What Is Your Freelance Financial Picture?

www.inkthinkerblog.com — We might be artists, creative types who perhaps aren’t math people, but we still need to be intimately aware of our finances as independent businesspeople. Do you know where you stand?

Here are some questions to get you on the way to having a clear understand of your freelance financial picture.

1. Are all of your invoices up to date?

 

• Have you sent all invoices for work completed?

 

 

• Have you marked “paid” anywhere payment has been received?

 

 

• Have you followed up on any payments that might be late or approaching late?

 

 

• Do you know how much money you’ve made?

 

 

• What’s your total freelance income for 2007 to date?

 

 

• How much have you brought in each month?

 

 

• How does this match up with your income goals?

 

 

• Do you know how much money you’ve spent?

 

 

• Are you keeping track of your freelance expenses? Pens, paper, postage, business cards, your fax line, a new computer dedicated to freelancing — they’re all business expenses.

 

 

• Are you saving your receipts and tabulating your expenses regularly?

 

 

• Do you know how much you can expect to bring in next week/month?

 

 

• Have you created financial projections based on what you’ve earned in the past to estimate your future earnings?

 

 

• Are you following up regularly with clients to remind them that you’re available and interested in working for them?

 

 

• Do you have any recurring gigs such as a monthly colum or weekly newsletter?

 

 

• Is your hourly rate acceptable?

 

 

• When you calculate the true time involved in the jobs you do, are you paying yourself enough?

 

 

• Are your rates competitive with others in the marketplace, or are you coming in too low?

 

 

• Do you have a plan for when you will increase your freelance rates?

 

 

• What are your financial goals?

 

 

• How much money do you want to earn from your freelancing every week/month/year?

 

 

• What types of jobs will you need to do to meet these goals, and are you doing them now?

 

 

• How many hours will you need to work to meet these goals, and how many are you currently working?

 

 

• Where are you right now with meeting your financial goals?

 

 

• Do you have a schedule for checking in on your goals to update them and check them off the list?

 

An invoicing system will help you keep everything straight and make it easier for you to track your income and expenses. It doesn’t have to be complicated, but it needs to be something that you can (and will!) use correctly and consistently. An Excel spreadsheet you customize for your needs or QuickBooks software will do the trick.

Whatever you decide on, make sure you keep track of your income, expenses, and goals! The success of your freelance business depends on it.

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www.kristenkingfreelancing.com
Finalist in 2006 Writer’s Digest Best Writer’s Website Contest

Contents © Copyright 2007 Kristen King. All rights reserved.

Contents Copyright © 2006-2014 Kristen King