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.
Furthermore, the only features useful to freelancers are tax calculation, mileage tracking, tracking number of orders. In addition, invoice tracking and having the accounting tools on cloud-based, which makes it easier for freelancers to manage.
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.
Two QuickBooks products are actually useful as Accounting Tools Relevant for Freelancers. They are QuickBooks self-employed and QuickBooks Online Simple Start.
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 provides time-saving tools to run your small business efficiently
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.
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.
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
- 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 freelancers to be more efficient
- 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.
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.