Freelancer
Accounting & Bookkeeping for an Freelances
Latest technology-based freelancer platforms offer flexibility in work and payment, allowing freelancers to showcase their services and get compensated accordingly. However, managing finances across multiple platforms is crucial. Freelancers must understand pending dues, profitable jobs, and associated expenses. Bookkeeping is essential for two reasons: to ensure profitability and to remain compliant with government taxes and regulations. By tracking accounting numbers and comparing them with past performance, freelancers can make informed decisions, manage profits and losses effectively, pay taxes accurately, and avoid penalties.
Accounting Software for Freelancer
They are many bookkeeping software available in market. However Accounting software for freelancer require to have bank reconciliation feature , generate report for profit and loss , balance sheet , payable etc. Accounting software need to have blow features , readymade reports which are required.
✔ Bank, Credit Card Reconciliation
✔ Invoicing
✔ Create Bills, Expenses
✔ Track Accounts Payable
✔ Track Accounts Receivable
✔ Generate PO, Estimate
✔ Budgeting
✔ Profit and Loss Statement Report
✔ Balance Sheet Report
✔ Sales Tax (VAT/GST) Calculations
Reasons to do bookkeeping for Freelancer
Keep Business & Personal Account different
Freelancers should avoid mixing personal and business finances. Open a separate business bank account to track receipts, payments, and expenses accurately.
Know your Profit
Freelancers must track sales and expenses across clients and platforms. Accurate bookkeeping reveals profitability and helps manage hourly charges effectively.
Get Paid Fast
Freelancers should invoice clients promptly, set due dates, and utilize accounting software for payment links and automatic reminders for due bills.
Monitor Cash flow
Cash flow represents the money entering and leaving a business. Proper bookkeeping helps freelancers track cash flow and maintain positivity.
Tax Filing
Accurate accounting ensures correct tax payments, ranging from 0% to 30%. Document all transactions and manage journal entries for expenses.
Method of accounting for an Freelances business
Cash Basis
Many business use cash basis of accounting under Freelances model. Under Cash basis of accounting expenses or revenue is recognized only when they cash in received or paid . This method of accounting looks simple but have its own problem. As client pays Freelances after 1-2-3 weeks of interval this don’t give real picture of accounts. Before starting accounting for Freelances you need to select correct method.
Accrual Basis
Accrual accounting differs from the cash method by recording revenue and expenses when they are earned, rather than when payments are received. This approach provides a clearer view of a business’s financial health over time, smoothing out the fluctuations often seen in cash accounting.
For businesses that operate as resellers, accrual accounting is essential. For instance, if a sale occurs at the end of one month but the customer’s payment clears at the beginning of the next, accrual accounting accurately aligns these transactions, providing a reliable picture of monthly sales and overall profitability.
Checklist To Follow
| Checklist to Follow | Time | |
|---|---|---|
| Month End bank Reconciliation | Monthly | |
| Month End Loan account Reconciliation | Monthly | |
| Compare Actuals with budget of same month | Monthly | |
| Review Billable and Non Billable expense | Monthly | |
| Month End Journal Entires | Monthly | |
| Update Vendor Reconciliation | Monthly | |
| Update Petty Cash Balance | Monthly | |
| Raise Alert for Accounts Receivable exceeeding 45 days | Monthly | |
| Payroll Management | Monthly | |
| Monthly Tax payments | Monthly | |
| Monthly Compliances of TDS , GST , IT | Monthly | |
| Month End Reporting | Monthly |
Important report generated by Finslog Accounting for Freelances
There are many reasons to work with Finslog , few of them as below
✔ Compare Budget vs Actual Expenses, Income
✔ Key Performance Product
✔ Cash Flow Statement
✔ Accounts Payable Statement
✔ Profit and Loss Report
✔ Balance Sheet Report
Financial Goals to Freelances in Accounting
There are many reasons to work with Finslog , few of them as below
✔ Cash Flow Management
✔ Proper Documentation of Expense
✔ Correct Reporting of Sales Tax Returns
✔ Real-time Financials
✔ Key Performance Indicator
✔ Avail Cash Credit on Timely Payment
Why Choose Us?
Finslog is actively providing outsourced bookkeeping, Accounting , payroll and compliance services to small and medium business and CPA Firms. We will help you to identify the financial rations , indicators and performance readily, helping you to make the right decisions at the right time.
Upto 50% Reduced Cost
Upto 50% reduced cost compared to in-house services. Our service cost is lower due to cheap labour even thou no compromise in quality of services.
Time Zone Advantage
Favorable time zone advantage between India and US ensures high productivity and faster turnaround. We reply to mail within 24 hours.
Data Security
We use secured document management system with high end level of security. Business can rely on our services about documents safety along with Information.
Export Team
We bookkeeping team is combination of Chartered Accountant (CAP) & commerce graduates. We have expertise in bookkeeping & accounting.
Process-driven work
We developed process flow for start to end bookkeeping. We have checklist , formats and proven Project Management system helps to communicate.
Growth Services
Delegation of work helps business to give attention on primary business activities for growth. By outsourcing bank office you focus on Growth.
Quick Connect With Us
Part Time / Full Time
Resources For
✔ CPA Firms
✔ Enrolled Agents
✔ Bookkeeping Firms
✔ Tax Practitioners
✔ Business Owners
Why Finslog is the First Choice
for Accounting & Tax Preparation
Finslog offers expert, cost-effective, and reliable accounting services with a focus on transparency, efficiency, and timely results
✔ Experienced Professionals: Skilled team with years of experience ensures reliable and accurate results.
✔ Efficient Project Management: Self-hosted system enables smooth communication and seamless project handling.
✔ Cost Savings: Save 40-50% compared to local accountants without compromising quality.
✔ Transparent Processes: Clear workflows keep clients fully informed and confident in the outcomes.
✔ Quick Turnaround: Same-day or 24-hour maximum response time for inquiries.
✔ Regular Updates: Frequent email updates provide essential business information and progress reports.
✔ On-the-Go Meetings: Schedule expert meetings anytime for efficient communication.
✔ Meeting Deadlines: We complete work ahead of deadlines to ensure a smooth process.
✔ Comprehensive Checklists: Detailed, well-organized checklists eliminate confusion and ensure thorough coverage.
✔ High Quality Standards: Standardized procedures ensure error-free work and top-quality service.