Many freelancers have been struggling to balance their income with the expenses they face. Since they are considered independent business owners, they have to pay increased attention to how cash is flowing through their business. It is widely known that the significance of expenses outweighs one of profits because losses loom greater than gains. Tracking down expenses may sound complicated and time-consuming, but once it is applied, it can really be beneficial for any freelancers.
So, what are the benefits of tracking your costs?
Tracking down expenses creates financial awareness – You don’t want to track your expenses just for the sake of history. You want to track your expenses to actively see where your money goes. What your habits are? What does your consumption behaviour look like? Can you alter it? Can that benefit your work? Believe me, the smallest amount can have a huge impact. It might sound cliché, but millionaires are aware exactly of how much they earn, but they know even better how much they spend.
Stick to your budget – As a freelancer, there is a monthly/yearly budget that you have to stick to. That budget is the one that acts as available cash, ready to be spent in necessary consumables such as paper, gas – you name it. That budget is the one making your company financially healthy. That budget can be compared to your actuals, making sure that your business is on the right path. Leading to our next point.
Forced to spend on Priorities – Having an overview of your finances can help you channel your effort to tasks and purchases that really grow your business. Without an infinite amount of money to spend wherever someone wants, there is only so much money to go around. Prioritise where you spend and soon setting and meeting goals will become much easier.
How can you track down costs?
There are multiple ways of doing it. Pen and paper, excel spreadsheet, software, application are just some examples. Make sure that you stick with something that is reliable and efficient when it comes to data entry. You don’t want to spend much time on getting everything down, because soon it will be a chore for you and you will stop doing it.
In Klippa we take reliability and efficiency serious. We developed an application that makes all of the above key points an easy and pleasant task. With OCR technology inherent in the Klippa Pro App you can just take a picture of a receipt or an invoice, and all the relevant information will be noted down automatically. With the interactive dashboard. you can have a financial overview with just a few clicks!
Waste no more time & money. Check the Klippa Pro App.
Are there questions? Get in contact with us at [email protected]