Freelancers come in all different shapes and sizes. From technical types, to graphic designers, copywriters, or even those who act as virtual assistants; freelancers can (at least from the outside looking in), appear to have little in common. However no matter what specialization a given freelancer undertakes, all freelancers share one very important characteristic. They have to manage their businesses and financials effectively on a regular basis.
Below I’ve provided 7 key reasons why more and more freelancers are moving their financials to cloud accounting packages. From the progressive nature of the nimble freelance business model, to the nature of the average freelance client, you’ll see why more and more freelancers are finding they’re the ideal candidate for a cloud accounting package, and how many are reaping the benefits in their daily routine.
1. Freelancers have to be progressive to survive
Freelancers are often bootstrapped, sole traders whose primary goal is to optimize their available time to work on client projects (i.e. paying work). With this in mind, freelance professionals are constantly looking to find solutions that enable them to spend more time completing freelance jobs, and less time spent on administrative tasks. Because a culture of progressive business management has evolved in the freelance industry, this has meant that many freelancers are trying out innovative services such as cloud-based accounting to find an edge in their business.Unlike large-scale business, freelancers can try new things out with relative ease. Hence moving to services that both optimize efficiency and keep costs down is a major driving force for any freelancer right now.
2. Freelancers are constantly mobile
Because freelancers can find themselves working anywhere from a coworking space, to consulting in an office, working in a coffee shop, or even from the comfort of their couch at home, being able to access and manage financials on-the-go is of huge benefit to the average freelancer. By being able to simply login to manage their financials via the web, on a tablet, or check billing details with a client or subcontractor on the spot, freelancers are seeing major benefits by having their financials with them 24/7; no matter where they are.
3. Automation is a freelancer’s best friend
Freelancers are constantly handling an array of tasks from client work, to marketing, to networking; therefore automation of important business process management items such as invoicing and payment reminders is one-less thing a busy freelancer needs to be worrying about. Freelancing is a constant juggling act, therefore any system which can help to limit the number of items a freelancer needs to be on top of at any one time, is a major benefit.
4. Time tracking
One of the most challenging aspects to freelancing is ensuring that you’re not spending too much time on a freelance job without seeing a return. Freelancers need to know right down to the minute how much time their spending on a particular task, so they can ensure they’re getting paid fairly for their services, and can determine whether or not they would be better off subcontracting another freelancer in to help out on a job if they’re getting overloaded.
Because time tracking and financials go hand-in-hand, having access to a system which can both calculate and record time simultaneously is of tremendous benefit. This service is becoming more and more common in cloud accounting packages, and you guessed it, is a major reason why freelancers are flocking to cloud accounting packages over traditional packages to seamlessly integrate the two business facets.
5. Access to online payments
Because freelancers can’t necessarily wait to the end of a 14-day or even a 30-day payment period to get paid, by providing clients with access to an array of online payment methods such as PayPal, credit card, and others, freelancers are increasing the likelihood of early payment. Not only this, but payment via services such as this can be directly integrated into your cloud accounting package making management of financials a breeze. With less follow-up time required, and less processing of incoming payments required, these two elements also are major plusses for busy freelancers who are looking to develop a thriving business.
6. Secure backups
One of the key benefits for small businesses using cloud-based infrastructure is that your provider backs up your services. Similar to how your web hosting or email might be backed up, cloud accounting packages are generally backed up in multiple locations, and have redundancy measures in place so that if for some reason your data is not available on one server temporarily, it will be available on another. Now apart from a global Armageddon occurring, this really is a pretty safe bet for your small business. Not only this, but again its one less thing you have to worry about, and in my view a very important one.
7. Invoicing made easy
I don’t know about you, but invoicing clients for work completed has always been something I never looked forward to. Not because I don’t enjoy getting paid, but because I would prefer to focus on marketing activities, working on freelance jobs, or developing my business. Because most cloud accounting packages automate this process, and manage a great deal of related items, this is a huge plus for those of us who just want to get on with the job, and not be pushing paper. Although invoicing is one of the most important aspects to managing a freelance business effectively, all this can be managed with a great deal more ease in a cloud-based environment, and can be closely monitored throughout the payment life cycle.
Summary
One of the central reasons why freelancers decide to leave their 9 to 5 jobs is because they want to become their own bosses, but that doesn’t mean they want to be drowning in paper work as part of that process. Freelancers generally have an entrepreneurial type nature, and are constantly looking to find new ways to grow their businesses so that they can not only continue to focus on their area of expertise, but really achieve something in their careers. This is why freelancers are flocking to cloud accounting packages because of the wide-ranging number of benefits easily accessible to them. From grass-root issues such as price competitiveness, to mobility, and a great deal of workflow automation, it’s clear to see the benefits of cloud accounting for the average freelance professional.
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