Charge Your Worth. How to Discuss Freelancer Fees With Your Clients.

Charge Your Worth. How to Discuss Freelancer Fees With Your Clients.

by | Sep 14, 2021 | Blog, Resources

Have you ever panic-priced yourself? It’s my term for when someone asks you for your rates and you spout off a sad number that is way lower than what you actually want to charge. I’ve done it more than a few times, especially early in my career—in job interviews, discovery calls, and casual chats with people who were genuinely interested in paying me a good rate. Imposter syndrome would possess me right at the moment I was prepared to advocate for myself, and I would sputter out something entirely different than what I had planned.

Talking about money is uncomfortable for most of us, and especially so when you’re first establishing yourself as a freelancer. It’s awkward to name a price for your own work when you’re still building confidence. And sticking to that price can be tough if you’re faced with any resistance, real or perceived.

Many of us are guilty of dropping our freelancer fees early on in order to appease clients. Sometimes you just need the money and options are slim. Sometimes an opportunity comes around that could lead to great referrals and future work, and it’s worth it to accommodate. But it’s important to recognize the difference between strategy and self-sabotage. The former moves you forward; the latter keeps you stuck in place. So before you go forth and rate-slash, try these tactics for navigating common scenarios.

Talking about money is uncomfortable for most of us.

Scenario #1: You present a price and your client pushes back.

First, a word: You do not need to negotiate. Read that again. If someone questions your price or asks for a lower rate outright, you are by no means required to work with them on it. Your rates are your rates, just like watermelons at the grocery store cost… watermelon prices. Of course, offering flexibility will help you land more clients in the long run, but it’s important to remember that you have not signed a blood oath requiring you to accommodate people just because they ask. Okay. Great.

 

Tweet from Kat Boorgaard reading potential client: can you do a lower rate if we commi to having way more regular work for you. me: does your utility company charge less when you use more power?

Now, there are a couple of simple ways to navigate this conversation. First, instead of lowering your price automatically, try explaining the actual value of what you’re offering. Give them a detailed breakdown of your services, focusing on the positive impact this work will have on their business. If you’ve done similar work for other clients with KPIs you can reference, this is a great time to whip out those examples. If they don’t bite, you could instead offer to reduce the scope of the project to honor their budget, so you’re still charging what you deserve.

 

 

Scenario #2: You’re in the middle of a project and your client wants to adjust the scope and add more work.

Remember: No. Blood. Oath. Unless your contract says so, you are not required to take on additional work or shift your priorities just because your client requests it. (Hopefully, your proposal and contract explicitly laid out the work you’re doing for them, so you can refer back to it in these moments.) So if you’re not interested or able to do the work that your client is suggesting, you can absolutely push back.

But let’s say your client comes to you and they want to switch gears because their priorities have shifted or there’s more work than expected. If it sounds like a good move for both of you, then you could try offering to adjust the scope of the project for an additional cost. Remind them of the original scope and explain to them that, because the scope is increasing or changing, there will be an additional charge. You can also offer to amend the contract to document these changes so everyone is on the same page. You should absolutely make sure any conversation around changing rates or scope is documented in writing so you can refer back to it later, just in case!

Scenario #3: A project is deemed complete but the client comes back with heavy follow-up questions or requests for revisions.

This is a very common scenario, and a great opportunity to practice boundaries with clients. It’s easy to jump right in and offer unpaid help to a client, especially once the invoice has been paid. But your time is not free. So when someone requests your help, it’s important to be clear about what you can and cannot do. One simple clarifying question? Sure. But if they send you time-intensive questions or make additional requests, then it’s time to discuss pricing (again).

In this situation, let your client know that you’d love to continue working with them. Then, share your hourly rate. If you had previously charged a project fee or some other price structure, they may not realize that you offer hourly work. You can give them a time estimate if possible and offer to send over an invoice for the extra hours if they’d like to move forward with your help.

Client pushback isn’t the signal to say no or give in entirely—it’s an opportunity to find a win-win.

The Takeaway


If you leave this post with one piece of wisdom, we hope it’s this: Client pushback isn’t the signal to say no or give in entirely—it’s an opportunity to find a win-win. These scenarios may test your confidence and your communication, which is kind of awesome. Having your freelancer fees questioned and navigating tricky conversations is great practice. It helps you build those muscles, so someday soon, you can have money conversations without stress.

    Time to Get Paid: How to Easily Create and Invoice Your Clients

    Time to Get Paid: How to Easily Create and Invoice Your Clients

    by | Sep 14, 2021 | Freelancer 101, Guides

    You’ve launched your freelance business (YAY). You’ve booked your first client (double YAY). You’re well on your way to becoming a confident business owner and making the money that comes along with that. At the end of month one with your new client, you’re feeling great about the future. The work is fun. You’re getting good feedback. You’re DOING IT. You’re a REAL business owner.

    But now… it’s time to create that invoice and get paid. Imposter syndrome sets in as you visualize yourself typing the numbers and hitting send. You don’t even know where to begin. Figuring out how to invoice a client can stir up lots of anxiety. We get it — it’s not always easy to ask for money. But it is necessary. And with a little time and practice, it gets easier and easier.

    We’re here to walk you through the basics of how to invoice your clients, including tips and tricks that make getting paid as painless as possible.

    What to Include in Your Invoice

    Whenever you’re invoicing your clients, it’s important to include key information about the services you’ve provided so your client understands exactly what you’re charging them for. The more explicit you are upfront, the more likely you are to get paid in a timely manner, because you cut down on all the back-and-forth.

    Here are the essential elements your invoice should include:

    A breakdown of the services you are charging for (including a time period, if that’s relevant here). Some clients may want you to be more detailed than others. Additional detail never hurts.

    Payment terms. Depending on the client and your service offering you might want to require some, or all, of the payment up front. This is something you definitely want to discuss with the client when you are negotiating the contract. If you are invoicing them after the fact, we recommend starting with net 15 payment terms (i.e. payment is due within 15 days of receipt) and then going from there if your clients push back. The earlier you get money, the better!

    How you want clients to pay you. Think through how you’re going to accept money. Some freelancers accept payment through a variety of methods (ACH, checks, Venmo, PayPal, credit cards), while others stick to one or two methods for easier tracking.

    • If you plan on accepting credit card payments or using services like PayPal or Venmo, keep in mind that fees will be deducted from your payment. You can easily build the additional cost into your pricing if you account for it upfront. Just be careful to not ignore this — these transaction costs can add up to a meaningful chunk of change over time.
    • If you plan to accept payment through ACH, make sure you’re including your EIN and any necessary routing and account numbers.

    Contact information. Invoices should always include your name, company name, business address, and email. Make sure that your invoice can stand alone, so that anyone at the company who sees it will know how to reach out to you. Oftentimes, the person paying your invoice is not your point of contact. Your invoice is likely to get sent from one person to another!

    Once you have all of the necessary information in your invoice, it’s time to send or schedule.

    Best Practices for Sending an Invoice

    Before you shoot your invoice out:

    Make sure you understand who the invoice should be sent to. Oftentimes, there’s someone from finance that will need to be included to get your invoice paid. Once you know who you should be sending it to, you can properly address it.

    Determine when you’ll send your invoice. Are you generating it immediately or in advance? Is this a recurring invoice with the same line items and payment terms? Or will it differ month-to-month? Also, think about your billing cadence–will you send biweekly or once a month on the 1st of the month?

    Be sure to write a quick note for the recipient. We suggest adding a little personality to your email so it’s not stuffy or overly formal. Make sure you say hi and let your client know that you’ve enjoyed working with them and look forward to future business together (as long as it’s in your and their best interest 😉 ).

    Other Invoicing Tips and Tricks

    If it works for your business, try to get in the habit of sending your invoices all at the same time. This will make it easier to keep track of who you’ve invoiced and who has paid. Getting money in the bank on a predictable schedule is the goal here!

    Don’t be afraid to follow up on unpaid invoices. Payment terms exist for a reason — so enforce them. If you’re shuddering at the thought of sending a follow-up message or charging a fee for late payment, remember that you can always refer back to the contract they agreed to and signed.

    Finally, be sure to use a methodical invoicing system that keeps you organized. It will save you a world of headaches on the daily and come tax season. With Harlow’s freelancing software, you can invoice your clients with ease, creating an easy and repeatable process so you get paid on time with minimal effort. Sign up for a free trial to see how it works.

    Freelancer 101: Your Ultimate Guide to Launching Your Freelance Business

    Freelancer 101: Your Ultimate Guide to Launching Your Freelance Business

    by | Sep 14, 2021 | Featured, Guides

    If you’ve landed here because you’re on the brink of launching your own freelance business, congrats! And welcome to the cool kids club. We’re fun, promise. You’re joining an eclectic population of dreamers and doers who have opted out of traditional work structures to run their lives a bit more creatively.

    Freelancing is on the rise — and for good reason. This lifestyle offers flexible schedules, remote working, greater autonomy, and loads of opportunities to try new things and learn as you go. Plus, most freelancers make better money than they did at their previous jobs. So all in all, it’s a pretty great move. *high-five*

    But… we know it can be intimidating to get started. You’re running a business, after all, and that comes with a whole new set of responsibilities, like sourcing clients, managing expenses, and filing your quarterly taxes (don’t forget). In order to help you breeze through the early stages, we put together this freelancer 101 guide, which walks you through the nine basic steps to launching a successful freelance business.

    Chapter 1: How to Build Your Network

    Our first piece of wisdom: Don’t do everything yourself. Look to the people who can help you get where you want to go. Building a juicy network of peers can lead you to tons of professional opportunities you otherwise wouldn’t have found. And since the best clients come from referrals, tapping into your network is a great place to start when you’re trying to find clients.

    Keep reading.

    Chapter 2: How to Structure Your Business

    Sole Proprietorship, Single Member LLC, or S-Corp. Did those words send a shudder down your spine? You’re not alone. It can be tricky to understand how and why you should structure your biz a certain way. We walk you through the options in layman’s terms.

    Get started.

    Chapter 3: How to Figure Out Your Pricing

    Before you land a client or even schedule a call with a prospect, it’s important to know your numbers. What is your hourly rate? Do you charge a flat project fee? How about a retainer? And when and how do you collect payment? Answering all these questions before you talk to your clients is key if you want to make enough to cover your expenses and live comfortably.

    Let’s do it.

    Chapter 4: How to Land Your First Client

    It’s the burning question for most new freelancers: How do you find and attract the right clients? The trick is to get very clear about what you’re selling first. Once you have a complete picture of your offering, it’s a whole lot easier to figure out who needs exactly that — and where you can find them. Hopefully you’ve already done a bit of this work while figuring out your pricing model. If not, now is the time.

    Here we go!

    Chapter 5: How to Create a Proposal

    On to the nitty-gritty. Once you’ve landed a potential client, it’s time to close the deal. For freelancers, that means creating a badass proposal that outlines the project scope and continues to sell the client on your services. This step-by-step guide will help you nail the landing and get one step further to a signed contract.

    Dive in.

    Chapter 6: How to Create a Contract

    We recommend you never start working without a contract in place. A contract protects you from liability, outlines payment terms, defines confidentiality, and more. Here we walk you through how to create a contract and what it should include.

    Learn more.

    Chapter 7: How to Create and Invoice a Client

    You’re off to the races doing great work for your client. Now, you gotta get paid. Here we walk you through the essential elements of a good invoice and share a professional Google Docs invoice template that you can copy and use to make your life a whole lot easier.

    Get to it.

    Chapter 8: How to Track Business Expenses

    Finally, we’re onto finances. Keeping track of what you’re spending your hard-earned money on is a huge, important part of successful freelancing. The better your books, the easier your life will be when it’s time to pay taxes or to chart your business’s performance. Get on it early — you’ll thank yourself later.

    Start tracking.

    Chapter 9: How to Streamline Project Management

    Trust us when we say that it’s very difficult to run a freelance business if you’re not organized. Don’t wait until the chaos gets out of control. Follow these key steps to make sure your project management and business is streamlined from the get-go.

    Become a pro.

    36 Best Apps for Freelancers to Manage and Grow Their Business

    36 Best Apps for Freelancers to Manage and Grow Their Business

    by | Sep 14, 2021 | Blog, Featured

    Having the right tool for the job is important for the success of any project. You (hopefully) wouldn’t try drilling a hole in the wall with a wrench. But sometimes we forget to apply that same scrutiny to the digital tools we use every day. Just like physical tools, the apps we use make a huge difference in our day-to-day work lives. Whether you’re creating an Instagram post, an invoice, or trying to destress between meetings, there’s probably a great app out there to support you.

    We know searching for apps and comparing functionality can be a headache, though. So below, we’ve compiled a foolproof list of the best apps for freelancers, from mindfulness apps to help you prepare or unwind from your workday to document management apps to keep you organized.

    Having the right tool for the job is important for the success of any project.

    Mental Health and Wellness Apps

    Calm

    Calm is our go-to app for soothing meditations to end the day. In addition to a great library full of meditations organized by theme, they also have Sleep Stories, which are narrated by celebrities and other folks with straight-up snooze-inducing voices. That would usually be an insult but, in this case, it’s a huge compliment.

    Headspace

    If you’re looking for help committing to daily meditations, Headspace might be the app for you. It has a guided program to help you deepen your practice. The app also offers a wide range of meditations with varying lengths. If you just have a few minutes between client calls, you can easily sneak in a 3-minute meditation. We also love the interface—it’s clean and clear, just like you want your brain to feel after a focused session.

    CHANI

    Into astrology? Honestly, even if you’re not, the CHANI app is worth a trial run. It distills your birth chart into consumable language, shares beautiful, customized horoscopes, and sends cute push notifications alerting you of the current energies. A productive way to take a break and get to know and understand yourself better.

    Communication Apps

    Slack

    Most of us know this one, right? Slack is a leader in team communication. It revolutionized this industry years back, and has continued to expand its functionality and integrations. If you need a great app to connect with co-creators, coworkers, clients, or whoever else, give it a try. You can create a workspace for free and customize it to make it your own.

    Twist

    Need help focusing? Yeah, us too. Twist is a great choice for distraction-free communication. Its biggest selling point is that it consolidates your communication apps, so you don’t have to hop around between your email inbox and your chat apps and get lost Googling photos of cheetahs and their emotional support dogs in between. (But actually, go look that up.)

    Voxer

    Voice notes are great when you want to find that happy medium between texting and calling. If you’re looking for a secure option for real-time voice communication, Voxer is the app for you. Like a Walkie Talkie for teams, it allows you to listen to messages as people speak or save them for later. Plus, it’s compatible with iPhone, Android, and the web for platform-agnostic comms.

    Grammarly

    If you’re a freelancer, chances are you don’t have a copyeditor on standby to point out when your em dash is misplaced. Luckily, you do have Grammarly. This free online tool points out spelling and grammar errors and offers suggestions to improve your writing, like simplifying your language or shortening your sentences. It’s saved us from many embarrassing moments.

    Hemingway Editor

    Similar to Grammarly, the aptly named Hemingway App helps you up your writing game, color-coding misspellings, hard-to-read sections, weakening phrases, and more. It also gives your writing a readability score and an associated grade level. We like its simplicity and pretty colors.

    Mixmax

    Need help finding your email flow? With scheduling, tracking, and automation features, Mixmax is the crowned queen of email management. It helps you increase productivity by cutting down on keystrokes and manual tasks. You can even embed polls, surveys, and booking tools into your emails to spiff them out.

    Accounting & Bookkeeping

    Bench

    Managing finances can be overwhelming for any small business owner, but especially so for freelancers. Luckily, we have Bench—the answer to our expense anxiety. Bench is an all-in-one bookkeeping service to help you stay on top of your finances. You even get access to a dedicated bookkeeper who can answer your trickiest questions.

    Truebill

    If you’re as subscription-happy as we are, you might find yourself scouring your business credit card statement confused about where that $3.99 recurring charge came from. Truebill adds transparency to your spending, tracking credit card charges, flagging new subscriptions, and alerting you of upcoming charges so you can keep on top of what you’re paying for. Managing dollars going out of your business is important!

    Learning & Education

    Coursera

    Want to brush up your design skills? Or learn more about customer marketing? Coursera offers skill-building courses from over 200 top universities around the world. You can even earn a certificate or a degree online with this powerful learning system. So when you’re ready to expand your service offerings or build a new skillset, scope their wide array of classes.

    Udemy

    Like Coursera, Udemy offers tons of engaging courses designed to enhance your skill set. The courses are led by experts in their respective fields, and there are over 155,000 to choose from, so you will literally never run out of options for new paths to explore.

    Creative & Social Media

    Canva

    We love Canva. It makes designing visual content easy and fun. Whether you’re creating a social media post or a pitch presentation, its intuitive interface and powerful features will help you make something truly stunning. Our favorite part: They have a library of amazing templates to choose from, so you never have to start from scratch. Oh, and they have a free version!

    InVision

    The name says it all. InVision helps you turn your imagination into reality. Its powerful product design platform is built for creators of all kinds. You can create a wireframe for your client’s website, product mockups for your next Rad Idea™, brand moodboards to visualize a vibe, and so much more.

    Note-Taking

    Notion

    We tried to resist the craze but it’s time to admit: We’re in love with Notion. Calling it a note-taking app is reductive. It’s, like, so much more than that. This code-free, drag-and-drop platform allows you to create amazing documents and dashboards to organize your thoughts, plan your projects, and streamline your brain.

    Evernote

    Evernote is the OG of the digital notebook world. It’s a fantastic companion for busybodies, creatives, and entrepreneurs (did I just say ‘freelancer’ in three words?) who want to capture their notes in one clean place and plan their next moves seamlessly. The app can even clip web pages, scan documents, and sync to your calendar for easy task scheduling.

    Bear

    Whether you’re a blogger, freelance writer, novelist, or poet, Bear can help you make the most of each burst of inspiration. The writing app is specifically designed for masters of prose, with markup features, focus mode, customizable typography, and more. Find your creative flow with this beautiful app.

    Community

    Workfrom

    Do you miss the social aspect of the office? Or do you just want the perfect cafe with great wifi and free refills for an afternoon of work? Workfrom can help with both. This virtual work community crowdsources the best coworking spots from freelancers just like you. Plus, they have an awesome, thriving Slack community for freelancers to chat, connect, and collaborate.

    Holisticism

    Holisticism is an amazing hub for the spiritually-minded entrepreneur seeking connection. (Did we just write a personal ad?) This magical community offers free workshops and engaging content, and periodically opens its doors for new members to join the North Node—a sub-community that helps spiritual creatives and entrepreneurs learn and grow together.

    Password Management

    LassPass

    What would we do without LastPass? Answer: Spend an hour a day resetting passwords. This handy password management app stores your passwords, generates secure ones, and allows you to access them across devices. You can even share passwords with your co-creators, family members, or clients to make for easy collaboration.

    1Password

    Geared toward businesses, 1Password is an enhanced security system for password storage, data protection, credit card protection, and more. It makes remote work easy for teams who share software and logins, and it allows for seamless form fills.

    Calendar Management

    Calendly

    If you’re looking for a great scheduling tool that integrates with your calendar and automates meeting communications, look no further than Calendly. This easy-to-use appointment tool makes setting up client calls simple. Their free plan is awesome for basic scheduling needs.

    Google Calendar

    This one needs no introduction. Google Calendar has it all. It integrates with just about every calendar-friendly app out there (and, of course, every Google app), allowing you to schedule meetings quickly, customize your reminder settings, and share calendars with people who need to know what you’re up to.

    Document Management

    Dropbox

    Dropbox is the giant of the document management space. It’s great for creators and businesses that have a whole lot of files to organize. It’s compatible with Android and iOS, so you can access your documents on the go from anywhere. And its collaboration features allow you to comment on files easily so you can simplify your workflow.

    Google Drive

    If you’re already a Google power user, Google Drive might be the answer to your document storage needs. Offering documents, spreadsheets, slides, and forms—and 15 GB of free storage—this system allows you to both create and organize all your files in one place. It’s easy to share and collaborate with other Google users too.

    Contracts & Paperwork

    LegalZoom

    Advice is a few clicks away with LegalZoom, the go-to app for people seeking legal help for their businesses. They work with a network of independent attorneys and match you with someone who can meet your specific needs. Whether you’re forming your business, drafting an agreement, or facing a legal challenge, they’re here for you.

    Termly

    Need help creating your privacy policy or adhering to compliance laws? Termly is an all-in-one solution for freelancers who want to stay above board but don’t know where to start when it comes to drafting legally binding language. Their interface makes it easy—you just plug in your info and generate a custom policy that you can copy/paste or embed onto your website.

    Payments

    PayPal

    PayPal makes paying and receiving money simple and secure. It integrates with many other platforms and services, so you can easily accept payments from clients.

    Stripe

    The go-to for online businesses, Stripe is a low-cost payment processing platform that allows you to accept payments and send payouts. Their business management system also makes it easy to track your sales and income, generate reports, and get a full picture into your business’s finances.

    AI Tools

    ChatGPT

    This next-level AI content tool is perfect for creating long-form and short-form content. Use ChatGPT for all your content needs, get answers to questions, develop plans, and get inspired with detailed responses.

    SEO.ai

    Working in 50+ languages, SEO.ai is the number one AI writer for SEO. From SEO-optimized content to identifying relevant keywords, this tool helps make those time-consuming SEO tasks a breeze by creating high-quality SEO content in a fraction of the time.

    Durable.co

    Building websites is a time-consuming task, to say the least. That’s where Durable comes in. This AI website builder generates robust websites with copy, images, and more in seconds. If you’re a freelancer who’s just kicking off your freelance journey, Durable is a great way to get your business website up and running.

    Aioseo.ai

    This all-in-one WordPress SEO plugin effortlessly improves your website search rankings. Did we mention it seamlessly integrates with your favorite social platforms like Facebook, Twitter, and Pinterest? This SEO tool also effortlessly connects with your Google Search Console. Get more website traffic and identify new areas of opportunity with Aioseo.

    Stockimg.ai

    Stockimg.ai creates AI-generated images for logos, posters, book covers, and more in seconds. If you’re a small business owner in need of a new logo or a content writer in need of stock images for a client’s blog, this tool has got you covered.

    Business Management

    Harlow

    Do you need an all-in-one system to streamline your day-to-day operations and get paid? We’ve got you. Harlow helps freelancers understand their priorities, get a full view into their clients and projects, and get paid for the amazing work they do. And best of all, it can all be done from one clean, centralized hub. Sign up today to give us a test drive.

    How to Track Business Expenses & Why It’s So Important

    How to Track Business Expenses & Why It’s So Important

    by | Sep 13, 2021 | Freelancer 101, Guides

    When tax season rolls around, so does freelancer dread. It’s time to count up all the expenses you forgot to log and figure out how to calculate your home office deduction. The process is filled with obscure questions and hazy requirements. Does the bathroom count in my home office square footage? Can I write off my vacuum cleaner? What about that label printer I bought when I was procrastinating on filing my taxes last year?

    Filing taxes as a freelancer can be anywhere from hellish to mildly inconvenient, depending on how diligent you are about tracking your business expenses and how educated you (or your accountant) are in tax law. Because the process is confusing and aggravating, many freelancers are less than thorough when it comes time to claim business deductions. In fact, 73% of freelancers overpay their taxes because they don’t claim any deductions at all.

    That sucks. That means loads of freelancers are losing out on money that they could have in their pockets right now. And we don’t want that. So in this post, we’re going to show you how to track business expenses seamlessly and keep more of your income. Here are the five key steps to doing it right.

    73% of freelancers overpay their taxes because they don’t claim any deductions at all.

    1. Educate yourself.

    The biggest challenge with filing taxes is that most of us just don’t know the rules. That’s no fault to us—people spend years learning this stuff. But even without a degree in accounting, you can get by with a little basic knowledge on tax regulations. Learning what qualifies as self-employed expenses is step one. The IRS says that any “ordinary and necessary” expense can be deducted from your taxes. That essentially means any expense that is necessary to run your business, like your software, cell phone, WiFi, and any subscription services you use for work.

    If you’re working from home, be sure to factor in all of the hidden expenses that come with managing your home office. You can deduct office furniture and essential equipment, like a new computer, chair, or printer, as long as you’re using them for work. And (importantly!) you can factor in the basic costs of living that contribute to your work. For example, if your office area is 30% of your total living space, you can count 30% of your living expenses (like rent and utilities) as business expenses.

    What else? Insurance premiums and certain types of retirement savings are also deductible. There are likely a whole host of other deduction opportunities for you too, depending on where you live and what kind of work you do. For example, if you use your car for work, you can typically deduct the cost of gas, so logging your mileage is smart.

     

    Hot tip: The app MileIQ is great for logging mileage because it automatically tracks your trips and creates a comprehensive record that you can reference come tax time and, if necessary, submit to the IRS for proof.

    2. Open a separate bank account.

    This one is so easy to skip over as a freelancer if you’re only paying yourself. Why not just deposit everything into your personal checking? Well, it makes everything a whole lot easier come tax season if you have a dedicated bank account for your business. Even if you don’t have an LLC, we highly recommend opening a checking account. Seriously. It’s a huge relief when you can view all of your income and expenses in one place, and just download an account statement to submit along with your taxes.

    If you’re spending more on your business than you’re earning and you’re worried about overdrafting, you might want to consider getting a business credit card to pay your expenses. There are loads of credit cards for small businesses that offer cash back rewards and low annual fees (or none at all). Again, having a dedicated credit card for your business instead of mixing personal and business expenses will save you many headaches down the line.

    3. Keep all of your receipts.

    I know, I know. It’s a hassle. But even freelancers can get audited by the IRS, and sometimes that bank statement just isn’t enough. Shove your receipts in a shoe box and let it gather dust in the closet for four years. Or, just use a tool like Expensify to snap a picture of your receipts so you can go paperless. The IRS will accept photos or physical copies.

    4. Stay organized.

    It will make your life infinitely easier if you spend 30 minutes a month organizing your expenses rather than waiting until the end of the year to scour your statements and figure out what all of those random charges were from. Plus, reviewing your finances regularly helps you catch erroneous charges and forgotten subscriptions when there’s still time to cancel them.

    Reviewing your finances regularly helps you catch erroneous charges and forgotten subscriptions when there’s still time to cancel them.

    If you’re not a log-expenses-as-you-go kinda person, try putting time on your calendar once a month to do this. Create a recurring monthly event in the first week or so of the month to review last month’s finances and log your expenses in your system of choice. You can use something as simple as a Google Spreadsheet or something more sophisticated. At Harlow, we’re working on bringing all of your bank account expenses into a single place, so you can easily categorize and organize your finances from one dashboard. Stay tuned!

    5. File your quarterly taxes!

    Finally, don’t forget about those four dates a year when you owe the IRS. As a freelancer, you aren’t just responsible for paying your income taxes. You also owe self-employment tax, which is 15.3% of your net income. (This is another good reason to log and deduct expenses!) The IRS expects you to pay taxes on a quarterly basis, so be sure to mark those tax dates on your calendar now, before you forget.

    If you have all of your business expenses in a separate bank account, it’s easy to prepare for quarterly taxes. A little recommendation: Link a savings account to your checking account and transfer 25%-30% of your income into that savings account each month, so you have more than enough cash on hand to pay your quarterly taxes throughout the year. Trust us: There’s nothing worse than getting stuck with a huge tax bill and late penalties come spring. Save as you go and you’ll save yourself the stress.

      Trust us: There’s nothing worse than getting stuck with a huge tax bill and late penalties come spring.

      We know managing finances can be one of the most overwhelming parts of freelance life. But with a little practice and a good system, it can be pretty painless (or dare we say… fun?). Like any other unpleasant activity, tracking expenses and filing taxes is a whole lot more pleasant when you focus on the ‘why’ (e.g. planning for the future) and do whatever you can to make it more pleasant. So when it comes time to scour your statements each month, grab your beverage of choice, put on a great playlist, and channel your inner accountant. You got this.