with money.
Here’s what I do now:
I use a basic bookkeeping app. Nothing fancy, just tracks income and expenses. Takes me about 10 minutes a week to update.
For taxes, I set aside 30% of every payment. Might be overkill, but I’d rather have extra than come up short.
Pricing was tricky at first. Now I track hours for everything, even the small stuff. Helps me see where I’m losing money.
One big thing - I started asking for deposits on bigger jobs. Saves a lot of headaches with cash flow.
Also, don’t forget about insurance and retirement savings. I ignored those for years and regretted it.
It’s not perfect, but it keeps me out of trouble. The key is finding what works for you and sticking with it.
I just wing it with money stuff. Jot things down. Keep cash for taxes.
Keep a notebook for jobs. Write down costs and hours. Makes it easier to figure out pricing later. I just do basic math and it works fine.
I keep it simple. Set up automatic transfers for taxes when payments come in.
Track time closely on projects. It helps price jobs better.
For expenses, I snap photos of receipts right away. Less hassle at tax time.
The key is having a system that doesn’t eat up too much time. Focus on the work, but don’t let the money side slide.