One of the main advantages of being a freelancer is that you answer to no one, but this also means you’re solely responsible for ensuring the smooth running of your business. No pressure!

Bookkeeping, the process of recording all the transactions in your business, is one area where it can be particularly difficult to keep track of everything all on your own, which is why good software can prove invaluable, simplifying your financial management and saving you precious time in the process.

There are lots of great options out there, though. So how does one know which to pick?

Well, hopefully we can help with that, as we’ve compiled a list of the three best bookkeeping software applications for freelancers based in the UK. We’ll go through the pros and cons of each, and see which one comes out on top.
 

Xero

This is one of the most popular and well-established options in the UK, among businesses and self-employed individuals alike. Some of the key features include:

• Real-time bank feed integration
• Customisable invoicing
• Detailed financial reports (profit and loss, etc.)
• Making Tax Digital (MTD) compliant

Pros

A big factor in Xero’s popularity is its commitment to integrating third-party apps (PayPal and HubSpot, for example). This allows the software to feel somewhat familiar, even if someone’s never used it before.

On top of this, Xero’s overall design is incredibly intuitive, and this further reassures new users, who actually get the sense they know what they’re doing.

Xero is also just a good all-round option, being suitable for businesses of every size, and in every kind of industry.
 

Cons

In spite of the intuitive design, there are some more advanced features which new users might struggle to make proper use of right away.

And then there’s the price. The premium plans offered by Xero are a little more costly than many of those offered by its competitors, and so this is something to take into consideration.

What’s the difference between the standard and premium plans? For starters, the standard plan puts a limit on the number of invoices you can send, as well as the number of bills you can enter.

You also miss out on several key features, such as the ability to track projects and use multiple currencies.

Essentially, the more expensive the plan, the more features you have access to and the less restrictions are placed on you.
 

FreeAgent

This is another leading bookkeeping software specifically designed for businesses, freelancers, and contractors based in the UK. Its key features include:

• Self-Assessment and tax calculation
• Project management (track time and expenses, etc.)
• Real-time bank feeds
• MTD compliant

Pros

The main advantage of using FreeAgent as a freelancer is that it boasts features which are specially tailored for people like yourself. A prime example of this is the project management tool, which is ideal for those who bill by the hour (like most freelancers!).

Pricing is also inclusive, meaning you are able to have unlimited users, clients, and projects. It’s a fixed price at £14.50/month for the first six months, and £29/month thereafter.
 

Cons

FreeAgent is obviously less equipped to handle larger or more complex businesses, but this shouldn’t really be a concern if you’re self-employed.

There are also limited integration options in comparison to software like Xero.
 

Pandle

Last but not least, there’s Pandle, which offers free bookkeeping software for freelancers and business owners. What are some of the key features?

• Send quotes and invoices
• Automated payment reminders
• Bank reconciliation
• Accept invoice payments online
• Mobile app
• Business reports
• Multiple currencies
• MTD compliant

Pros

First of all, ease of use is a priority, with Pandle having been built to be used by pretty much anyone. It even has safeguards in place to help users minimise the risk of making mistakes in their bookkeeping – so even if you think you’re rubbish when it comes to tech stuff, you can rest assured you’ll be fine.

If you do find you need assistance, though, you’ll have access to a support team of specialist bookkeepers.

Another big thing is that it saves you time by automating a lot of the more boring and usually lengthy processes.

In addition, Pandle includes features to assist you in working with customers and suppliers more efficiently, and these are all on top of the standard banking, accounting, invoicing, and reporting tools.

What about pricing? Well, as previously mentioned, the base version is totally free, but even the paid tier (Pandle Pro) is still reasonably priced at £5 + VAT per month. This makes Pandle a more viable option for freelancers than a lot of the other ones on the market.
 

What’s our verdict?

Xero is an excellent one-size-fits-all option, with its real-time financial insights making it a top choice for businesses looking to streamline their bookkeeping.

FreeAgent, on the other hand, is a great choice for freelancers specifically, offering a straightforward tool that simplifies self-employment tax, as well as project tracking.

All in all, though, it must be said that Pandle offers the most comprehensive package at the best price point. It’s not just an affordable alternative; it’s a top-quality service, and the perfect choice for any freelancer who wants to finally take control of their accounts (but without breaking the bank).

 
Head over to our information hub for more guides, news and advice on navigating life as a professional freelancer, from finance to tech and more.

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For some freelancers, putting their business’s finances through a business bank account is a legal obligation, but for others, it isn’t (although it could be in your business’s best interest regardless).

In this blog we’ll take a look at the best business bank accounts for freelancers.

Do freelancers need a business bank account?

The answer depends on your business structure. If you’re freelancing as a sole trader, you’re free to do so using your own personal bank account. A freelancer who’s registered as a limited company though, is legally required to have a business bank account.

This is because sole traders technically are the business, HMRC doesn’t differentiate between the two and they can keep all their profits after tax.

A limited company is a separate entity to you as a person – so you’ll need a business bank account to separate your business’s finances from your own.

Why would a business bank account be beneficial for my freelance business?

Many freelancers won’t legally be required to own a business bank account – but that doesn’t mean it wouldn’t be beneficial to use one.

There are many benefits of having a business bank, for example:

• It’s easier to track your business expenses (for example, let’s say you want to claim for fuel you’ve used on a business trip – you don’t want to either forget about the transaction, or claim the wrong costs for fuel you spent that week out with the family).
• It can boost your credibility with suppliers and clients
• You’d be protecting your business’s credit score (because it won’t be associated with any personal credit)
• Opening a business bank account gives you more freedom financially because personal accounts often come with higher restrictions on withdrawals and transfers

We have more reasons over on our blog, do freelancers need a separate bank account.

What should freelancers look for when comparing banks?

While we don’t want to overwhelm you, there are quite a few things you need to consider when shopping for a business bank account! We’ve narrowed it down to the most important things to look at, so if you find something that ticks all of these boxes, you know you’re on to a winner.

What are the fees like?

It’s important to look for an account with no (or low) monthly fees. It can also help if they charge low:

• Transaction fees
• Foreign exchange fees
• Withdrawal fees

Always check out the terms and conditions, as some banks may even waiver fees if you maintain a minimum balance.

Do you have access to credit?

Even if you don’t plan on using credit, it’s always good to have there as a buffer. Look for accounts that offer credit cards and overdrafts – just in case an unexpected business expense comes from nowhere (it does happen!).

Do they offer international capabilities?

If you work with clients overseas, you’ll need to consider accounts that offer multi-currency facilities, international wire transfers and foreign exchange services. Even if you currently don’t have clients overseas – this is definitely worth considering if it’s a goal you have for the future!

Are the payments secure?

Secure and convenient payment processing is a must – think online payment gateways and mobile payment apps. It’s also a bonus if you find a bank that offers things such as payment reminders and tracking features.

Can you speak to someone easily when facing any issues?

We don’t mean to scare you, but things go wrong from time-to-time. When it comes to your money, you need to be assured that you’ll be able to speak to someone who can fix your issue ASAP. On top of that, ensure the banking features are easy to use, and the customer service reps are accessible.

Do they integrate with the accounting software you use?

We saved this one until last, but it’s super important. Integrating with accounting software helps automate your financial record-keeping, which means you can complete your tax returns much easier, and have one very happy accountant! Software such as Pandle integrates with most banks.

Best business bank account for freelancers

There are so many to choose from, depending on your industry and the needs of your business, but here are some honourable mentions to start you on your journey!
 

What is FSCS protection?

You probably noticed in the features column we’ve listed FSCS protection. This stands for financial services compensation scheme. Basically, if the bank fails, you’re covered up to £85,000!

We know this is a tough decision to make, so we’d recommend speaking with an accountant for more advice. You’ve got this.

Find even more advice and guidance for freelancers in our info hub!

The post What’s the Best Business Bank Account for Freelancers in the UK? appeared first on Freelancer News.

One of the main reasons for this is that making products can be time-consuming for a small to medium-sized business – as well as expensive!

Even businesses which do make their own products are likely to purchase the materials from a wholesaler before putting them together.

As a freelancer, you may be wondering if you can even use wholesalers – so we’ll look at what a wholesaler is and who can use them.
 

What is a wholesaler?

A wholesaler sells products or materials in bulk to other companies at discounted rates, who then resell them for profit.
 

What’s the difference between wholesalers, suppliers, and manufacturers?

Wholesalers, suppliers, and manufacturers are often used interchangeably, and they are similar in some ways, but there are key differences.

An example of businesses which may use a wholesaler

Example 1:

Let’s say you’re a sole trader who owns a womenswear retail business. You design some of your own clothes with in-house seamstresses, but also use wholesalers to keep your website and social media pages busy with regular pieces for your customers to purchase.

You know a wholesaler that stocks the type of clothes that match your brand and visit them monthly to purchase various stock. In this instance, you’ve purchased 120 of your previous sell-out dresses and 35 jackets that are now in stock from your wholesaler (you’ve bought fewer of these as you don’t know whether there will be demand for them).

The wholesaler has likely purchased the goods from a manufacturer or, in some cases, another wholesaler to go on sale at your retail business, and others alike.

Example 2:

You’ve just opened a small convenience store and have now found some good wholesalers to provide fresh fruit and veg, snacks, and various newspapers to your store. They sell you these items at a discounted rate, and you sell them at your retail price to earn a profit. As time goes on, you know which items your customers love, and which ones aren’t worth repurchasing.

An example of a wholesaler in this instance is Smiths News, who supply newspapers and magazines to 24,000 retailers, superstores, and corner shops.
 

Who can use a wholesaler?

The good news is anyone can use a wholesaler! There’s usually no restriction to who can use a wholesaler, although many microbusinesses and freelancers may decide against using them because even though the discount is great, wholesalers tend to sell in bulk.

If you work from your front room selling American Candy in the UK, there are probably only so many boxes of sweets you actually need before you can no longer move around in your own home!
 

Why should I buy wholesale?

There are many reasons why buying wholesale may be a great option for your business.

• Consistency purchasing familiar brands for your customers: Wholesalers are known for having lots of branded, well-known products in stock that your customers are familiar with – which helps you with sales and increasing your profits.
• Discounted prices: They have a variety of goods that you can buy in bulk at a decent price. Some wholesalers offer a better discount the longer you continue to use them.
• White labelling and personalisation: Many wholesalers team up with drop shipping companies nowadays, so you can make your own personal supplies. Known as white labelling, this is where a manufacturer creates blank t-shirts, jumpers, stationary, or just about anything, that you can then rebrand with your own logo.

Where can I find good wholesalers?

There are many options when looking for wholesalers, and it’s definitely worth testing a few out to see which works for you.

• Local wholesalers: With a local wholesaler you can see the stock in person and build a good rapport with them – shipping costs will also be less expensive (if you need shipping)
• Trade shows: There are 2 types; horizontal trade shows where wholesalers select a wider variety of products to showcase so you can see what you like, and vertical trade shows where wholesalers offer goods and services for a specific industry.
• Online: You’ll find suppliers in the UK and abroad that may cater to your needs better than any of the above, depending on what it is you need. Always look up the pros and cons! For example, if you opt for a wholesaler abroad, some banks can inflate the exchange rate without any warning.

 
Find even more advice and guidance for freelancers in our info hub!

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If you’re thinking of starting up your own side gig, you’ll be joining one in five Brits that have done the same since March 2020. But where exactly do you start? We’ll give you some tips and tricks on how you can start a freelance side hustle.

What is a side hustle?

A side hustle is basically a hobby or side job you do part-time in addition to any other employment you may have. Lots of people start side hustles from their personal hobbies, for example, creating bespoke cakes or paintings, and they’re likely to have a small (but loyal) clientele.

The best thing about side hustles is the flexibility and freedom to earn your own income. As your own boss, you can choose how often you work, and the clients you want to work for. There are many stories of side hustles snowballing from a hobby to a full-time business – but again, it’s up to you if that’s what you want to strive for, you can go at your own pace.

How do I start a freelance side hustle?

If you have decided you want to start a side hustle, congrats! It’s an exciting prospect, but it can be daunting if you don’t know where to start. We have some tips to help you on your way.

1. Think about your passions and skills

Working full-time can really burn up all your energy, so you need something that can ignite your creative flame, even after working 40+ hours per week in employment.

Doing what you love will really reflect in your work, and it’ll feel less like a second job and more like a hobby.

2. Create a plan and set realistic goals

Setting huge targets, such as making several million pounds with just seven hours a week set aside for your new side hustle, while not impossible (we want to be positive here), is unrealistic.

Think about how much time you have, and how much money you can invest in your side hustle – and always give yourself time to find clients and grow. It doesn’t happen overnight.

3. Start networking

Networking is a powerful marketing tool. For example, if you’re a copywriter and you attend regular networking events or even get to know people on professional platforms such as LinkedIn, there’s always somebody who knows someone else that may need a copywriter for their business.

It’s the same with people who create incredible cakes – someone will always need one for a special occasion, and sending out email pitches to people who run corporate events or meeting up with other freelancers can really help you connect with others and reach the right audience.

4. Build your brand

Once you’ve decided on a business name, and what it is you offer, it’s time to think about how you raise your profile, such as by building a presence on social media. It can help to create a logo, and be consistent with your brand colours and fonts so customers recognise it’s you who is posting. Building a brand your clients trust and enjoy is crucial!

5. Look at your competitors

What are your competitors doing that you do better? Is there anything you can offer, that maybe they don’t? Sometimes finding a competitive edge or niche can really help you stand out amongst the crowd.

6. Set your prices

This can be difficult, especially if this is your first experience of working out how much to charge. Our advice would be don’t undersell yourself. It can be easy to sell your products or services for super low prices to compete with others, but the joy may quickly drain out of your new side-job if you take on a heap of work with next to no reward.

Look at what other people in your field are charging, and keep in mind your costs for the materials you need, and of course, your time.

Where can I advertise my side hustle business?

This depends on what your side hustle is. If you’re looking for a low-cost option to advertise your business, then most of the time social media is your friend.

If you run – let’s say – a kids’ teepee business, advertising your services in local Facebook groups, Instagram, and even Tik Tok while using the correct hashtags and keywords could attract parents looking for party ideas.

Paying for advertisements is always an option too, but if you do this make sure you budget yourself properly. Throwing all your savings on Instagram ads won’t work if they’re targeting the wrong audience. It can sometimes take a while to get it right.

If you’re getting crafty and selling personalised items, websites such as Etsy can highlight your brand and give you a platform that already has substantial traffic going to it. Though you’ll have platform fees to think about, they’re usually much cheaper than the cost of setting up your own website (and it’s usually much easier to create listings).

If you have a service to offer, then building a network on LinkedIn can be useful. You could also attend networking events to meet potential clients and get your name out there. Just keep in mind that information might make its way back to your employer though – which for freelancers with a service-based side hustle can sometimes be a consideration!

There are also lots of freelancing sites where you might be able to pick up work.

How do I create an invoice for my side hustle business?

It’s so exciting once you get your first client, but what happens when it’s time to collect your payment? Creating invoices is super simple, so the first rule is not to overthink it!

If you don’t use invoicing software to do the job for you, all it needs is the following:

• Your business name, address, and phone number
• Your client’s name, address, and phone number
• A list of products sold, or services completed
• The date the invoice was issued
• A unique invoice number
• The total amount
• Instructions on how to pay

Your payment instructions can be as simple as, ‘Please make payment via bank transfer to [insert company name or your name], [sort code], [account number].

To personalise it, use your logo and brand colours! Read our article about successful invoicing to learn more.

Do I need a business account for my side hustle?

Nope! You’re under no legal obligation to open a business bank account for your side hustle, but if you ever need to register for Self Assessment, it may be better to keep your personal and business payments separate – especially when it comes to bookkeeping!

Do I have to pay taxes on my side hustle?

If you earn more than the £1,000 Trading Allowance in a tax year, you’ll need to register for Self Assessment with HMRC. How much tax you pay will depend on your overall income for the year.

 
Find more of the latest news and guidance for freelancers in our info hub.

The post How Do I Start a Freelance Side Hustle? appeared first on Freelancer News.

As a freelancer, you may worry that AI could take work from you, which is a very valid concern. After all, there’s very little it can’t do! But what if you used AI to your advantage?

By treating AI as a tool rather than a replacement, freelancers could improve their work in a more efficient way. In this blog, we’ll explore how you can make AI work for your freelance business.
 

What is AI?

In simple terms, artificial intelligence is inspired by human intelligence, and its main focus is the brain – especially when it comes to how we think, learn, and execute tasks. It essentially makes computers, smartphones, and machines act more like us.
 

What do we use AI for?

AI can do a multitude of things, and at a much faster speed than humans. It can problem-solve, make decisions, search the web, and even create art – not to mention switch your lights on or off in any room, or regulate your air conditioning without you lifting a finger.

You’re likely to have interacted with AI in one way or another, whether you’ve spoken to a customer service bot, asked Siri or Alexa a question, or used an AI art generator. It’s part of our lives these days, and most people don’t even realise how much we interact with it.
 

What are the benefits of using AI as a freelancer?

As a freelancer, it can be difficult to see AI as something positive – especially when it’s being used to create art and write content – but one thing AI lacks is the human touch, meaning freelancing isn’t dead (and never will be).

There’s plenty of things AI simply can’t replicate, and collaborating with it can help:
 

Boost your efficiency

As a freelancer, you’ll spend a lot of your time on admin. In fact, lots of freelancers will admit to spending a good chunk of their working hours scheduling meetings, sending out email reminders, and ensuring there’s no clashes in calendars. Using an AI scheduling assistant app can save you hours on admin, so you can focus on what you do best.
 

If you want to be efficient as possible, an AI scheduling assistant like Clara can give you a helping hand. Apps like this give you a real-life-human virtual assistant feel, simply ask her to find a time in your diary to schedule a meeting and she will do just that.

If that feels a little weird, you can use other AI Calendar apps like Clockwise!

If the financial admin side of things is slowing you down, take a look at cloud-based bookkeeping software providers such as Pandle, which offers lots of powerful automations at a decent price.
 

Improve your accuracy

If you’re a copywriter, marketer, or someone who needs to write a lot (which is most freelancers), you’ll know mistakes are easily made. Especially when you’ve read over your work for the fifth time and words somehow lose all meaning.

Using AI tools can help you spot errors quickly, so you can focus on writing that killer article or piece of copy.
 

Tools like Grammarly highlight any errors, and in some cases offer suggestions to reword sentences so they read better for your audience. This is a massive help if you don’t have an extra pair of eyes to make use of every time you’re writing.

The likes of Grammarly aren’t there to replace you, but rather to assist you in writing clear, engaging content.
 

Assist you with ideas

We assume you have lots of ideas – after all, you’re a freelancer, and your business runs off the back of your creativity! But sometimes you need help getting the bones of an article or piece of copy, and AI can assist you in doing just that, while also keeping your content original and yours.
 

If you’re looking for inspiration on how to put an article together, AI tools like copy.ai can help get your creative juices flowing. You could use it to get the bare bones of an article or to see your topic from a different perspective. Make the article your own though, of course – the content needs your unique human perspective!
 

Keep you up-to-date

When you run your own business with clients from different industries, you’ll need to stay ahead of the curve with access to all the latest data and insights. It can be hard to do that sometimes, with information flying at you from every angle.
 

Chat GPT is big news at the moment. This AI chatbot is trained on a large dataset of up-to-date information, so asking it the right questions might be a useful way to find the latest data analysis and trends.
 

Will AI be the end of freelancing?

AI does have the capability to take some work away from freelancers – for example, if businesses want to cut costs and use AI to write a blog post – but there will always be a demand for freelance work somewhere, and this is because:
 

You can’t replicate human creativity

AI is brilliant for writing clear and concise content, but it doesn’t go much further than that. It can’t think outside of the box and it doesn’t have a deep understanding of real human emotions. So, while AI can write a decent piece of copy, it will always need a human touch to make it relatable.
 

Some content can be duplicated, and in some instances, false

There are two issues here that could damage your website authority. Firstly, if lots of us are asking for AI to write specific things, there’s a likelihood somewhere along the line content will be duplicated.

As well as this, if we were to ask AI to pull up quotes and statistics, it may pick out-of-date or incorrect information. Without human judgement, it could be tricky for AI to pull statistics that are factually correct.
 

It lacks original thought

AI is all about gathering data and looking at algorithms. It can’t come up with an idea that isn’t there, as all of its thoughts are ones that have been written before. We humans, on the other hand, can come up with a unique fresh perspective for everything we write.
 

It has knowledge, not experience

A lot of our learning is through experience, successes, or failures. And that’s what makes our content so unique. We can suggest things from our own personal experience and give examples or advice that AI can’t – simply because it hasn’t lived through it. It’s that personal touch readers want, and what clients love for their websites. Tapping into real human emotions will always be vital, whether you’re writing content, producing art, or creating designs.

Freelancers will not be replaced any time soon.
 
Head over to our Freelancer Hub where we have a whole host of guides and resources.

The post How Can AI Work for Freelancer Content Creators? appeared first on Freelancer News.

Not to mention business owners and self-employed individuals are being hit harder than ever with the cost-of-living crisis, and prices becoming more expensive by what feels like the millisecond.

We know this doesn’t make you any less passionate about your freelancing work, but the vast majority of us need to (at least) pay our bills. It’s even better if our passions do more than simply cover our business overheads. But what can you do to make sure you’re profitable?

The very nature of being a self-employed freelancer means that your income is likely to fluctuate no matter what. To help you stay ahead, we share our tips for maximising your freelancing profits. You can do it, we’re rooting for you!
 

What are your key expenses?

Some expenses are absolutely key to your ability to freelance. Depending on what sort of services you provide, this might include anything from rent payments, your phone bill, or printing costs.

When we’re surrounded by them every day, it’s easy to overlook some of the costs that might be putting strain on our financial budget. Reviewing and managing our costs can make a massive difference to how much profit we make.
 

Do you rent out office space?

You may rent out office or workshop space, but do you really need to? With rent prices skyrocketing, especially in city centre locations, it might be time to review how essential that extra expense really is.

Lots of freelancers work from home as a cost-saving measure (and for the sheer convenience!), and might sometimes rent hot desks or meeting spaces to see clients, or even just arrange to meet up in a coffee shop. Remember, you can claim expenses if you work from home too, so all the more reason to set up your own home office!

Technology is also ever-evolving, with online video calls and screen sharing now accepted as the norm. If your premises are more habit than helpful, it might be time to get shut of the space and keep more of your income.
 

What are your suppliers like?

It’s not unusual to find a supplier and stick with them until the end of time (we’re creatures of habit so a lot of us tend to stick to what we know). But it’s always best practice to check what/who else is out there, so you’re always aware of the best solutions available.

This helps you stay efficient, and can even help you keep on top of your competitors. When thinking about your supplier, keep notes such as:

• What sort of payment terms do your suppliers offer? Are they beneficial for your cash flow? For instance, if you order printing work for a client, does your supplier give you enough time to recharge the customer before paying the printing bill, or does the cost come out of your pocket first?
• You’re likely to have looked around first before choosing your supplier, but have you checked since? Things may have changed since you first had a look, so find time in your diary to review different suppliers. You never know who you might come across!
• If you feel like their fees are a little high for what they offer, consider trying to negotiate with them while also checking out other suppliers in your area. If you go to networking events or have contacts with other freelancers or small businesses, ask if there’s anyone they’d personally recommend. You’ll find people in your industry will have heaps of knowledge to help and guide you through this sort of stuff.

 
Never feel like you’re stuck with one supplier, there are plenty of friendly professionals out there offering great prices!

And lastly, remember it’s business and nothing personal, so don’t feel tied down to a particular person for fear of hurting their feelings, especially if it could be damaging your profitability.
 

How efficient is your business?

As a freelancer you need to ensure you’re making your work life as streamlined as possible. After all, you’re running the whole show!

• Try to track how you spend your time, and where you use up resources. For instance, are there any processes you can change to make them easier or avoid duplicating work? If you’re active on social media a lot, could you plan and schedule more of your posts? Having them scheduled a couple of weeks in advance can make a huge difference to your workload, rather than coming up with content and posting it ad hoc.
• Can you schedule follow-up emails for your clients? You can set up personalised emails a couple of days (or hours if you prefer) after client meetings to check in and thank them for their time, and add any bits of info that you normally would. Personalising these emails is usually pretty easy, and you can set up trigger points to stop anything being sent if they email you first (so it doesn’t look like you’ve automated anything!).
• If you spend a lot of time manually entering bank transactions into your bookkeeping or invoicing clients, it might be worth researching what software options are available to do more of the heavy lifting for you.
• If you create or sell products, is there a way to use up leftover or surplus materials? Do you spend time answering the same questions with each new client? Maybe you could prepare an onboarding guide, or even just write up an email template to deal with them more efficiently.

These are just a few suggestions, but it completely depends on what it is you do. It’s well worth getting a pen and paper to record your day, and see if there’s anything you can do to relieve those pain points!
 

Are you under-pricing your goods or services?

When starting a business, most of us are worried about putting clients off. So, instead of charging what we’re worth, we massively undersell ourselves and usually end up out-of-pocket rather than making a profit!

Whether you sell your services or products (or both) you need to think of the following:

 
Always do your research on what other people in the industry are charging – especially your nearest competitors. This will help you decide whether it’s time to put your prices up. We know this can feel difficult, but with time you’ll become more comfortable deciding how much you should charge your clients. Always remember your own worth!
 

Good bookkeeping

We’re not being dramatic when we say bookkeeping is absolutely essential for every business – freelancers included!

It’s super important for many reasons, from helping you stay organised, to identifying any issues putting strain on your finances – such as repeated late payments from clients.
 

Keeping on top of everything and get paid quickly

Keep on top of the jobs you’ve completed, the hours you’ve worked and the invoices which have or haven’t been paid. Having everything so visible will help you keep track of what you need to pay, and who still needs to pay you.

You can even use this information to send payment reminders to all your clients, helping you to get paid faster, and review the ones who regularly miss their payment date. This way you can decide whether you want to continue working with these clients, or whether it disrupts your cashflow too much and therefore isn’t worth the stress.
 

Spot trends

If you have a good bookkeeping system, you can check your income, outgoings, clients who pay the fastest, and services or products that are the most popular. This way you can keep on top of who your best clients are, what services or products they’re loving, and what areas may need a revamp or some marketing.
 

Have your tax and expenses under control

Did you know you could claim tax relief on some of your expenses as a freelancer? For instance, this might include your travel costs to see a client, or a mobile phone you use for work. The list goes on, but by being aware of what you’re entitled to, and logging it all in your bookkeeping, you won’t be left second guessing what expenses to claim back in your tax return.

Speaking of which, good bookkeeping will also help you keep on top of your earnings, so you can begin to put money aside ready for your Self Assessment tax bill!

Keeping on top of the books will help you spot opportunities or issues in your business. The best part is that some providers offer free bookkeeping software, so that won’t be another thing you’ll have to pay for.
 

Do you need to look at how you’re promoting your business?

In an ideal world, we’d create a website with our services displayed, and customers would come flooding in, leaving us busy until retirement. Unfortunately, though, that just isn’t the case.

While marketing may be a little scary, it’s vital for getting your name out there. Don’t let the name put you off! Marketing can be anything from handing business cards out to your mates in the pub, to advertising your services in a LinkedIn post.

Before you go to the time and cost of setting up a website, do you actually need one? In some cases, you might just need to set up a sharing link to your portfolio. If you do need to use a website to promote your services, but you’re not too sure where to start, you could take an online course or even hire help from another freelancer.

Without help or training, we don’t want to know where we’d rank in Google. And let’s be honest, we could all hide our deepest and darkest secrets on page 3, and no one would know.

What else can I do to promote my freelance services?

• Have happy customers? We love to hear it! It’s a great feeling, and you should be super proud. If a customer is reaching out to you because they loved your service, ask them to leave you a review! It’s free promotion you should never miss out on if the opportunity arises. Even the way you deal with negative reviews is an opportunity to show everyone what it’s like to work with you.
• Look at your marketing strategy. As a freelancer, you need to find what works for you. You could advertise yourself on social media, meet people at networking events, or even reach out to your existing or previous clients. Word of mouth recommendations are a powerful form of marketing! Test what works for you and don’t be afraid to try new things.
• Follow up on any dead ends. It happens to us all. You give someone a quote, they say they’ll get back to you, and then it’s dead silence. Have a follow up email template ready for any quotes, letting your clients know you’re there if they need you. You’re not being rude, sometimes people just need a little chase.
• Remember to be patient. Great things take time, so patience will be required when seeing out a new marketing strategy or building up your customer reviews. It’ll all be worth it in the end.
• Contact previous customers. Getting in touch with people you’ve worked with before might lead to repeat custom, or at least help you understand why you might not be getting repeat business.

The main thing to remember is not to be so hard on yourself. It can be extremely difficult being a freelancer, but once you learn how to take action and when, the more your hard work will pay off.

Get more advice and news over on our Freelancer Hub!

The post How Do I Make Sure I Earn a Profit? appeared first on Freelancer News.

At some point, as inevitably as tax itself, you’ll encounter Self Assessment, and before you know it, payments on account. Intended to make paying your tax bill easier, payments on account can also be an unwanted surprise, which is why we thought we’d share our guide to what they are.

So, what are payments on account?

Payments on account are essentially there to spread the cost of paying tax through Self Assessment. They work on the assumption that you’ll make the same amount or similar in the next tax year as you did in this one.

This can be both a blessing and a curse, but you’ll need to be aware of them if you either:

• Owe more than £1,000 in tax from self-employment to HMRC
• If less than 80% of your tax bill has already been collected at source (so this will be referring to the likes of PAYE)

Think of payments on account as a pre-payment towards next year’s tax bill. But because HMRC aren’t psychic and don’t know what next year’s tax bill will be, they just assume it will be the same as this year’s.

Is there any way around payments on account?

There’s no escaping from this one. The minute you submit your Self Assessment, HMRC will calculate your tax bill. If the bill comes to more than £1,000, or if less than 80% of the tax you paid this year was deducted at source, you’ll automatically become liable for payments on account.

What will my first year with payments on account look like?

It’s well worth preparing yourself for the possibility of making payments on account, so you aren’t hit with unexpected bills.

They can feel like a burden because you’re paying some of next year’s taxes in advance, even though you haven’t earned the money yet.

It’s why it’s so important to keep track of your bookkeeping and potential tax bill throughout the year!

In this example of making payments on account, your tax bill is £1,000 in your first year, and £1,500 in tax in your second year

• • Your first tax year ended 5th April 2025 (the 2024/25 tax year), and you must pay your £1,000 tax bill before 31st January 2026.

• • Because your 2024/25 tax bill hit the £1,000 threshold, you must also make payments on account towards the 2025/26 tax year.

• • The 2025/26 tax year runs 6th April 2025 – 5th April 2026, but the deadline for submitting your 2024/25 tax return is 31st January 2026. This means you won’t actually know what you owe for 2025/26 just yet, so HMRC assume the bill will be the same as it was for 2024/25.

• • Payments on account are made in two equal instalments. The first half is due at the same time as your 2024/25 tax bill (before 31st January 2026).

• • That means you’ll need to pay £1,500 by 31st January 2026. This amount is made up of your £1,000 tax bill, and £500 which is your first payment on account for next year’s tax. It can really hammer your cash flow if you’re not expecting it!

• • Then before 31st July 2026 you would need to pay the remaining £500, which will be your second payment on account towards next year’s bill.

• • Once you get to the end of your second year, 5th April 2026, HMRC will know you owe £1,500 in tax, but due to splitting the cost with your payments on account, they’ll be able to see that £1,000 has already been paid, leaving £500 left to pay for that tax year.

• • The bill for the tax year which ends 5th April 2026 is due before 31st January 2027. You’ll need to pay the £500 balance, plus the first payment on account for the following year. HMRC will assume that your bill for the following year is £1,500, so you’ll need to pay half of that amount on top of the £500.

• There would then be the remaining £750 to pay by July 2027.

But what if my profits change from one year to the next?

HMRC calculate your payments on account by assuming you’ll owe an identical amount to the previous tax year. But if you make less profit, you’ll owe less tax, so big changes to your profits can really disrupt things.

HMRC predictions can end up skewing our tax bills, but they do eventually balance themselves out. If your payments on account mean that you overpay on tax one year, you’ll always receive it back when the tax year is over.

Obviously not all of us can wait until the end of the tax year, so there is an option to request for HMRC to reduce your payments on account.

Before you do that though, we strongly recommend some careful analysis of your income, outgoings, and profits first. If you estimate you’ll make much less, but then make a lot more, HMRC will demand the difference straight away and might even charge interest on top.

If you want to reduce payments on account you can submit a request to HMRC.

What should I do if I’m struggling to make payments on account?

We’d recommend either chatting with Citizens Advice, to HMRC themselves, or better yet, speaking to your accountant who can look at your options.

They’ll be able to help you estimate how much your business can afford to pay, so when you go to HMRC, you’ll be ready with a realistic payment plan .

Looking for more advice on all things finance and accounting? Head over to our Freelancer Accounting section where we’ve got a whole hub of handy guides ready to help you out.

The post Do I Need to Make Payments on Account? appeared first on Freelancer News.

With so much to consider, it can be hard to know where to begin and easy to get lost. So, with that in mind, we’ve put together this simple guide to run you through the key points.

Knowing your worth

When considering your rate, the best place to start is by understanding your worth within the market. Are your skills in demand? Is there a lot of competition in your field?

The value of your specific skills is a great starting point to help you determine the price point to charge your client. Your qualifications, expertise and experience all make you unique, and help you stand out from the crowd.

If you can demonstrate the proficiency of your skills (perhaps through a portfolio of past work or positive reviews from previous clients), you will be able to prove your worth and justify charging your clients a higher rate.

Always remember what keeps you in demand with your client. You have a lot to offer – don’t sell yourself short. Remember, your years of experience and knowledge are reflected in the fee.

Industry trends

One of the many benefits of being a freelancer is that your rate is never fixed. Always be aware of growing trends in your industry. Regularly re-evaluate your own rates to reflect the industry standard.

• How much does your competition charge?
• Are they cheaper or more expensive than your own rates?
• Perhaps most importantly, have they changed their fees recently?

Remaining competitive is important, but it can be a difficult balance to strike, especially when competitors regularly change their pricing. Try not to undervalue yourself. Charging lower rates can lead to missing out on potential earnings, and might even put some clients off if they think you’re not good enough.

As a rule, clients normally expect to pay more when using freelance services. When proposing your rate to a client, communication is key and their feedback is important. Listen to what they say and pay close attention to your pricing.

When freelancing, no two projects are ever the same. Each job is unique and brings its own trials and tribulations. Always consider any additional specifications of a project in your fee. If there is a strict deadline or greater complexity required, this will naturally demand more effort from you.

Your time is precious, and so the projects you work on need to be worth the effort, whether that’s financially, or in terms of growth and opportunities. Don’t be afraid to reflect this in your fee.

Should I charge per hour or per project?

When determining your rate, there are a number of pricing models to consider, such as charging an hourly rate, or quoting a project fee. The difficulty is that:

• Clients usually want an idea of how much something will cost beforehand
• You don’t want to undersell yourself
• You don’t want to price yourself out of the job

It’s a balancing act, and there are pros and cons to every charging method.

Hourly rate

Charging an hourly rate has the benefit of simplicity. You only charge your client for the hours you work to complete the project. This pricing model is common among upcoming freelancers and ideally suited for service-based projects. You’ll still need to give clients an idea of how long you expect something to take, though! Plus, if it looks like you’re going to significantly go over the time quoted, tell them in plenty of time.

Charging per project

Alternatively, some freelancers prefer offering a fixed rate per project. For long-term assignments with clearly defined client goals, this can be a perfect fit. When you can’t provide a definitive timeframe for a project’s completion, offering a fixed rate to clients can be more appealing, as it helps them manage their budget more efficiently.

There is no right or wrong method, so experiment and find which pricing structure works best for you.

Paying your bills and covering costs

Another important consideration in deciding your rate is the cost of your bills and outgoings.

• How much money do you need to earn to support yourself and your family?
• What is your annual salary goal?
• Will the project require any supplies, equipment or specialist software?

It’s your responsibility to ensure that your hard work empowers your lifestyle and that you are able to keep your business afloat.

Always factor in the cost of running your business, and check your financial reports to make sure you’re on track. Every freelancer has their overheads, whether it’s purchasing new hardware, renewing a software subscription, or marketing. These necessary costs need to be accounted for, and factored into your rate.

Don’t forget your tax bill

If your self-employed income goes above £1,000 in a tax year, you will need to report this to HMRC. An important point to note is that this is based on income. You’ll pay income tax and national insurance on your profits. Keep this in mind when you’re working out what to charge your clients!

You can make the most of your profits by hiring an accountant to assist you with claiming expenses, improving your tax-efficiency, and paying your tax bill on time; but you will need to pay for their services too. Even so, finding an affordable and skilled accountant can be a real boost to your take-home pay.

Considering cashflow

In life and business, preparation is the key to success. Having a solid cashflow strategy is essential to support your business and a keystone in setting your freelance rates.

How much you charge determines your ability to prepare a financial safety-net for those quieter months. Business costs can arise at any time, and you need to be prepared for when they do.

To keep your cashflow running smoothly, always ensure you have a written contract with your clients. This helps prevent miscommunication and, if you include payment terms, gives you a time-frame within which you can expect to be paid.

After completing a project, invoice your clients correctly and on time. It is your responsibility to ensure you are paid correctly and in a timely fashion, and communication is key.

To avoid anyone forgetting to pay you, send payment reminder letters or emails when the agreed payment deadline is near. If a repeat client is proving difficult, you can always withhold your services until any outstanding bills are paid.

Factor in the hours you won’t get paid for

When you are a freelancer, you don’t have a team to fall back on, and the success of your business rests solely on your shoulders. We don’t mean to sound scary, but like all good things, running a business takes time.

To keep things running you’ll inevitably find yourself spending a lot of time sending out invoices, building client relationships and replying to emails. Whilst this administration is important, it’s also non-billable time.

With each project, do your due diligence. Consider how many non-billable hours will be required to complete a project and factor that into your rates. It might be worth looking at tools or software which can help automate some of the more time-consuming aspects.

Life can be unpredictable, too. When you run your own business, factor in the possibility of sickness or other unexpected absences. On the days you are feeling worse for wear, you might need some downtime to recover. It’s sensible to account for several sick days in a year, as its better to have them and not need them, than to be stuck working when you’re feeling run down.

One of the biggest advantages of being a freelancer is you have the freedom to take time off whenever you wish. You don’t need to request it, but this flexibility comes at a cost.

You might not get paid holidays, but taking some time away from work is well deserved and essential for your health and mental well-being. So don’t forget to factor this into your pricing, either!

Find more guides and resources for freelancers in our online hub.

The post How Much Should I Charge? appeared first on Freelancer News.

Your bookkeeping and accounts will suffer if your invoicing process isn’t run like a tight ship. Messy books can also lead to bigger issues such as errors in your accounts and missing important HMRC deadlines, resulting in financial penalties.

Best-practice invoicing starts with you creating documents that tick all of the necessary boxes. Some of the information you’ll need to include goes without saying – and we’ll explore all of those essentials below to ensure that they’re on your radar (and your invoices).

However, some information isn’t quite so definitive. One example of this is your Unique Taxpayer Reference (UTR) and in this article, we aim to clear up any confusion you might be feeling around that particular topic.

What is a Unique Taxpayer Reference?

A Unique Taxpayer Reference – or UTR for short – is a 10-digit number that is used to uniquely identify you or your business when it comes to matters of tax.

It’s similar to having a passport number or a National Insurance number – it differentiates you within a system so that you can be identified from other people and in this case, other businesses.

Anybody who registers for Self Assessment will automatically be assigned a UTR number by HMRC. Sole traders only require one UTR but in the case of partnerships, each individual partner will need their own UTR and so will the partnership itself. A company director will also have a UTR number, separate to their company, so they can submit Self Assessment for their own personal income.

Examples of places you’ll be able to find your UTR (apart from your initial SA250 welcome letter) include:

• Self Assessment payment reminders
• Statement of account
• Previous tax returns

Is a UTR required for invoices?

Your Unique Taxpayer Reference number shouldn’t be included on your invoices. For some people, the confusion here lies in a mix-up between UTR, CRN (Company Registration Number) or a VAT Registration Number.

Whilst the latter two must be shown on any documents that you send or receive (as well as other instances such as on your website) UTRs, on the other hand, are highly confidential pieces of information. For that reason, they should never be shared publicly on something like an invoice.

Some freelancers believe that because they don’t have a company registration number, they need to share their UTR number instead – but that isn’t true. They’re not interchangeable and should never be treated as such.

A great rule of thumb to follow is to always remember that clients and customers do not need to know your Unique Taxpayer Reference. Your UTR relates to your personal tax information, so think logically about who you’d want to make privy to this.

Is there anyone I should share my UTR with?

As we mentioned earlier, the only people you should ever really need to share your UTR number with is an accountant, a financial advisor or somebody from HMRC. Or if you’re a subcontractor, you’ll need to share your UTR with the contractor hiring you (so they can deduct tax at the correct rate under the Construction Industry Scheme).

In fact, there are very few reasons why you would ever need to share your UTR number so if prompted to do so, think carefully and double-check first. If your UTR gets into the wrong hands, you could be leaving yourself open to fraudulent crime.

Things to include when creating an invoice

Okay, so, we know that you should definitely not include your Unique Taxpayer Reference number on any invoices for freelance work – but what should you include?

No doubt you’ve already been sending invoices for a while now but hey, a quick refresher on best practice never does anyone any harm. So, let’s take this opportunity to run through the essential information you should be included on every invoice.

Things to include on all invoices:

• Your name and/or company name
• Your legal address and contact number
• The name and address of the company/individual you’re invoicing
• Date of invoice
• Unique invoice number
• Any purchase order or job numbers the customer has provided you with
• A description of what you’re charging for (the work that has been carried out)
• Items and cost breakdown (e.g., days and day rate)
• Total amount owed
• Bank details for the account you’d like to be paid into
• Payment terms (typically 30 days unless otherwise agreed with the customer)

In a bid to clamp down on overdue invoices, some will also choose to include a late payment disclaimer on the bottom of the document. This pre-warns customers that should they go over the agreed payment terms, you have the right to apply late payment fees.

If you’re VAT-registered, you will need to include your VAT registration number and a detailed VAT breakdown on the invoice.

For more help, visit our information hub.

The post Do I Need to Include My UTR Number on Invoices? appeared first on Freelancer News.

• Save you time.
• Are easy to learn and use.
• Make running your business simpler.

We’ve put together some of the best free tools out there to help you manage your business in all areas.

Finance tools to help you run your business

Managing your finances is one of the most important skills you’ll learn as a solopreneur. It doesn’t come naturally to many of us, but these tools should help.

Pandle Cloud Accounting

Pandle’s clean and simple interface makes it ideal for bookkeeping novices and experienced business owners alike. It takes the complexities out of bookkeeping while offering all the features you need from modern bookkeeping software.

Money Dashboard

For an overview of all your different bank accounts, Money Dashboard is an easy way to see all your accounts in one place. It’s great for tracking your spending and setting budgets across business and personal accounts.

Website management tools

If you have your own website or are planning to set one up, don’t overlook these tools.

WordPress

WordPress is one of the most popular ways to build a website. It’s fairly simple to use and if you get stuck, there’s an endless amount of support out there. You can either set up a free website with WordPress.com, or you can self-host and buy your own domain with WordPress.org.

Google Keyword Planner

To ensure your website is found by the right people, you need to think about SEO and keywords. A simple way to find good keywords is Google’s Keyword Planner. Simply type in some keyword ideas and you’ll see how often people search for them.

Content tools

As the saying goes, content is king. If you have your own website, content is one of the most important things to concentrate on. It’s what turns interested parties into paying customers.

Grammarly

To ensure your content is correct and reads well, Grammarly can be a big help. It checks your spelling and grammar and is a great tool for catching mistakes such as double spaces or tricky spellings.

Hemingway

Hemingway is another great content tool that checks if your writing is easy for most people to read. This is done using reading levels and is very important for people browsing your site.

Design tools

If you want to make a DIY logo or blog graphics, pairing these tools is a simple way to try your hand at graphic design.

Canva

Canva is great for creating blog graphics, social media graphics, header images or logos. It’s packed full of templates and designs or you can create your own from scratch.

Pixabay

If you can’t take your own photos all day, Pixabay is a great way to get hold of some free stock images. There’s a wide range of free photos on there you can download for your website or social media.

Social media tools

An important part of modern marketing is being on social media. Rather than spending all day on Twitter, these two tools are great for scheduling content.

Buffer

Buffer is a popular, easy-to-use social media scheduling too. You can link up to three accounts on the free plan including Instagram and Pinterest.

Hootsuite

Hootsuite is a similar tool which lets you set up three accounts on the free plan. It does, however, let you schedule 30 posts at one time, compared to Buffer’s 10.

Project management tools for freelancers

To keep track of all your clients and customers, a good project management tool is a must.

Asana

Asana is an advanced project management tool which allows you to work independently or with a team. You can create calendars, tasks, assign work to yourself and track progress. This is a great way to keep track of all your different clients and tasks in one place.

Trello

For a simpler task management tool, Trello uses a virtual card system. You can create cards with tasks, reminders and due dates to keep track of various projects.

Email marketing resources and platforms

As part of your marketing push or signup process, a good email marketing tool is crucial.

MailChimp

One of the most popular email marketing tools is MailChimp. Use it to set up email campaigns, schedule automated emails and even segment your email list into different groups. This ensures your emails are only sent to relevant recipients, giving your campaign a better chance of success.

MailerLite

MailerLite is another simple email marketing platform that’s worth checking out. It uses a simple drag-and-drop editor so you can build pretty professional-looking emails in minutes.

Which tool is right for you?

These types of tools are important for most businesses, big or small. The ones suggested above all have free versions but there is also a premium plan for each of them as well. Check which features are available on the free plan to ensure they meet all your needs.

The post Free Tools for Running a Business Solo appeared first on Freelancer News.