3 Financial Lessons To Learn From 2016

Google reviews
November 25, 2016
n

Taking stock of the year, you’re doubtlessly analysing what went right and what, in hindsight, could have been different. Regardless of the changes, you may have experienced, one thing remains the same as ever – our desire for protecting our finances and maximising our earning potential.

But of course, very few freelancers and contractors are perfect where accounting and bookkeeping are concerned. We’d like to remind you of lessons to take on board for 2016, and how to lessen your money woes…

No more vanishing receipts

Keeping receipts safe and secure should be a top priority for any self-employed professional; they support every expense claim you make, minimising your tax bill at the end of each financial year.

Yet, paper receipts are tough to manage. Over the year, you’ve probably made hundreds of purchases flitting between aspects of your professional life. The process of physical collection is outdated and, frankly, detrimental to your organisational skills.

Next year, why not switch to a digital receipt storage system instead? Instead of losing folders, laminated pockets and whatever else you relied on, the data will be there on your screen, accessible from any location

No more underselling yourself

The newly self-employed can underestimate what they’re worth, simply because they don’t want to lose out on work. Low fees can also haunt established freelancers, who haven’t matched their growing reputation with a price that befits how experienced they are. Whatever stage you’re at, it’s good to consider your rates for the coming year.

Do some research beforehand, gauging the reaction from fresh prospects, who might respond to the higher rates better than you’d think. Then consider how to approach your existing clientele: can you explain the increase as a natural extension of your relationship? Or would you rather delay it for your biggest income providers, giving them ‘special’ status in recognition of their loyalty?

No more cash flow woes

Freelancers and contractors must balance the twin pressures of incoming and outgoing cash, ensuring they’re always in the black with their bank accounts. During 2016, you may have found that your cashflow has been a little rocky, as mistimed expenses and late client payments have hit your take-home pay more than you’d like.

Thus, there’s probably a need for a more comprehensive approach to handling your accounts. With a team of specialist accountants to provide advice, working in tandem with bookkeeping software like FreeAgent, there’ll be far fewer surprises to cope with.

You should also make a concerted effort to chase your overdue invoices with diligence – if you’ve made a stipulation for a payment date, stick to it, or draw up penalties for late payments. In doing so, you’ll be able to better plan your cash flow.

Far from dwelling on any hang-ups you’ve had in 2016, now is the time to step up your finance skills as the New Year comes into view. Bright Ideas can simplify the process, to help you create a more sustainable business model. Call us on 0161 669 4221 or email Info@biaccountancy.com for a financial aid that’ll last well beyond the next 12 months….

3d red neon light number 3

Resources

Recent Articles

Businesses look to increase home working

Businesses look to increase home working

The number of businesses planning to increase home working for staff has risen according to the latest official figures. In late May 2024, around one in five (19%) businesses said they either had or were intending to raise the number of staff who are working from...

HMRC app helps with student finance applications

HMRC app helps with student finance applications

An app from HMRC which provides information such as your National Insurance number and tax information has been flagged by the taxman to help students completing their A’ Levels this year and planning to head to university in September. Anyone who is applying for...

Want to avoid fines from HMRC? Here’s how

Want to avoid fines from HMRC? Here’s how

No-one likes to pay more to the taxman than they have to, but if you fall foul of HMRC’s rules, you could find yourself paying a penalty, and interest if things are not sorted out quickly. There are various fines you could face from HMRC if you get things wrong, and...

Ready to join us?

Whether you’re a contractor, freelancer, or small business, Bright Ideas can help remove the burden of time-consuming and complex finances. We’ll draw on our years of knowledge and experience earned helping sole traders just like you.

When you choose us, you’ll be assigned a dedicated Account Manager who’ll provide one-on-one support that’s customised to your business. Communication is key, so we’ll always answer your questions or requests as soon as we can. In fact, we offer a same-day response guarantee for emails and calls received before 3pm.

Contact us to get started

Give us a call us or send an email today!

Looking to switch accountants?
We make the transition simple.

Does your current accountant give 1-to-1 support? Are they fast and thorough?
Slap-dash services hold businesses back, so try our experts instead.

Move to an accountancy service that goes the extra mile…

Start the conversation

Let’s make your finances Brighter

Call us Monday to Friday 9am - 5pm

0161 669 4221

Request a call back