Why Small Business Accounting Practices are Ideal for Freelancers

An image of an accountant giving a presentation on a pull-down whiteboard

As a freelancer, you are essentially a small business. With that in mind, it’s a smart move to approach your finances like a company would. To do so, you should adopt some smart small business accounting practices, as it will help you to organise your funds on a short-term and long-term basis.

The day-to-day life of a freelance professional can be lonely in many respects and being your own boss will comes with a huge level of responsibility. For many reasons, being the head honcho of a business is ideal, but for others — such as the burden of keeping your finances in order — it can become quite a testing task.

Accounting for small business is something that our team handle on a daily basis. As accountants Milton Keynes-based companies and others from all over the UK come to for financial advice, we understand the difficulties that plague small business owners on a daily basis. So here are a few essential steps that freelancers should take to get on the right path for a successful career.

Separate Accounts for Business and Personal Finances

If you haven’t already, you should have set up a separate business bank account by now. While this isn’t a rule that’s set in stone or a legal obligation, it will certainly make your life (or your accountant’s life) much easier when the tax return deadline comes around.

Business expenses are also worth considering. A photographer can’t work without camera equipment and web designers can’t work without a computer. These are the sort of purchases you will want to claim against your business for tax purposes. This could prove to be pretty difficult if you’re searching through a mixture of personal and business expenses in one account.

Professional Small Business Accounting

While the budget of a freelancer or small business owner will be tighter than larger companies, some expenses and services are a worthwhile investment — one of which being professional accounting for small business. Not only does this give you the peace of mind knowing that your accounts will be in order as the dreaded tax return looms, but it also frees up more of your time to spend on other vital aspects of running a business.

As a firm that specialises in accounting for small business, our Milton Keynes accountants is the ideal choice if you’re in need of advice or help with your finances. We work with small companies on a daily basis, so we are familiar with the financial troubles that small businesses face. Budgets are understandably tighter which is why accounting fees for small business are more reasonable to that of a large-scale firm.

Combine Online and Professional Small Business Accounting

Online accounting software has been a revolutionary addition to the world of finance. Business owners all over the world have begun to use various apps to organise their finances with a click of a mouse and tap of a phone scree. It’s ideal for the modern day freelancer who spends lots of their work hours behind a computer screen.

With that said, despite the benefits of online accounting software, there’s a lot to be said for using it in tandem with a professional accountant. Although you may be able to organise your ingoings and outgoings in an orderly fashion, our professional Milton Keynes accountants will be able to spot any irregularities or ways that you could be benefitting more financially.

Technology continues to evolve and amaze us on a daily basis, but the wealth of experience provided by a professional accountant shouldn’t be disregarded. With the decades of knowledge and reasonable small business accounting fees we offer at Aston Black, the option to hire a professional accountant remains as important as ever for small business success.

The amount of small businesses and people opting for freelance careers has grown massively in the digital era. With such a wide range of new career paths and new companies on the rise, the business world is more competitive than ever. That makes it an essential goal to apply yourself to the best of your ability — and one vital aspect of doing so is adopting the necessary small business accounting practices.

If you’re a freelancer in need of financial advice or assistance, you’ve found the right place. Call Milton Keynes accountants Aston Black today on 01908 760293 or use our contact page for more information on the incredible services we provide.