There are the enjoyable parts of going freelance and being your own boss. There are also the boring bits which you’d rather avoid, but sadly they’re still just as important.
Dealing with the bookkeeping is rarely high on any freelancer’s agenda, but the good news is that there’s accounting software available which is perfect for freelance businesses.
If numbers and paperwork really aren’t your thing, using accounting software is a good way for freelancers to reduce stress (and cut down on errors, too!). Keeping your accounts up to date will also help you be more efficient, and even make better decisions about your business.
Keep scrolling for our round-up of the top 5 reasons why freelancers should really be using accounting software.
Time-saving speed and efficiency
One of the biggest benefits of having access to great accounting software as a freelancer is how much spare time you can free up. Running your accounts and managing your bookkeeping this is way is far quicker.
It’s also more efficient than any alternative. You’ll spend less time worrying about documenting expenses, and more time actually growing your business. You can even automate tiresome jobs like sending reminders to clients when it’s time to pay!
More informed decision-making
Whilst you might be a freelancing superhero, instant calculations and real-time data processing are beyond most people’s skillset. Accounting software, particularly those which are cloud-based and therefore accessible anywhere, has a clear advantage here.
It gives you the option of automating lots of your bookkeeping processes, like updating transactions from your bank account, or recurring invoices. The beauty of this is that your freelance finances stay current.
Having access to meticulous finance reports allows you to make more well-informed decisions, especially around spending, development and cost saving. Being able to evaluate your cashflow at the click of a button can help you think more clearly about everything.
Less room for human error with accounting software
In many cases, the power of human interaction is invaluable and always will be. But, where modern technology facilitates it, there’s certainly a place for our digital counterparts.
Using accounting software to document your freelance income is usually more thorough and accurate. These days, good software providers have built-in data checking tools which make it easier to catch potential issues. Your accounts will naturally become more accurate and reliable. Think of your accounting software as a measure which reduces the possibility of mistakes that need rectifying.
Removing manual accounting from the equation dramatically reduces the risk of human error. Fending off unnecessary hiccups further down the line is great news for taming the HMRC beast at Self Assessment time.
Access anytime, anywhere, when you need it
If you do decide to research accounting software options for your freelance business, it’s seriously worth considering going for a cloud-based service. Rather than storing data locally, such as on the device that you’re using, it’s all saved to the cloud. This is tech-speak for a remote server that you connect to using the internet.
The magic of cloud-based accounting software is how accessible it is. Much like signing into your social media account, a cloud-based service means you can login in to your bookkeeping from any online device. Your data can travel with you, and you’ll be able to stay up-to-date even whilst your out and about.
If you travel overseas a lot, keep your eyes peeled for software which deals with multiple currencies when you’re shortlisting your accounting software options. The better ones have a built-in currency conversion tool which uses the date of the transaction to work out the correct exchange rate to use.