Five Ways for Freelancers to Save Money

Posted by Ryan Howard on Jun 21, 2022 7:56:00 AM

Five Ways for Freelancers to Save Money

With the federal reserve raising interest rates for the first time in nearly 30 years, economists are expecting a slow down in business growth. They've been talking about a recession for a few years now but then we were hit with a pandemic that shook up everything from the supply chain to the location of the workforce. If you are growing a freelance business, you're likely concerned about what to do if your own business slows down. Is your business recession ready?

Here are five ways for freelancers to save money.

 

Look at Your Cash Flow

Saving money starts with examining your cash flow. Do you know the value of your cash reserves, accounts receivables, or collections? You might be leaving money on the table if you're not invoicing regularly or following up on invoices that aren't paid on time. Take a look at your cash flow to determine if you're coming out ahead or dealing with expenses that are taking a chunk out of your bottom line.

Examine Your Expenses

It's so common for freelancers and small businesses to invest in an app or software that they needed at one time but don't need anymore. Review your expenses to cut back on unnecessary or expensive items. Also, make sure you're tracking mileage or keeping receipts for things that you can write off on your yearly taxes. 

Separate Personal from Business

If you're using your home as your office, it's important to separate your personal expenses from your business expenses. There may be some home expenses that can be used as a write-off on your taxes.  Create a separate banking account for your business to pay those expenses as well. This exercise provides more clarity on what you're spending on your business.

Best Practices for Organizing Small Business Accounting

Negotiate

Now's the time to tap into those negotiation skills. Use them to negotiate better pricing for your supplies, software, or other necessary overhead items for your business. Use them to upsell to your current clients or get paid a higher rate. Often, a long-term client may be paying at a rate you charged when you first started your business. If the costs of doing your business have gone up, it's only fair to share those costs downstream with your clients. 

Get Help... for Free

Many third-party commercial debt collection agencies won't charge a fee for helping you unless they're successful. That means if you don't have the resources to chase down clients who aren't paying, you can outsource it and not lose any money for trying.  If they are able to collect, you will still receive funds that you'd already written off as bad debt. The fee will be a small percentage of what was collected.  HOW MUCH TO HIRE A  THIRD-PARTY COLLECTIONS AGENCY?

The nature of Commercial (B2B) accounting and the sensitivity of business relationships requires expertise ranging from accounts receivable collections to high-quality customer service. 

In order to bring accounts back into orbit while maintaining the positive energy of established corporate relationships, Enterprise Recovery, LLC is proud to help freelancers get paid what's owed to them.

Let us know if we can help.

 

Topics: Best Practices, Business relationships, Hiring a B2B Collections Agency, Entrepreneurs