As a freelancer, you may find that you have so much freedom in your hands. But as your freelancing journey continues, you will also realize that this freedom is balanced by a set of responsibilities.
And among the tasks that you need to step up to and fulfill is keeping track of your freelance earnings. Not only does this train you to be more meticulous about the flow of cash from your profits, but it also instills responsibility and accountability as part of your work ethic.
So, how do you go about and track how much you make over a certain period? Here are some tips for you to ponder on:
· Set up an invoicing system.
Before anything else, you need to learn how to create your invoicing template. Or, better yet, take the shorter route and grab an invoice generator. Either way, if you want to record your freelance earnings, you need to have a system in place where you can enter vital numbers into for proper documentation and easier retrieval for future use.
· Learn how to categorize.
Whether it’s classifying your net earnings per client or per month obtained, grouping cash flow together gives you some perspective on where you get most of your income from.
For example, if you categorize per client, then you’ll learn which ones are your “regulars” that bring you a steady stream of earnings as opposed to the ones who just seasonally pop by. Similarly, if you take a look at a monthly perspective, you will be able to observe which are the lean months that need rainy-day funding.
· Create compartments.
Finally, keeping track of your freelance earnings would be much easier if you kept your business income separate from personal spending. First off, create a separate bank account that handles personal transactions. Next, have another one solely dedicated to your business expenses to track your spending and revenue. This way, you will be able to see how much you really earn, net of the expenditures you incur to support your freelancing gig.