Accounting Tools Relevant for Freelancers should be easy to use since several freelancers don’t have wide accounting knowledge.
As a freelancers it is however, essential that they know what accounting tools all are about. Accounting Tools are software that enables businesses to track and record financial activities in compliance with legal and taxation regulations.
It integrates several source documents like purchase order, invoice, bank reconciliation statement and so on together in one place. Also, because they have more valuable things to do than keeping accounting records. Moreover, they should have essential accounting functions, like expense tracking.
How much money can freelance professionals make per year?
If you’re interested in freelancing, various types of work are available. Typically, professions that require more technical skills can earn more for freelancers.
In USA, there are 57 million freelancers’ (51%) say no amount of money can entice them to take traditional job. They enjoy the following.
Flexibility and
Ability to work and stay in any location.
CNBC report shows that the average hourly rate and annual salary for most in-demand freelancing jobs as stated below. This article put forward 13 professional freelancers with average hourly expectations..
Writers: On average, a freelance writer earns $30-40/hr or around $42,000 annually.
Editors: Freelance editors usually earn around $25 to $35 per hour, an average yearly salary of approximately $40,000.
Programmers: Freelance programmers across different languages earn $60-70/hr or $120,000 annually.
General developers: A freelance developer typically charges $50-60 per hour, earning an annual salary of around $100,000.
Mobile developers: Also, Mobile app developers typically earn an hourly rate of $55-65 as freelancers, equating to an annual salary of $100,000.
Web developers: Freelance web developers earn an average of $90,000 annually by designing and creating websites at an hourly rate of $50-60.
Graphic designers: A freelance graphic designer typically charges $40-45 per hour, earning an annual salary of around $90,000.
Transcribers: Freelance transcriptionists can also earn an average of $20-25 per hour, adding to a yearly salary of around $32,000.
Online marketers: Freelance digital marketers typically earn an hourly rate of around $50, resulting in an approximate annual salary of $100,000.
Photographers: A freelance photographer has an hourly rate between $35-45/hr, with an annual salary of around $42,000.
CRM managers: A customer relations manager (CRM) expects to make between $50 to 60/hr, with an year salary of approximately $120,000.
Data analysts: A freelance who specialises on data analyst earn between $55 to 65/hr, annual salary of $100,000.
Bookkeepers: Lastly, an individual who works as a freelance bookkeeper usually earns an hourly rate of $30 to $35, which translates to an annual salary of approximately $40,000.
8 Accounting Tools Relevant for Freelancers
As businesses increasingly expect growth, they must have accounting tools that cater to the needs of freelancers and content creators.
These accounting tools will help freelancers meet their business needs and fulfil their obligations to the government. With the growing demand, the average hourly wages of freelancers can also increase, and proper data capturing becomes crucial.
QuickBooks
Two QuickBooks products are actually useful as Accounting Tools Relevant for Freelancers. They are QuickBooks self-employed and QuickBooks Online Simple Start.
Wave
Similarly, Wave’s accounting software streamlines invoice and cash flow management, allowing entrepreneurs to focus on business growth.
Zoho Books
One of the best overall accounting tools important for freelancers. Zoho Books is an online accounting software that streamlines financial management, automating business workflows, and enables seamless collaboration across departments.
Freshbooks
FreshBooks provides time-saving tools to run your small business efficiently
ZipBooks
ZipBooks is a robust platform that simplifies the management of your business with its beautiful and intuitive interface.
Trulysmall Accounting
This tool streamlines invoicing by centralizing invoice creation, branding, previewing/sending, and receipt.
Freeagent
This tool is designed for freelancers to track and analyze their finances.
Fiverr workspace
Fiverr Workspace Blog provides effective payment and back-office management resources for small businesses and freelancers.
Bonsai
Freelancers will earn money, receive payments and also have debtors owing them for their services. Appropriate bookkeeping skills will always stand as the key difference between a performing or non-performing freelancing business.
Important of Accounting Tools Important for Freelancers
Source: Canvas.
First, it makes them to keep track of incomes and expenses..
It makes them to staying on top of all invoicing issues
In addition, it makes them to keep accurate records for tax payment
It makes them to appreciate the work of an accountant and auditor
Also, is ensures the timely monitoring of daily business tasks and activities
It provides freelancers on how to take charge and defend business assets when bad times strike.
Improves cashflow
It makes freelancers to be motivated of their performance
It also protects freelancers against the legal consequences of not keeping accurate records for tax purpose.
It makes their work and reports to be more professional
Lastly, it makes them to be organised and able to budget for the future earnings and expenses.
Conclusion
It is essential for every writer who earn income to be familiar with the accounting tools. Also, to submit documents come tax time and annual report to monitor financial performance. In addition, if you need help, there are many step-by-step tutorials on YouTube or contact ohimai consulting.
This article covers business and personal growth, connected due to the author’s strong interest in both concepts. Business growth is when a business reaches the level of expansion and pursues additional options to earn more profit. It is achievable when business owners and environmental factors determine what happens to a firm’s success.
In addition, businesses experience growth when there is no agent and the principal issues. The industry is expected to grow when its customer base is expanded, revenue increases due to several business models. Also, strategies employed or when different products are produced after researching the market to know the need of consumers.
Personal growth involves both comprehending and pushing oneself to reach their full potential. It can encompass adopting new habits, hobbies, skills, and approaches to accomplish one’s objectives.. It can also mean continually examining who you are becoming and your plans to attain that level.
Growth is not just about gaining market share but also involves engaging in social activities. This means a surviving company’s success relies on how well it serves its wider stakeholders and increases social welfare (Ward, 2020).
Numerous studies have explored business creation, operation, and management (Santamaria, 2018; Birley & Westhead, 1993; Rosa, 1998; Iacobucci & Rosa, 2010). However, this book has identified an F-Ojes Model consisting of three main business and personal growth pillars.
Component of this model tested
Successful businessmen and women have knowingly or unknowingly tested and applied the components of this business and personal model. It has helped them achieve success and expand their businesses.
Amancio Ortega created the Inditex Fashion Group and Zara chain store to fulfil his business and personal ambitions. He implemented this strategy by reinvesting billions of dollars in dividends into real estate and further expanding his business. As a result, both he and his company have thrived, with Zara having branches and offices worldwide. He was even once the wealthiest man in Spain.
Ortega’s leadership style involves actively listening to employees and clients and recognizing them as essential members of his business network. He prioritizes their input and ideas to ensure the business’s success. Ortega kept manufacturing and pricing tasks in-house to prioritise the business’s best interests.
As he listened to employees’ suggestions, he was able to design unique brands. It has helped him integrate their opinions and views into the organization’s success. A network can do this for someone who receives vital information from the immediate environment.
Several scholars have investigated different models for business growth. Still, this book looked at the model by Churchill and Lewis (1987), which is relevant to small and growing businesses as stated in the five stages of company development. According to Lewis and his friend.
The stages are:
Existence
This is related to garnering customers and delivering product or service.
Survival
This means companies have demonstrated that they are workable business entities, with a big question as to whether there is sufficient money for the firm to break even and remain in business.
Success
This has to do with the decision challenges encountered by owners of the business as to whether to exploit the firm’s achievement and expand or keep the firm stable and profitable, providing a base for alternative owner activities.
Take -Off
It means how to make the firm proliferate and finance its growth..
Resource Maturity,
With its size and management advantages, the company can become a strong market force if it keeps its entrepreneurial spirit.
According to Lewis, the model can be helpful for owners during the initial stages of their businesses. As a valuable tool for business owners, the model facilitates task allocation and enables the adjustment of management positions. It also proves beneficial for accountants and consultants in identifying issues and offering solutions to smaller enterprises.
A business or individual who desires business and personal growth should apply the three pillars that make men great. Expanding customer base, increasing revenue, producing more, and going global can help achieve goals.
In line with Premaratne, the success of business enterprises and individuals depends on personal networks (Premaratne, 2001). Still, this book discusses identity and knowledge about current information technology and the knowledge-based economy.
In this book, the author has introduced the F-Ojes Model, which has three main pillars. The first pillar is IDENTITY; the second is represented by the letter K, which stands for KNOWLEDGE. Lastly, the third and final pillar is represented by the letter N, which denotes NETWORK.
The author has listed certain pillars that resemble self-determination assumptions. These pillars relate to the requirements that individuals need to fulfil before achieving psychological growth. Find them below:
Autonomy
This is when the expectation is that individuals control their actions and objectives and feel a sense of ownership.
Competence
This is where the requirement is for people to gain mastery of tasks and learn diverse skills. Believing in your skills increases the likelihood of taking action towards achieving your goals.
Connection
This is where the requirement is for people to relate to other people across the network. When people experience a sense of belonging and attachment to others, they can see self-determination to achieve things.
Today, one cannot do without any of these technology like IoT, Cloud computing, Drone technology and Artificial Intelligent. If combine this technology with F-Ojes Model, it will surely position businesses and individuals.
References
Birley, S. and Westhead, P. (1993). A comparison of new businesses established by “novice” and “habitual” founders in Great Britain. International Small Business Journal, 12, 38-60.
Iacobucci, D. and Rosa, P. (2010). The Growth of business groups by habitual entrepreneurs: The Role of Entrepreneurial Teams. Entrepreneurship Theory & Practice, 34,351-373.
Premaratne, S.P.,(2001). Networks, resources, and small business growth: The experience in Sri Lanka. Journal of small business management, 39(4), pp.363-371.
Rosa, P. (1998) Entrepreneurial processes of business cluster formation and growth by “habitual” entrepreneurs. Entrepreneurship Theory and Practice, 22, 43–62.
Santamaria, S. (2018). Company growth or business growth? Business group formation as an entrepreneurial growth strategy. https://business.uc3m.es /seminarios/ filesem1542013693.pdf (Accessed 2nd October 2022).
Ward, A.M (2020). Finance: Theory and Practice, Chartered Accountants Ireland
