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Top 25 Freelance Tools You Should Know About

Freelance tools like software and apps that help self-employed individuals run their businesses are necessary for success. Thanks to rapid technological advancement, software innovators have developed much-needed solutions to help freelancers, individual contractors, and consultants. Even small and medium-scale businesses are also benefited from these tools.

In fact, there are so many freelance tools available that you will have a hard time choosing just one. Business management systems enable sole proprietors and small businesses to manage their workflow. Easy-to-use design tools have made it possible for everyone to create killer marketing materials. And, of course, communication is now easier for remote work because of messaging apps. These software and apps have definitely made running a business more manageable.

Top Freelance Tools to Explore

As a freelancer, whether you are a newbie or have been in the business for years, it is best that you explore all the possible tools available to you. Maximize these tools to help you run your business stress-free!

Business Management Systems

Business management systems are heaven-sent for freelancers. As you would know, as a freelancer, you get to wear many hats. Not only will you be focusing on your profession, but you will also be doing your own marketing campaigns and attending to admin duties. This is where business management systems help freelancers. These software and apps will help you manage your business.

A. Freelance Management Systems

Freelance management systems are cloud-based software designed for both clients and freelancers to have a platform where they can collaborate. These management tools are primarily onboarding platforms where clients post their job requirements and registered freelancers bid to get hired. Through these freelance tools, clients get to remotely assign tasks and see real-time progress while freelancers report the progress of their projects.

1. Upwork

Upwork is one of the leading freelance management systems. You can easily build a profile in Upwork, and because it has a large pool of active clients in its system, you get more chances of finding a gig. Aside from having a work diary feature where you get to collaborate on the project with your client, Upwork also has invoicing and payment features.

2. Toptal

Toptal boasts of its “Top 3%” system. This means that only the most qualified talents get through their rigorous screening. As a freelancer who gets accepted into the Toptal database, you can be assured that you can land high-paying clients because of the platform’s exclusivity.

3. Worksome

If you are looking for a freelance management system that also helps you with compliance, go to Worksome. Worksome has internationally compliant contract templates and helps with compliance concerns so tax season will not be a nightmare for you.

B. Productivity Tools

These software enable freelancers to draft proposals and contracts, track tasks and income, and even manage payments. Productivity tools help you manage your time and overall project progression.

4. Kosmo

Kosmo is a complete project management platform. In Kosmo, you can create your clients’ directories along with their project-specific folders. It has features that allow you to do document management, progress tracking of tasks, and even customize contracts and invoices.

5. Calendly

As a time management tool, Calendly is a very convenient scheduler. It will help you set appointments and meetings, and even integrate your schedule if you are working with a team.

6. Grammarly

Projects that involve a lot of writing will benefit from Grammarly. Not only does this app correct wrong grammar, but the premium package also gives options on sentence construction and word choices.

7. Quickbooks Online

Quickbooks Online is an online bookkeeping and accounting software designed for small businesses. It helps you manage cash flow and organize income and expenses. As a freelancer who doesn’t have a team of accountants, this is a great tool for you.

Designer Tools

Freelancers need designer tools. And not only those that belong to the creative industry. Even other professions like accountants and consultants need designer tools, especially when creating portfolios, logos, and other marketing materials.

8. Canva

Of course, Canva makes the list. Canva’s extensive database of license-free images and fonts is helpful in making materials. Not to mention their templates of almost everything you will ever need in your business like presentations, posters, reports, and even short videos. Plus, it is so easy to use!

9. Adobe Creative Cloud

The Adobe Creative Cloud is a set of programs and software used for graphic design, photography, web development, book publishing, and video creation, among others. It literally has everything a freelancer would need to complete a creative or design project!

10. Apple iMovie

If you want to create demo reels for your audition, or a video for your group coaching project, then the Apple iMovie is one of the best apps available for you. A lot of video content creators use this program to edit their videos. It is, however, limited to use on Apple devices only.

Job Boards

classified ads page with marker and part of a telephone

One of the challenges of being a freelancer is finding gigs. Clients and projects are not easy to find, especially if you are just starting. Good thing there are online job boards. Through online job boards, freelancers can post their profiles and showcase their talents or products.

11. LinkedIn

If you are a freelancer and you don’t know LinkedIn, then you better step up. LinkedIn is a vast (and this can’t be stressed enough) employment and business networking site. Your profile serves as your resume, and LinkedIn automatically matches your skills to clients’ job postings. You will be notified as soon as a job that matches your skills is posted. It also has articles, tips, and ultimate guides for freelancers.

12. Indeed

Indeed, like LinkedIn is a software designed for job seekers. It also has an automated skills-matching system that matches your skills and talents with the appropriate job post.

13. Bark

Bark is another helpful career opportunity platform for freelancers. What’s different about Bark is that they also give priority to local freelance jobs like those who do garden scaping, physical fitness training, and even magic shows!

Communications

As a freelancer, you often work remotely, right? Sometimes, a real deal can even be done online. So one of the best tools you can use are the ones that can help you with communications.

14. Slack

Slack is a great messaging app mainly because you can create separate workspaces and channels for client communication. It is also an excellent tool if you are working with a team.

15. Zoom

Zoom has changed the way people communicate, especially in the last few years. This video conferencing software has made meetings, seminars, and even online classes possible. If you decide to go international and offer virtual services to clients from the other side of the world, Zoom is one of the best tools you can use to meet with your clients.

16. Google Workspace

Yes, it’s Google. And yes, they’ve got it all for you. Email? Yes, Gmail. Chat? Yes, Hangouts. Video conferencing? Yes, Google Meet. Put them altogether? Yes! What more can you ask for?

Industry-Specific Software

There are also software that are developed to improve and enhance industry-specific fields.

17. AutoCad

AutoCAD is a design software created for the architecture, engineering, and construction industries. It is used to render 2D and 3D designs and models, as well as electrical diagrams and drawings used for construction projects.

18. Capture One

Capture One is one of the most utilized software for photography. Not only is it best for tethering, but it is also used for photo editing and raw image processing.

19. Audacity

If you are into music production, then Audacity is a good tool to explore. It is used for audio recording and editing.

Website Builder

You should have a website. A website is the best avenue to showcase your work and present your business. After all, everything is now online. And clients looking for freelancers will be searching online. So having your own website is a good strategy for building your online presence.

20. Squarespace

Squarespace is a website building and hosting tool with a wide variety of pre-built templates that you can fully customizable. It is easy to use especially with its drag-and-drop features. Have fun building your own website!

21. Wix

Who says only web designers can create websites? With Wix, you can create a killer website easily! It also has a lot of customizable templates to choose from.

22. WordPress

WordPress is probably one of the most used web builders nowadays. It is simple to use and publishes content in seconds! It also offers domain name and web hosting services.

Other Freelance Tools

Three are other freelance tools that will help you run your business smoothly.

23. CocoSign

Cocosign is an electronic signature creator. As a freelancer, you definitely need an electronic signature. In signing your proposals, contracts, and invoices that are usually digital, it is best that you have a ready esignature.

24. Google Forms

There may be times when you would need clients to fill out forms. It may be inquiry forms or customer satisfaction surveys. Good thing Google Forms are here to save the day! Explore how Google Forms can help freelancers and how you can take advantage of this free tool.

25. Social Media Platforms

And finally, what could be more advantageous to freelancers than social media? Everybody knows that the world revolves around social media nowadays. It is basically used for everything. News, networking, marketing and sales, and even dating! Hey, if you do not have a social media page for your freelance business yet, then you now know what to do. Create one! Just make sure that it is entirely separate from your personal pages and that it is solely used for your business posts and transactions.

Conclusion

close up of a keyboard with a key on top

Because you go solo, every aspect of your business becomes your responsibility. You gotta do all the legwork. But as you would now realize, there are a lot of software developed to help you out. Continue having a great time as a freelancer, and remember, freelance tools are the key to your success.

Get Organized & Win More Clients

Kosmo has everything you need to run your freelancing business.

Post written by:

kosmo on November 15, 2022

Kosmo is a free All-In-One Workspace for Freelancers.

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Networking Plan for Bookkeepers – How to Beat Loneliness

Growth Networking

Having a networking plan for bookkeepers is as important as maintaining a good business plan. As a freelance bookkeeper, you often find yourself buried in tons of paperwork, right? Organizing records and crunching numbers are not easy tasks. You often find yourself working through nights and even holidays, especially during tax season. So how do you keep yourself together? How will you ensure you still have a healthy work-life balance while also making sure you run a good business?

Networking is Connecting

plastic game pieces on a white board connected with lines

Unlike the creative industries, accounting and bookkeeping are some of the more monotonous jobs. You work hours after hours scanning through and analyzing records and financial documents, which sometimes becomes a little too tiring. Understandably, because you need so much focus and meticulous records management, at some point, you will really start to feel drained.

This is why a networking plan for bookkeepers is important. It makes you connect with people. And connecting with people, in whatever way or means, is an excellent way to break a cycle. So taking breaks and networking will definitely be good for you. Otherwise, if you continue to keep to yourself and your work, there will come a time when loneliness may creep in.

Connecting to the world outside the four corners of your office has benefits. Not only will it be good for your mental and emotional health, but you also get to be attuned to the latest news and trends that can be useful in your business. Plus, you don’t know the great possibilities when you reach out and network. You may even land more clients and projects!

Networking Plan for Bookkeepers

Having a networking plan for bookkeepers is simple and easy. While it is true that you may need to exert some extra effort, the results are definitely worth it! You can do this. Take a deep breath and start reaching out more. Here are a few tips on how you can start networking and connecting:

1. Join a Bookkeeper’s Club

mug and laptop with blurred video conferencing on screen

Of course, who else can understand you better than your fellow bookkeepers? Bookkeeping clubs, organizations, and associations are created to provide guidance and support to fellow bookkeepers. These associations connect bookkeepers through discussion boards or forums online. Here you can discuss relevant topics and even off-topic matters.

Imagine sharing an issue with fellow bookkeepers and then realizing they also have the same sentiment. You can then start solving problems together, learning from each other’s experiences. These interactions can develop into newly formed friendships, and before you know it, you will be meeting and having coffee together!

Here are some of the most prominent bookkeeping organizations in the U.S. you can check out:

If you want to expand your network to a worldwide level, you can check out Digital Bookkeeper Association (DBA).

2. Explore Other Online Communities

Sometimes, you just need to clear your mind from everything related to accounting and bookkeeping, right? That is perfectly fine. Go online and find communities from other fields that interest you. This is probably where social media platforms excel the most; connecting people from all over the world through their interests.

If you still do not have a social media account, create one and start looking for pages that spark your interest. You wouldn’t believe how many pages are out there! Social media has communities of all topics and subjects, from dog lovers’ pages to arts and crafts to true crime stories.

A lot of friendships (and relationships) are started through social media. What’s even better is that you are not limited to your fellow citizens. You can also connect with people from other countries who share the same interests as you. Imagine the many stories you can exchange with each other!

3. Participate in Local Activities

Face-to-face interaction is still better than online networking platforms. It is more personal and sincere. You do need to get up from that chair and go out anyway. If your town or city is having a festival or any other particular activity, participate and have fun. Fresh air will do you good.

man on drums with other people on the street

Talk to your neighbors or start a conversation with your local baker. There really is something special when you look people in the eyes while talking with them. With your line of work, human interaction is minimal, and it can get pretty isolating. So, it would be best if you saw people. You need human interaction. Plus, if it is a holiday festival, it can make you feel extra cheerful. Even if it is a Halloween event!

4. Host a (Networking) Party

Preparing for an event, no matter how small it is, will help you beat loneliness. This is a good networking plan for bookkeepers. And because you are hosting it, you get to control the entire event. You decide if it will just be an intimate dinner for family and friends or a bigger party where your invitees can bring friends too. A bigger party will reunite you with friends and family and is a good way to connect with others. This is also an excellent opportunity to market your business and find bookkeeping clients.

champagne glasses on a tray with blurred guests on the background

Conclusion

You absolutely do not have to feel detached from the world just because your work buries you with hundreds of paperwork. No, isolation and loneliness do not have room in your life. Taking little breaks helps. Finding a hobby or joining small classes like yoga or pottery making is a great way to keep a healthy work-life balance too.

And, as a freelancer who typically works for hours alone, human connection is important. So go out and see people as much as you can. If you are the type who enjoys online interactions as well, there are a lot of ways to build meaningful connections too. Let this networking plan for bookkeepers help you!

Get Organized & Win More Clients

Kosmo has everything you need to run your freelancing business.

Post written by:

kosmo on November 14, 2022

Kosmo is a free All-In-One Workspace for Freelancers.

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Best Invoicing Software for Freelancers and Creators

Finance Invoicing

As a freelancer, it is only wise that you know the best invoicing software available to you. Invoicing is a very important aspect of your business as it ensures you get paid correctly and promptly. Knowing how to handle freelance billing efficiently will make your freelancing journey less stressful.

Admittedly, not all freelancers use invoice management software. Instead, they rely on verbal communications or simple email exchanges to bill their clients. However, the problem arises when there are disputes with the rates and payment schedules. Some freelancers even do not get paid on time.

So, what is the best way to make sure you get paid correctly and promptly? Use invoicing software. Online billing software for freelancers are easy to use, plus, it will definitely make your business look more professional.

Best Invoicing Software to Check Out

laptop on table showing an invoice with unidentified woman using calculator

Knowing how to invoice as a freelancer is a must. It is a good professional practice to issue invoices to clients. After all, you are actually running a business. Also, when tax season comes, you will need these invoices as these are legitimate records that your tax-collecting agency might look for. So, if you are still not using one, check out some of the best invoicing software for freelancers and see which one suits you best.

FreshBooks

One of the most user-friendly invoicing software for freelancers is FreshBooks. FreshBooks is an invoicing and accounting software designed for all types of businesses. They take pride in having features and solutions for freelancers and businesses of any size.

FreshBooks has automated the invoice generation process from creating your invoice to sending it to your clients and receiving payments. And because it is generally accounting software, all your financial data and transactions are integrated into one centralized hub.

Generating an invoice using FreshBooks is really simple; you just need to add your tracked time and expenses. It even has an automatic tax calculation feature. FreshBooks templates are customizable too, making your invoice look professional, and of course, branded specifically with your business. In creating your invoice, you can set it as a single invoice or a recurring invoice. The recurring invoice feature is best if you have a retainer agreement with your client. FreshBooks will automatically send your invoice based on the frequency you set. You can also set the app to send reminders to your clients and automatically charge late fees.

And here’s another cool feature of FreshBooks: you can set it to allow and accept online payments! So, once your client receives your invoice, they can pay directly from their email. It’s that convenient!

FreshBooks offers a free 30-day trial, and their monthly plans range from $15 to $55. Be on the lookout too for promos and limited-time offers!

QuickBooks Online

QuickBooks Online is another good invoice and accounting software. Like FreshBooks, it has features that can help you organize your financial records. You can even organize your receipts (you can take a photo of your physical receipts and import them too) to categorize your expenses easily. Quickbooks also computes taxes and sends reminders for when you are due for filing. It’s like having your own personal accountant!

The platform has customizable invoice templates where you can add your logo and custom color schemes. Invoice generation is easy. On the invoice template, simply add your client or customer’s details, set when you want to be paid (terms of payment), then add the due date and payment options.

In adding items to the invoice, a tab will pop out where you can choose what kind of product or service you are billing for. After you have finished your invoice, you can preview it before sending the email so you can see what it looks like. Once your invoice is sent to your client, they can click the “Pay Now” button from your invoice to pay you immediately. QuickBooks will instantly indicate that the invoice has been paid.

QuickBooks Online also offers a free 30-day trial, and their plans and pricing start from $15 a month. The platform has four plans available depending on which features you need and how many users will utilize the platform.

Bonsai

Unlike FreshBooks and QuickBooks, Bonsai is not mainly designed as accounting software. Instead, it is a freelance management software with features like contracts, proposals, and scope of work templates. What most freelancers love about the invoice generation feature of Bonsai is that they have invoice templates specific to a freelance profession.

Bonsai allows customization so you can tailor-fit your invoice according to your brand’s colors and add your logo. You can also easily indicate costs to your line items and add taxes or discounts. A space is provided too where you can add notes to your invoice.

You can create a free account in Bonsai, but if you want to take advantage of its other features, its pricing starts at $24 per month, which is their recommended package for freelancers.

Kosmo

Another freelance management system that has an excellent invoicing generation feature is Kosmo. Kosmo is a complete overall project management platform that freelancers use for time and task management and project progress tracking. In addition, the platform has customizable proposals, contracts, and invoice templates that are all integrated into your project’s file folder.

In creating an invoice, you can add tasks to be billed from the project folder or manually encode line items. The template allows you to add banners and logos too to make your invoice more professional. You can also add payment terms and methods.

What makes Kosmo a good tool is that you not only get to generate invoices but you manage the project as a whole. And as a freelancer who is doing all the legwork, you definitely need a complete business solution like Kosmo.

Creating an account in Kosmo is free, but with just as low as a $9 monthly subscription fee, you can already get to enjoy all the features they offer. Now, that is a good deal!

Simplybill

Simplybill is a simple invoice generation software. It is created to simply bill your clients (that’s why it is named “Simplybill”). With Simplybill, you can also customize your invoice by adding a header. You also have a space at the bottom of your invoice to add notes.

In your Invoices tab, you will see an overview of all invoices sent. From there, you can see which invoices are received, read, or failed to deliver. In addition, you can keep track of payments made and how long they have been overdue if they remain unpaid. Through the Simplybill dashboard, you can see a summary of your invoices, such as your invoicing history.

Simplybill is a good platform for freelancers who want a simple yet powerful invoice generation tool. Without the complexities of other integrated features, its simplicity is its asset. You get to use Simplybill free for 14 days, and then choose a package that starts at $5 monthly if you want to continue using the tool.

Conclusion

As a freelancer who doesn’t have a sure monthly income, it is pretty important that you manage your billings well. To some, discussing payments when it is due feels awkward. At the same time, other freelancers, especially those who are currently engaged in other projects, fail to keep track of payment activities and dues. This is why you should know how to invoice a client.

By using a competent invoice management software, you not only get to do billing duties efficiently, but you also make filing taxes a breeze. Because invoices already reflect tax amounts per transaction, you now have a database to check when tax season comes. This means no more nightmare tax computations!

Another advantage of issuing invoices as a freelancer is that your clients see your professionalism. They know that you are a competent business. This can translate to good reviews and testimonials, referrals, and even convert them to returning and regular clients! And that is good for business.

So, check out and explore the best invoicing software available and see which will work best for you!

Get Organized & Win More Clients

Kosmo has everything you need to run your freelancing business.

Post written by:

kosmo on November 12, 2022

Kosmo is a free All-In-One Workspace for Freelancers.

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Questions to Ask a Freelance Client Before You Get To Work

Client Management Growth

You might be wondering why is it so important to have questions to ask a freelance client. Well, with freelance work, if you want things to go smoothly it’s all about the preparation. And the most important step there is to have a proper talk or discussion with your client. Once you have all of the answers to your questions, you’ll have an easier time doing your work.

Just imagine, you are an artist and your client wants you to create a cartoon character. You start asking for every little detail that you can before you even pick up your pencil and start sketching. It’s way better than coming up with a character only to find out your client doesn’t like your drawing style or your color scheme. Having questions to ask a freelance client creates a solid foundation for you, it also helps in ensuring that both of you are on the same page. This way, your work, and effort do not go to waste.

Below are some questions that are usually asked before freelancers get to work. These are divided into 3 categories. The first pertains to the actual project, the other is geared towards the actual client, and the last is with regards to you, the freelancer.

Questions Related to the Project

When you find a potential client, of course, the very first thing you ask about is the project itself. Anything and everything about the project so you will know if you can actually take the job or if it is something you are capable of doing. Aside from the actual details of the project, below are some of the most important questions to ask a freelance client:

• What is the timeline and deadline of the project?

A clock, a calendar, a bull clip, a pen, and a notepad.

Take note that some clients require progress reports during the project while others are only concerned about the deadline. So, make sure to ask about both of these. Projects that have a specific timeline can help you structure your work before you get started. The same goes for having a deadline.

There will be no reason for you to procrastinate and you can give yourself ample time to do your work. It’s best to have a written agreement with your client when it comes to timelines and deadlines so there will be no confusion on your part. This will keep you from rushing through a project so you can submit deliverables that you gave your 100%.

• Who is the target market?

Before you get started on work, you need to know who exactly you need to cater to. Of course, you need to satisfy your client but apart from them, who else? Knowing who the target market is can definitely alter your work. Again, this should be in writing so that there isn’t a chance the target market is changed mid-way through your project.

Just imagine creating social media content for an education platform thinking that it is targeted toward students. But once you present your progress report your client says, it should be aimed toward the parents. Of course, your social media content needs to change because the angle for a student is different from posts that will appeal to parents.

• What are the goals or expected results?

You can’t just work aimlessly, everything has a purpose. So, you need to know what exactly is the purpose of your client’s project. By knowing the endpoint, you can better map out your schedule and tailor your work toward the expected results your clients want.

Questions to Ask a Freelance Client

Man talking on the phone, standing in front of a window showing surrounding buildings. On the foreground, a table with a glass, laptop, pen, notebook, and newspaper.

When you are working with someone, you need to get a little information about them. This doesn’t mean you need to get all chummy or be friends, you just need enough information to ensure you have a good working relationship. This will be especially helpful if you plan on working for this client for future projects or long-term ones.

• What is your working style?

Everyone has their own working style and learning about your clients can make your life easier. You need to know if your client has a tendency to micro-manage or if they prefer to get daily progress reports. Communication is key for freelancers and their clients, so you definitely need to talk about this.

When you know the working style of your client, you can also have an easier way of scheduling your work. Maybe your client wants weekly meetings, then you can add that to your calendar.

• What are your working hours?

One of the best things about being a freelancer is you get to work with just about anyone. However, the drawback here is the working hours. It’s fairly common to find a client who is at the opposite end of the world. So, you better work out a schedule for when you can talk. You don’t want to end up pissing off a client because you send them a question in the morning but it’s actually 12 midnight for them.

The same goes for you, you need to tell your client your own working hours so they will know why you aren’t answering their calls or messages. This is very helpful when setting boundaries and also if you are on a time-block work schedule.

• Which communication channel do you prefer?

Everyone is different, some clients are also introverts and prefer emails while others would rather video call. The important thing here is you know which channel you will use to communicate with your client. This way, you can actively check your phone and you don’t end up missing important discussions that may be sent through your email or Slack.

Questions About Freelancers

Now that you already know more about the client and the project, it’s time to make way for questions to ask a freelance client that will help you get a better grasp on the why. Why exactly did your client need a freelancer and what is it that you can do as a freelancer?

• What are your expectations from me (the freelancer)?

This needs to be very clear so that there will be no problem when you work. You need to know what it is exactly what your client hired you for. What do they want out of hiring you or collaborating with you? Are they expecting you to work 24/7? Do you need to be on call? Are you allowed to work for other clients or other projects?

All of these need to be discussed so that you as a freelancer will be able to satisfy your clients. It is also a chance for you to back away in case you are aware that you cannot meet your potential client’s expectations.

• Which products or services do you need?

Woman sitting in front of desk that has a laptop, mouse, mobile phones, and a book.

This question is best answered in black and white. You and your client should agree upon your actual tasks and deliverables. Before you start getting to work, you need to know what exactly you are in for. It may very well help to have a contract so there are no surprise billings on the end of the client and unexpected tasks on your part.

• Is there anything else you want to discuss with me?

Always give your clients a chance to express themselves. There might be something they want to share with you regarding their business, company, or project that you may really need to know about. It can be anything from their work schedule or the reason why a project is very important to them. This can very well help you become motivated and inspired to do your best on the project.

Tips for Asking Freelance Clients Questions

Remember that every client is different and not everyone may be prepared to answer your questions. It’s important that you don’t bombard your client with questions. Set an appropriate time with them if it’s going to be a call or online messaging and do note what the discussion will be all about.

This talk or discussion does not have to be very formal. It can be a bit casual but still remain professional. If your client does not have time to chat, just send an email. And do tell them the importance of the questions you need to ask as these will benefit the project—you need these questions answered so you can get started working after all.

Conclusion

Make sure to refine the questions to ask a freelance client according to your industry or project. It may seem awkward at first as it feels like you are interviewing your client but this will really help you in the long run. Instead of bothering your client every so often about project details, you already have pretty much all the information you need to submit your deliverables.

That is the key to picking questions to ask a freelance client. You need to be asking questions that will make your work easier, have all the details so you can minimize the number of times you need to contact your client.

Get Organized & Win More Clients

Kosmo has everything you need to run your freelancing business.

Post written by:

kosmo on November 11, 2022

Kosmo is a free All-In-One Workspace for Freelancers.

Learn More

How to Keep Track of Freelance Work Effectively

Productivity Task Management

Are you having a hard time on how to keep track of freelance work? Don’t worry, you are not alone. As a freelancer, one of the things that you have to get used to is you don’t have anyone managing you. And of course, this is one of the perks of freelancing. No one will be breathing down your neck, micromanaging you, or checking on your progress.

However, here comes the drawback. Since no one is managing you, you must be your own manager. That’s right, you will be responsible for keeping track of your freelance work. No one else will do it for you. Maybe now you are wondering, why do I even have to learn how to keep track of freelance work? This is actually very important as it can help you grow as a freelancer and improve your business. In fact, it’s a must to keep track of freelance work.

Tips on How to Keep Track of Freelance Work

At first, it may seem overwhelming to manage yourself and your work. But it will only seem that way because you haven’t done it before. Much like everything else, things get easier if you practice or keep repeating something. Think of keeping track of your freelance work as a daily exercise that soon will seem like second nature to you.

1. Make a Habit of Keeping Tabs on Your Work

Every time you have an assignment, a task, a new client, or anything related to your freelancing work, you need to write this down. Do not cherry-pick what you will include on your list of things to do or things to accomplish. No matter how big or small it may be, you need to document these.

This is the very first step on how to keep track of freelance work, start by listing everything down. Once you have mastered documenting everything that goes on in your workday, it’s time to make sense of them and organize these things.

You need to learn how to “file” away these documentations. Make a list of your tasks, things that you have already done, client reports, project accomplishments, etc.

2. Create a System

Everyone has their own way on how to do things effectively. The same goes for keeping track of work. It is up to you how to do this system. For example, if you are assigned a task, do you write this down right away? Or do you find this cutting your workflow? Some people prefer to input their tasks as they go while others prefer a system where they make a to-do list before the workday starts. The system is then followed up with an end-of-day update.

Once you create the right system for you, it will be easier to keep track of your freelancing work. It’s best if you have a regular update, whether it be daily, weekly, or monthly—it’s up to you.

3. Follow a Work Schedule

Having a work schedule can definitely make it easier to keep track of freelance work. You don’t have to do fixed hours but you really should have a time set for when you are in “work” mode. If you need some help with these you can try time or work techniques, such as Pomodoro or time blocking. Again, you need to figure out which work schedule will best suit you. During this work schedule, make sure to include an allotted time for keeping track of your freelance work.

4. Use Freelancing Tools

You don’t have to do everything on your own these days. Freelancers of today are very lucky as there are now tools that are specifically made for freelancing. Make your life easier by utilizing the freelancing software Kosmo. It has excellent tools that can help you streamline your freelancing work:

• Clients and Projects

Never have to worry about juggling multiple clients and projects. Kosmo allows you to list your clients and projects so you can easily keep track of your freelance work. It also has a tool for invoicing wherein the invoice will be sent directly to your client and they will be linked to your payment option.

• Tasks

Use the task list tool where you can input the things you need to do. It has awesome features as the task list can be recurring. For example, if you have a client that requires a blog post from you on a monthly basis you can input on the “add task” an option for recurring assignments. From that list, you can then click the “start” button to start your time tracker.

• Time Tracker

Sometimes, you can list down all of your tasks and do them but fail to “acknowledge” that they are already finished. This is where Kosmo’s Time Tracker comes in handy. You will see a list wherein all of the things you have done for a project are shown along with the time & date of accomplishment.

For even more convenience, the time tracker list shows how much you will earn from the project and if it has already been paid off by the client. You can easily track if you have forgotten to bill your client or if you are still awaiting payment.

Importance of Keeping Track of Freelance Work

Maybe you aren’t set yet on learning how to keep track of freelance work. But you really need to do it, below are 3 of the main reasons why you need to learn and do this:

1. For your business

First of all, being a freelancer is technically running a business. You need to keep track of how much work you are doing and how you are earning to find out if what you are doing is profitable. If you don’t do the math, you might find out too late that you are working and not actually earning anything. Remember that you also have bills to pay, like the coffee you buy to help you work or the electric bills for your laptop.

How to keep track of freelance work will be the way for you to keep your business afloat. It will help you choose your clients wisely and find out which projects are worth it and which are something you need to say no to.

2. For your clients

Just imagine you have a client who keeps asking you about your progress on your projects. Maybe they want to know when you will be able to submit a deliverable or they need an estimate for your deadline if they add another task for you. If you keep track of your freelance work, you will have no trouble answering clients’ questions.

It can be annoying for clients when freelancers answer with vague statements. Just imagine if you ask your client when they can pay you and they answer maybe next week. The same goes if they ask you when can you finish a project and you answer maybe tomorrow. You need to set clear expectations for pricing and due dates, which is easier when you keep track of your freelance schedule.

3. For your progress

How will you ever find out if you are growing? As a freelancer, there really isn’t a corporate ladder to climb. But it is important that you keep growing as a freelancer, so how do you do this? When you keep track of your freelance work, you’ll be able to see how much you have accomplished.

If you find that you are able to work twice as fast, maybe it’s time to get new and extra projects. It can also indicate you have room for another client or you can start charging higher as your skills are improving, too.

Need a Bit of Freelance Work Tracking Help?

Woman sitting on the floor using a laptop surrounded by boxes

Don’t be too hard on yourself if you find it hard to keep to your freelancing work tracking system. Sometimes, you need a bit of inspiration to help you out—yes! even when it comes to organizing your freelance work.

• Follow Productivity Blogs

Social media is the way to go when you need some inspiration. Yes, there are now productivity blogs that show you how people “arrange” their lives. There are also freelancers who have blogs that show how they keep track of their business. This can be anything from bullet journaling to proper alarms and reminders setting. When you see these productivity blogs, they can help you jumpstart your own productivity.

Get inspired and try out the things on the blogs you view. This is the way to find out what works for you. Trial and error can be taxing but it is also a lot of fun. And nothing feels better than finally finding one that actually works for you to help you keep track of freelance work effectively.

• Ask Fellow Freelancers

If you know other people who are freelancers, ask them what works for them. Sometimes seeing someone be successful allows you to envision yourself doing the same. Have a friend who is a freelancer walk you through their method and you may also figure out that you want to alter things to go smoother.

• Get Help From the Freelancing Community

Maybe you don’t have any friends who are freelancers or you are just new in the game. That’s okay because the freelancing community is big and it’s getting bigger over time. The good thing is the freelancing community is pretty friendly. You’ll be able to find and join Slack communities where they share how to keep track of freelance work and offer advice to help you become successful.

Conclusion

How to keep track of freelance work is a very important thing to learn as a freelancer. It can help you not just survive in this business but actually thrive. Use this tracking to help you improve and grow. At first, keeping track of your work can be daunting if you are not used to it. But if you keep at it, it will become as natural as using a QWERTY keyboard on your phone. And again, don’t forget to utilize software or tools so keeping track of freelance work is easier.

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Post written by:

kosmo on November 10, 2022

Kosmo is a free All-In-One Workspace for Freelancers.

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Tax ID Number for Freelancers – Do I Need One and Where to Get It

Finance Tax

Many wonder if a tax ID number for freelancers is a must. As self-employed individuals free from employer relationships, freelancers often question whether this is a requirement. While the obvious answer is YES, some freelancers tend to skip this process for several reasons. Others believe that their business is too small and personal, while others simply do not want to take time and go through the process. They think that filling out forms and spending time in long lines are too tedious.

As a freelancer, you have to understand that YOU ARE A BUSINESS. The mere fact that you are providing services or offering products for a fee categorizes you—even if you are a single entity, as a business. Your freelance business has an impact on the economy, no matter how small it is. And because of that, you have an obligation to your state or country. So yes, freelancers need a taxpayer’s identification number.

Getting a tax identification number should not be confused with securing a business license. As a freelancer, there are several factors to consider on whether you need a business license or not. But when it comes to a tax ID number, almost all states and countries require these from citizens and residents.

What is a Tax ID Number?

US tax forms on table crowded with a pencil, phone, and 20 dollar note

A tax ID number is a series of unique digits assigned to a taxpayer. The assigning body is a dedicated agency from the state or country of residence if you are an individual or the assigning body from where you operate your business. A tax ID is issued to individuals and all types of businesses for tax collection and administration purposes. Basically, if you are earning, you must secure a tax ID number.

In some countries, there are different types of tax ID numbers. In the United States, for example, the Internal Revenue Service (IRS) and the Social Security Administration (SSA) assign different types of tax ID numbers like the Social Security Number, Employer Identification Number, and Individual Taxpayer Identification Number, among others. These numbers are assigned for different types of entities, reasons, and purposes.

The tax ID number also makes it easy to identify an individual or business, as no two tax ID numbers are alike.

Importance of Tax ID Number for Freelancers

The primary use of a tax ID number (TIN) is for filing income tax returns. Tax ID numbers help countries track citizens’ income and other tax compliance through their internal revenue affairs department. Tax ID numbers are a good way to check a person’s credibility or a business’ legitimacy since compliance is reflected through these numbers. Your records will show that you are in good standing with the tax laws of the country you are working in, which also means that you are a competent business.

Some countries also require a tax ID number when opening bank accounts and credit lines. Or when applying for a job or buying and renting properties. Many countries also use tax ID numbers when providing government benefits and services.

So think about it, as a freelancer, if you have a tax ID number (and pay your taxes correctly and promptly), there are a lot of benefits.

Benefits to Freelancers:

social security printed on paper with typewriter

Confirms Legitimacy. Some clients are a little too vigilant when it comes to hiring freelancers. A tax ID number confirms that you are a registered taxpayer, and that makes a client more confident in hiring you. It shows you are a real and serious freelancer providing authentic and legitimate service or product.
Matches Compliance with Client. In some cases, clients require freelancers to have tax ID numbers in order to file necessary taxes associated with hiring them. So, it is definitely a smart move to come into the freelance world prepared and ready by having a tax ID number.
Government Benefits. Most countries provide medical benefits, insurance, and financial aid to compliant taxpayers. You also get to enjoy social security benefits along with your declared dependent.
Identity. Tax ID numbers are unique. It serves as an extension of your personal and business identification. So, when it comes to tax season, you can easily file and refer to your records using your TIN.
Future-Proofing. It will be advantageous if you have secured a tax ID number since the beginning of your freelance career. When you decide to expand your business or shift to a different business structure, it will be easier since you already have records with the internal revenue agency.
Taxes. As a freelancer, you should not neglect your legal obligations. Being able to pay the proper taxes will not only save you from penalties from the government but also prove that you are handling a good and stable business. Keep in mind that in almost all countries, as long as you are receiving income, you are obliged to file your tax returns. Plus, there are some tax-related documents in your country that might need a tax ID number.

Getting a Tax ID Number

eyeglasses and coffee cup on table with hands using a laptop and smart phone

Thanks to the IT geniuses of this generation, getting a tax ID number now is easy. Tax collection and administration agencies of each country have made it more convenient to get tax ID numbers. For instance, in the U.S., the IRS has already included links for forms and guidelines on its website. So you now have to simply fill out online forms.

Keep in mind that documentary requirements are needed for different types of tax ID numbers, along with a completely filled-out form. Universally required documents include those that prove your identity and business issued by an authorized body.

Since tax ID numbers are unique, keep in mind that when you decide to change your business structure, say from a sole proprietorship to a partnership, you will need to get a new TIN.

To be extra safe, visit the internal revenue agency of the country of your residence or business location. Check out relevant websites too, like the U.S. Small Business Administration, for advice and tips.

Conclusion

close up of a printed tax prep checklist

Aside from the benefits, you will get from the government for having a tax identification number—and of course, paying the proper taxes, you must give emphasis on how this can help you with your freelance business.

Tax identification numbers are required for those who are earning either through self-employment or traditional employment. In conclusion, the tax ID number for freelancers is a must.

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Post written by:

kosmo on November 9, 2022

Kosmo is a free All-In-One Workspace for Freelancers.

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How to Ask My Client for Another Task Politely

Client Management Growth

Do you need an answer to the question, “how to ask my client for another task politely?” Maybe you’ve finished up all of your deliverables and you are bored? Maybe you need some extra cash? Or maybe, you just want to show your client that you have what it takes to do more.

Whatever the reason may be, asking for more responsibilities from a client takes a particular type of approach. It can backfire if you do it the wrong way, even if your intentions are good. Asking for another task can be as tricky, if not trickier, than asking a client how to extend a project deadline. Not to worry, below are some things that can help you on ‘how to ask my client another task’.

Considerations for Getting New Tasks from Clients

There really is no one way to ‘how to ask my client for another task’ as this will depend on several factors. To help you get a grasp on the things you need to consider, check out the questions below:

1. How long have you been working with your client?

For any type of work environment, building trust is a must. The same goes for freelancers and clients, you need to establish a good working relationship and this really takes time. The point here is if you have only been working for a few days or weeks with a client, chances are they might not be up to giving you another task right away.

You need to prove yourself first before a client may start trusting you and then offer you tasks upon request. There are of course a few tips that can help you out when asking for new tasks that you can try. Check them out in the next section of this article.

2. What is your working relationship like?

Your relationship with your client can easily change the way ‘how to ask my client for another task’. If you know this person before you did freelance work for them, then you can try to bring it up in a friendlier and informal way. It can be as easy as dropping a message on Slack saying, “Do you have another task that I can do for you?”

However, if this client of yours is someone you don’t really know, which is the case for most freelancers, then you will need to be a bit more formal when composing your email. It has to be more like a pitch as opposed to just a simple message asking for a task.

3. What kind of task do you want to request?

You need to consider the type of task that you will be requesting, is it simply the same as your previous task? For example, if you are a writer and you just want more articles to make, then it’s all about the volume. This can be easier to request as your client already knows the way you work.

It gets trickier if the task you want to request is something you haven’t done for your client before. So, again, for example, if you are a writer who creates articles, maybe you want to branch out and do an ad copy or a social media caption, you have to be more careful when asking. Make sure to provide relevant details so that your client will understand why you want a task that is different from your usual.

4. Do you have a contract?

If you have a contract with your client, see if there is anything on it that mentions asking for another task if you are already done with your deliverables. In the future, you can add this to your contract so there would be no awkwardness when requesting extra tasks.

How to Ask My Client for Another Task – Tips & Tricks

Once you have answered the questions above, you probably have a better grasp on how to ask a client for extra tasks politely. To further help you with this, below are some tips and tricks that you may use:

• Be direct and clear

Aside from the usual salutations and thanks at the end, make sure your message or email is straight to the point. From the get-go, your client should instantly understand what it is that you want. Then just add supporting details in the middle or the end of your message. Make the first statement about getting another task and not an intro about your work ethic.

• Don’t call

Man in a suit on the phone, using a laptop

There’s a reason why millennials hate phone calls and with good reason. Calls can cause disruption and your client will not appreciate receiving a call asking for a sort-of favor. Besides, you won’t be able to lay out your “pitch” if you do it through a call. You don’t want your client, or any person for that matter, to be in a bad mood, especially if you are asking for something.

• Lay out important details

To make a successful pitch, which is technically what you are doing when asking for another task, you need to complete all of the details. Your client should understand that you want a new task and include the following important information:

Additional task
Price or rate of doing the additional task
Deadline
(optional) Incentive

To help you out with such details, Kosmo, a freelancing software is the right tool for you. This site can show you the list of tasks that you do for your clients and also the rate (even the time it takes for you to accomplish specific tasks). With Kosmo, you can easily determine your deadlines so you don’t end up overpromising to your clients. You can also figure out if you can make discounts for your services.

• Don’t put it on a thread

If there is anything you don’t want to do is to make “how to ask my client for another task” seem like an afterthought. For example, if you have just sent a message to your client that you have already completed a task and then you continue on the thread, “BTW, do you have other tasks I can do?” is a no-no.

Asking for an extra or new task deserves a fresh email or message. When you do create this message, it should only pertain to that so your client clearly understands. and there is no room for overlapping information.

• Brush up on email and message etiquette

Laptop with screen showing Gmail loading

One of the difficulties of electronic messages is things can very much get lost in translation. Even talking to someone face to face there are miscommunications already, what more than an email with just words and no facial expressions (emojis don’t count) and voice tone to match?

Try to brush up on etiquette for emails and messaging to help you out. There are some messages that may be perceived as rude or impolite and you might not even know it. Do work on this soft skill to help you be more polite online.

Conclusion

“How to ask my client for another task” may seem fairly difficult at first, especially if you don’t know exactly what you are doing. But, when armed with the right tools and instructions, it should be fairly easy to get what you want.

Just remember that every client is different and you also need to consider the type of work person they are. Don’t feel too bad if they can’t give you another task right away. Just the fact that you asked may leave a lasting impression on your client that you are a go-getter, a freelancer that they may count on in the future.

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Post written by:

kosmo on November 8, 2022

Kosmo is a free All-In-One Workspace for Freelancers.

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How Long Should a Demo Reel Be to Keep Viewers’ Attention

Growth Proposals

Creating videos or demo reels to promote your profession or business is a good strategy. But how long should a demo reel be to keep the viewers engaged? At which point will your target market start to lose interest?

As a freelancer, you must have an excellent marketing strategy. That means selling your product or services in whatever way and means. And it has to be creative and unique for it to stand out. Remember, the freelance industry is booming. There are hundreds, if not thousands, of competitors out there.

Demonstrating your product or service through videos is one good marketing tactic. It is creative, fun, and appeals to everybody. Plus, there are hundreds of easy video editing apps available to use! But wait, hold on. Don’t rush it because, like any other marketing plan, there is a good and bad ways of executing this. Read on to understand how demo reels contribute to your business and how to do it—the smart way.

What is a Demo Reel?

A demo reel is a video composed of a compilation of several shorter clips created to promote one’s product, talent, or service. Those involved in the performing arts, such as actors, singers, directors, or cinematographers, often use demo reels to present their talent. And now, with the strong influence of social media on consumers, demo reels are also published to showcase products. Freelancers belonging to other industries are also being creative by making demo reels of their services.

Demo reels serve as your product’s teaser. A short advertisement showcasing the best features of your product. If you are offering services or belong to the creative industry, your reel serves as your portfolio.

Tips for Creating Stand-Out Demo Reels

The purpose of a demo reel is simple: to get your potential client to engage. They may not buy or hire you right away, but the reel should make them intrigued enough to know more. Your demo reel must make them curious about your product; spark interest. Or be excited about your projects. It should make your viewer want to know more about you. So, here are a few tips that can guide you when you create a demo reel:

Keep it short and stunning. As a rule of thumb, demo reels should be short. But that doesn’t mean it has to be plain and effortless. Short videos can be stunning. Challenge yourself to create a video that can capture your potential client’s interest in the shortest amount of time.
Showcase your best works. Just like in creating a regular portfolio, you do not need to put in all your work. Instead, choose the best ones, the ones that will stand out. Remember, you only have a limited time, so make the most out of it.
Own it (do not feature other people’s works). Some freelancers make the mistake of including other people’s work, like from a collaboration or partnership. It would be best if you could avoid this. This is your time to shine. The floor is yours and yours only!
Pick the right music (consider copyright). The music sets the mood and pace of the video. Pick the genre that best suits your personality and your business’ identity. Do not forget that some music or audio effects are licensed and copyrighted. Be careful about this.
Match clips with the beat of the music. Nothing is more annoying than an unsynced video. Make sure that when editing your clips, the rhythm of the music matches the transitions.
Don’t forget to add your contacts and links. Remember that your demo reel is also your portfolio. So, make sure that you brand it. If you have a logo, add your logo. Your contacts and links are an important inclusion so that interested clients can contact you right away.
Familiarize yourself with aspect ratios. If you are creating a reel intended for multiple platform use, make sure that you know the correct aspect ratios of these platforms for a smooth and seamless video.
Know your video file formats. Make sure to use universally accepted file formats. For example, if you sent an audition demo reel and it did not automatically play for your agent, you will probably not get the part. Remember, your customer or client will not make an effort to download an app just so they can watch your demo reel.

How Long Should a Demo Reel Be?

stopwatches, a computer keyboard and a laptop

Do you ever find yourself checking out the running time of a clip before clicking on it? Most people do. And if they see that it is a long video, say, three minutes and more, chances are they are not going to watch it and just keep on scrolling.

Or, once a video ad pops out from your screen, do you hover to see how long the video is?

Research shows that the human attention span is continuously decreasing. This is an important element to take into account when planning for a demo reel. An ideal reel is about two minutes long. But you have to keep in mind, and really take note of this: that no matter how short or long your video is, the first thirty seconds is actually the most crucial part. This means you have to make your reel’s first thirty seconds engaging and jaw-dropping to keep viewers from scrolling up.

There are several factors to consider when deciding how long should a demo reel be. You must consider the purpose of your reel and the platform to which it will be published.

For instance, if you are creating a demo reel that will serve as your audition tape for an acting job or want to start a voice acting gig, then you may go a little over two minutes. Think of stitching around four forty-second clips showcasing your different types of acting or singing skill.

If you are making a demo reel to promote a product or service, then try to limit the length to one minute. Think of the TV ads that are shown. These are typically just thirty-seconder videos, yet the message was clearly delivered. A thoroughly laid out demo reel can also be this effective.

The platform to which you will publish your demo reel also matters. Audition reels are usually sent via email or a USB. If this is the case, then it is okay to have a reel longer than two minutes. The same goes if you will be posting it on your website.

If you will be posting a demo reel through social media platforms or job boards, then you should shorten your video to make sure that the site accepts your file. In this situation, make sure that your video content is still stunning despite having a limited length of time.

Conclusion

What this technology-driven world gives you is an opportunity to sell better, and faster. Especially now that there are a lot of free and easy-to-use video editing tools. Some even have a simple drag-and-drop feature. You do not need to hire a professional video editor anymore.

Demo reels are excellent selling tools. In this digital age, most people are more inclined to watch videos than read promotional materials. Everybody tends to be appreciating visual communication more. So, creating your own demo reel, either for your product or service, is definitely a good move.

Having the right strategy for creating your demo reel is a bonus. You do not just make a video of yourself and discuss your product. Let the tips guide you. And now that you know how long should a demo reel be, you can create your own stunning video!

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Post written by:

kosmo on November 7, 2022

Kosmo is a free All-In-One Workspace for Freelancers.

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Should I Start an LLC as a Freelancer – Business 101

Legal Protection

Do you want to know the answer to the question, “Should I start an LLC as a freelancer?” then read on. Although you can run a freelance business effectively even without an LLC, there may come a point in your freelancing journey where you may need to establish one.

But first, you may be wondering what is an LLC anyway? A Limited Liability Company or LLC is a business structure that separates your personal assets from that of your business. This can be very beneficial, depending on your current situation as a freelancer. To help you answer the question, “Should I start an LLC as a freelancer?” there are some factors that you need to consider.

Considerations for Starting an LLC as a Freelancer

Before you start filling up forms, you may want to put the brakes on starting your LLC right away. There are many things you need to think about before you create your own company. Check them out below to help you out:

Long-Term Plans

Top shot of woman holding a pen and sitting in front of desk with computer and notebook.

There comes a point where it makes sense to create an LLC because it is beneficial for your income. If you are just starting out on your freelancer journey, it might not make sense to create one right away. However, if you do have big plans in your future, maybe you want to expand your one-person business, it’s okay to plan ahead.

Answering the question, should I start an LLC as a freelancer, becomes a no-brainer if you have taken the time to make projections for your future. If you want to someday earn thousands per month, it may help to have an LLC so that your taxes wouldn’t be as big and you can also get possible tax deductions for your operations.

Personal Assets

Do you have personal assets that you need to protect? Maybe you have family properties or land titles that have your name on it? If you do have such assets, you will need to protect these. And one of the best ways to get protection for your personal assets is to get an LLC.

This way, if your freelancing business takes a dip or if you have a client that may have not worked out great, there is no way your personal assets are on the line. They can only come after your business.

Residence or Citizenship

Depending on where you live or what your citizenship is, you may want to look into getting an LLC. There are several countries that allow starting an LLC even if you are a non-resident. Just make sure to check that you will be able to reap the benefits of said LLC. If you do decide to start an LLC, check out the best countries or best states to form one to help you out.

Nature of Freelancing Work

If “Should I start an LLC as a freelancer” keeps popping up in your head, it may have to do with the industry you are in. Are other freelancers in your line of work starting their own LLC? If they are, you might need to look into why.

There may be some clients who actually prefer dealing with an LLC as opposed to a freelancer. If you think you will have better chances of getting clients and booking gigs as an LLC, then this may be the right path for you.

Preparations for Starting an LLC

Now, this is not an in-depth discussion on all the requirements you will need for starting an LLC but you must at least have a bit of an idea of what you are going up against.

Paperwork

Person opening a file folder envelope with several compartments and documents

If you are having trouble keeping up with admin work as a freelancer, bad news, you’ll be getting even more paperwork if you start an LLC. However, there are agencies out there that can actually help you if you do decide to start an LLC. However, if you find that you have no patience for filling up forms, the answer to should I start an LLC as a freelancer should be an instant no.

You need to make preparations for making your own company, especially if you will start an LLC that is not in your home country or your country of residence.

Fees

Starting an LLC is not just about forms, you also need to pay fees. Now, the fee will depend on a number of things. For example, in the US, filing your LLC fee will depend on the state where you will start your company. You also need to consider other fees that may be related to starting an LLC. This can include opening a bank account for your company because you definitely can’t use your personal bank account.

Add to that, you may need to get a visa if you are a non-resident starting an LLC. It’s also important to have a tax identification number or TIN. Starting an LLC on your own can be very tricky and hard to navigate, so you might end up getting a professional to do it for you, so do add that to your list of fees.

Conclusion: So, Should I start an LLC as a freelancer?

Man wearing glasses sitting down, smiling at laptop

When you take things into consideration, you should be able to answer the question should I start an LLC as a freelancer on your own. Each freelancer is on their own journey and starting an LLC may be beneficial for some while for others it’s more work but very tiny rewards.

The answer here is definitely up to you. Just make sure to consider all of the factors discussed above, from what you can gain out of starting an LLC and also if you have the capacity for registering your own company.

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Post written by:

kosmo on November 6, 2022

Kosmo is a free All-In-One Workspace for Freelancers.

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How to Do Due Diligence as a Freelancer

Legal Protection

Deciding to be a freelance due diligence specialist is a big step. Whether you quit your day job or are starting fresh, you have to keep in mind that this is a serious profession. If you will take a look at online job markets, you will see that due diligence specialists are not as many as freelancers who belong in the creative fields. This is mainly because due diligence consulting is highly technical and requires specific skills, training, and experience. This may be a good opportunity for you to start your own due diligence consulting business. And to prepare you for the freelancing world, here’s an overview of how to do due diligence as a freelancer or an independent contractor.

Understanding Due Diligence

Due diligence is a systematic investigation, analysis, or audit of a specific category, done before a business enters into a contract or investment. Due diligence consulting is done to evaluate the project owner’s business capabilities and overall standing vis-s-vis the potential partner’s business footing. This is typically conducted before mergers and acquisitions.

There are different types of due diligence projects, based on approach and context.

Types of Due Diligence

Based on the approach:

Hard Due Diligence. Factual data and numbers are the main players in hard due diligence. The evaluation involves a lot of data gathering, from financial statements to cash flows. Consultants aim to get the company’s financial standing and stability to get a grasp on how capable and ready it is for changes. In this approach, the business model, existing deals and contracts, and strategies are also assessed to determine the sustainability of the company.
Soft Due Diligence. Soft diligence is anchored in management style and the people. This covers leadership quality, employee culture, and customer base loyalty. A consultant looks into the company’s corporate culture, especially on relationships between management and employees. It analyzes systems involving human capital and not financial capital.

Based on context:

Financial Due Diligence. Financial due diligence involves auditing financial data, statements, and books. In addition, a due diligence specialist analyzes assets and liabilities, capital funding and cash flow, profit margins, and debt management.
Legal Due Diligence. Legal due diligence is concerned with compliance checks. This may involve deals and contract reviews, regulatory compliance, and even intellectual property rights security.
Commercial Due Diligence. Commercial due diligence is about the study of the market. It deep dives into marketing strategies, research and development, customer relations, and sales pipeline. It also includes an assessment of competitiveness, market share analysis, and mapping out growth opportunities.
Operational Due Diligence. In doing operational due diligence, a consultant reviews and studies how a business turns its plans into actions, and how these actions translate to profit. Basically, the operations of a business are examined to see how fit and adaptable it is for change and growth.

Being a Freelance Due Diligence Specialist

The perks and benefits of being a freelancer are too appealing to miss out on, right? So, if you have decided to be a freelance due diligence consultant or specialist, here are a few guides to help you start right.

Specialize in a Due Diligence Category

While it may be beneficial if you can conduct consulting services for any type of due diligence project, it will be best if you have a specialization. As you focus on this specialization, you will continue to perfect your skills. Having a specialization will become a brand in your name, and businesses looking for consultants will consider hiring you more than others.

Continuous Learning

Experience may be the best teacher, but being updated and relevant is essential too. Due diligence methodologies evolve, especially with the rapid development of technology, allowing streamlined collaboration workflows between clients and freelancers. You must keep up. You can also take due diligence certification courses to enhance your knowledge and skills.

Skills, Skills, Skills

Aside from your technical knowledge of conducting due diligence, you should also have the necessary skills to deliver a good project outcome. Skills like attention to detail, team management and collaboration, communication, and organizational skills are equally important. Writing and reporting skills are essential too.

Remember, you will be bombarded with tons of important documents when doing your job. These may be years’ worth of company files, so you need good time management skills and patience. If you are working with customer analysis, you have to be professional at all times.

Have an Efficient Workflow

Plan and design a workable and productive workflow for you. This includes creating a good step-by-step workflow per phase of your project. For example, during the initial phase, you need to have a scope of work template to clarify what your client wants and expects from you. Through the workflow, you can see how long a project will take; therefore, you can decide if taking multiple clients will work for you. Have a process, and stick to it if it works wonders. But do not hesitate to modify if you see a weak link in your system.

Understanding Team Dynamics

office team high five with laptops and files on table

In most cases, you will not be working alone. Companies will require you to work with accountants, HR, marketing heads, and lawyers. Understand that collaborating and working with these people will complete the project faster. You may be a freelancer, but you should know how to work with a team as well. After all, they know the company more than you do, so you might be able to get a more inside look from them. Your evaluation will be more holistic, knowing that besides what’s written in the papers, you got to see the bigger picture through the employees themselves.

Develop Your Own Program

Nothing impresses a client more than seeing that you have your own systems in place. You can also customize the program according to the demands of your clients. Keep in mind that the results of the project you deliver will have a significant impact on the company. So it is only right that you tailor-fit your program according to what the company requires. In any due diligence project, there are basic stages or phases that you must be included in your program:

Determine the goals of the company
Data gathering
Assessment and review of documents & processes
Reporting & recommending actions

Setting up Office

Now that you have your own business, it must be fully operational. It means setting up your office. No, not the physical workspace, but running it. Since some of your clients might not be comfortable with you bringing home their official documents, expect that you will be working in their building. So it is wise that you have your own laptop to work with. Know the software that you will need. Explore business management tools and see which best suits you. Think of it like this: you are the office. So make sure you have everything you need to do your work efficiently.

Due Diligence in Your Own Busines

hand writing on paper with notebook and coffee on table

Of course, as a freelancer, you should not forget to protect your own business. Doing your own due diligence is the smart thing to do. And as simple as how you would do it for a client, conduct it in your own business.

Know your financial footing.
Review your systems (workflows, marketing strategy, contracts, billing & payments).
Assess your qualifications and readiness.
Have a way to screen potential fake clients.
Compliance (permits, licenses, and taxes)

Conclusion

The economy has truly opened up a lot of opportunities for almost all fields of work to shift to freelancing. Big and small companies find hiring freelancers more convenient than employing regular staff. The demand for consulting jobs for professionals like due diligence specialists is increasing.

With luck on your side, your skills and knowledge in due diligence are highly sought-after. Maximize this opportunity and become an excellent freelance due diligence specialist. It is truly worth it.

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Post written by:

kosmo on November 5, 2022

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