Running a freelance business is no easy task and may be as complicated as running a small business. You might not have any employees, but you still have to deal with the financial side. Taxes, expenses, and income all need to be tracked properly.
Many freelance businesses use simple Excel spreadsheets to track everything, but that may not be enough. You need freelance accounting software with the right features to keep your business on track. The ideal software for your business will have all the features you need but will still be affordable. There are a lot of options out there, so how do you choose? Here are some things to keep in mind as you decide.
What features do you need?
When it comes to choosing the right freelance accounting software, look for features, not price. Make sure your software has these capabilities, at a minimum:
- Customer billing. You want to get paid, right? This aspect can often be difficult, so find software that makes this part easier. Your software should make it simple for you to bill customers and make it convenient for clients to pay you—a win-win situation!
- Billable expenses. No matter what type of business you own, it’s essential to keep track of expenses. The right freelance accounting software will not only track expenses but easily put them into invoices and mark them up to boost profits as well.
- Mileage tracking. If your business requires travel, you’ll want to easily track your mileage, not only so you can be reimbursed by clients but also for tax purposes. Software with a built-in mileage tracker is ideal.
- Separation of bank accounts. As a freelancer, it’s a good idea to keep your personal and business expenses separate, especially for tax purposes. The right freelance accounting software will allow you to do this easily.
What features are not necessary?
Many software options come with a lot of bells and whistles, and while they seem cool, they may not be necessary. Why pay a lot more money for features you don’t need? As a freelancer, you need to understand what types of features you don’t need so you don’t overpay.
- Balance sheets. Freelancers don’t typically have a lot of business debt or fixed assets to track, so this feature is not always necessary. Freelance businesses generally don’t need any special reporting tools. As long as your freelance accounting software offers profit and loss statements, you should be good.
- Payroll. If you don’t have any employees, you don’t need features that allow for payroll. It can be a costly expense, so if you don’t need it, don’t get it right away. As your business grows, you can add payroll services later on.
- Multicurrency support. You may think you need advanced tools in foreign currency if you do business in other countries, but that is rarely the case. You can usually get the support you need from free websites. Your bank may be able to give you good advice, too, so don’t feel like you need to pay more for this software feature.
Why you should choose Hectic’s software
Hectic offers an all-in-one freelance accounting software option to help you stay on top of your business finances. We make it easy to bill expenses, pay taxes, and calculate profits.
We offer the following:
- Organization. Easily categorize expenses and even attach receipts.
- Clear views. In just a few clicks, you can attach invoices and see what your clients owe you at a glance.
- Link to a bank account or credit card. Just link your credit card or bank account and our software will autopopulate all expenses, making tracking easy.
- Third-party compatibility. Hectic’s software works seamlessly with Quickbooks, Zero, and other accounting software.
Hectic can bring balance to your books. Create your account and get started today.
Contact Us Today
Hectic offers freelance accounting software as well as other resources to help your freelance business succeed. Let us help you stay organized. Contact Hectic today to see how we can support your freelance business.