Things to consider when being self-employed

Being self-employed is great fun and has plenty of benefits to it. Not only do you get to be your own boss – which is a huge benefit – but you also get the freedom of making your own decisions and taking in all the income you bring in. (When submitting any returns, remember to include filing 1098 and 1099).  For a lot of people, starting up is a stressful period but now with the right determination and dedication, you can do it. It will involve a lot of hard work but when you have got a hang of things, we are sure you will enjoy being self-employed and the many benefits it brings. Below we look into three things to consider when being self-employed. 

Looking after your cash flow

When you are self-employed, the money you bring in is yours. If you don’t bring any money in, this means you are not getting paid at the end of the month. For this reason, it’s important to look after your cash flow and do everything you can to ensure you have new business coming in regularly. Make sure you are active in the market and pitching for new jobs as much as you can. At the same time as pitching, to get the higher paid jobs you will want to get as much experience as possible. This often involves keeping up with online training programs to keep your knowledge up-to-date. 

Make sure you have the correct insurance 

Make sure you have the correct insurance for the services you offer – the last thing you want is someone trying to claim against you. Often you will need public liability insurance but depending on what you do, there will be other insurance you may want to take out. This could include equipment insurance, credit insurance, life insurance and more. If you are unsure of what to take out, speak to a friend or family member who is self-employed. In most cases, you can pay for your insurance monthly or yearly depending on what you prefer and your cash flow situation. 

Keep track of your finances 

Your finances are very important as a self-employed individual. The more you look after them, the less stressed you will be and the more understanding you will have on what you can invest and not invest in. We would recommend using accounting software to keep track of your finances, this way you can see your profit and loss. You can also use this for invoices and keeping an eye on who owes you money. There are many different software’s out there that you can use, each with their own benefits. We would recommend using a trial of the software so that you can get hands-on experience with them. 

What things do you think you should consider when being self-employed? Which of the above tips did you find most useful? Is there anything you think we should add to the list above? Let us know in the comment box below. We would love to hear from you. 

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