Practical tips for freelancers
Organise everything in tax years.
The most time-consuming and annoying task you will have to do as a freelancer in the UK is submitting your annual tax return.
I find the tax return annoying because much of it refers to things I was doing more than a year ago, and I simply cannot remember the details. If I failed to make a record, I'm stuck.
So start your filing systems (electronic and paper-based) with the tax year, not the calendar year, as your basic unit of calculation.
If you're going freelance now, start a file/directory called '2005-2006', and add to it all the projects, income and expenses you complete, earn and incur until April 5th 2006, at which point start another file/directory called '2006-2007'.
The tax office won't want the detailed contents of your '2005-2006' file until January 2007. This is why the whole system challenges the memory.
Keep everything related to one tax year together
Just to drive home what I've just explained, if you keep all your expenses records for 2005-2006 together with the invoices and work done, it will make the task of doing your tax return much simpler. Add up all the numbers and put the totals in the correct boxes on your tax return form.
A good accountant is worth every penny
Even though they charge you money, a good accountant will save you tax payments. But you still have to keep good records, as described above; even the best accountant can't help you if you haven't got the figures to hand.
To start with, you don't need to spend a fortune on stationery
If you already have work coming in, or a bunch of clients you can rely on, don't spend money on business cards or headed notepaper, you'll just be wasting it.
Invoices don't have to be branded either. I've found a fairly simple .rtf file is the most effective cross-platform means of sending invoices electronically.
Be nice when chasing invoices
Chances are you will need to follow up some invoices that haven't been paid. It's worth remembering that in most medium to large companies, the people responsible for paying your invoice (the accounts department) will not be the same as those who commissioned you to do the work.
Don't call the accounts department and be cross and grumpy at them. Don't shout abuse or make silly threats. Be nice. These people are just doing their job, and it's very likely that the non-payment of your invoice has a perfectly reasonable explanation.
If you're owed money, just be polite and good-natured; you're just spending an afternoon catching up on some paperwork and noticed that this invoice hadn't been paid, and would they mind checking their records?
You will get a much more helpful response if you act nice, even if underneath, you're seething with rage that they haven't paid you.
Discipline yourself to work
This is one of the hardest things to do, and varies enormously for different people. Personally, I find a looming deadline provides all the discipline I need, and work more efficiently when one has been imposed.
Work in a manner that suits you. If you work better in silence, switch of the radio. If you get easily distracted by the internet, resist the urge to visit your fave IRC channel or browse the unread posts in your RSS reader.
Think to yourself: "I'm a professional. I have to deliver professional quality work." What working conditions bring out your best stuff?
Price yourself well
Find the average for your market and refuse any work that pays less. Remember, when quoting your daily rate to a customer, that next month you might not get any work at all. Anyone in business who has worked with freelancers before knows that good ones cost good money. They are paying you for your professionalism, experience, expertise, and flexibility. Charge them accordingly.
Get used to variable income
There will be times when your income seems to dwindle to almost nothing. Don't worry, because there will be other times when the phone just doesn't stop ringing, and everyone wants you in the same week.
There's a good side to this. During the quiet times, when there's not much work to be done, you can be getting on with other things. Gardening, reading books, professional research, higher education, playing with your kids, DIY jobs. Accept that being freelance means there will be times like this, and plan in advance to make the best use of them.
Get used to cashflow weirdness
One magazine I worked for commissioned me in February. The article was for the July edition, which comes out in June, and the copy deadline was the end of April. Company policy was to pay within three months of publication. I got my cheque in October.
Not every job will be as crazy as that (hopefully very few of them will be), but you should be prepared for money to arrive some time after you've done the work.
Sometimes, clients are just plain stupid
They might drive you crazy with ridiculous requests or outrageous changes to the work part-way through a project.
If you think it's wrong, don't start shouting. Talk to the client on the phone and calmly voice your concerns; ask if there's some way you can assist them with reaching some clarification. If they still want to press ahead with Project Insane, you have a choice: do what they want, no matter how stupid, and take the money. Or politely tell them you have other commitments and need to withdraw. Obviously doing the latter might ruin any chance of further commissions, but in some cases that might be a good choice in the long run.
Your clients' office politics affect you
The guy who commissioned you to do Project X might be a very reasonable and smart person, but his boss might be from Planet Foon. Sometimes, your clients' bosses might make things very difficult for you, and in situations like that you need to know that the person who commissioned you is not to blame.
Be honest
If you're swamped and there's no way you can take on anything else, say so. Don't take on work you cannot complete on time or to a high enough standard; having a muddy reputation will not help you in the long run.
Labels: work
