When you begin freelancing, you don’t do it to explore the business side of it; you do it because you genuinely love what you do and want to make a living out of it.
Due to the nature of freelancing then, many freelancers feel behind when it comes to actually starting and running a business. (I know I did!)
One of the biggest mistakes I made when I first began freelancing was not keeping track of my expenses. I actually used my personal bank account for my freelance income (that was my first mistake) and didn’t keep track of how much money was coming in or going out. Things have changed a lot since then, but I still find it hard to track my expenses.
I continue to work on it, though I’m still not where I’d like to be. The mistakes I’ve made are just a few of the mistakes that many freelancers face when trying to run a business.
FreshBooks has put together a great list of 10 common mistakes freelancers make when it comes to expenses. Mistake #3 is one we all need to watch out for.
“Mistake #3 – Not Having a Good System for Expense Tracking
Now, let’s be clear about one thing… Recording expenses is important, but so is the manner in which you record them. Just because you’re operating solo as a freelancer and don’t have the benefit of an entire accounting department backing you up doesn’t mean that you can get away with haphazardly tracking expenses in different locations, using different reporting structures.
If your expense documentation consists of a fistful of receipts and a few numbers scrawled on the back of an envelope, it’s time to put a better system into place. Freshbooks can help you organize expenses with ease by automatically importing expenses from your bank account or snapping photos of your receipts to add to your invoices.”
See the other 9 mistakes at FreshBooks.