Financial Services For Freelancers And Contractors

One inevitable reality about freelancing and contracting jobs is that you have to face two important seasons – feasting and famine periods. While the feasting period means you have more jobs to do and make more money, the famine period is a season when there’s little or nothing to do.

Financial Services For Freelancers And Contractors

That’s why, as a contractor or freelancer, it’s important you leverage money management and financial tips provided by most qualified Fintech services providers such as Swissmoney to manage your income during feasting periods and prepare for the famine season.

In this article, we will dive into your income reality as a freelancer or contractor and how you can plan your finances in the freelancing or contracting world.

Your Income Reality in the Contracting and Freelancing World

Even if you already know how to knack contracts or willing clients over to your side because of your expertise and rich portfolio, there are some moments when the leads stop, your phone stops ringing, or no new email or no one cares to go through your portfolio.

If you are like some freelancers or contractors, you may start to feel a little crazy if you are cut in contract work. But as you proceed into the journey, you start knowing why it is important for you to understand income flows and ebbs.

As a freelancer or contractor, there are times you think you have done everything right from the marketing perspective, and yet, the revenue is nothing to write home about. Just as suddenly, though, money started flowing in.

However, This unstable income is why many people believe the system is not meant for them and would rather become an employee to maintain a constant flow of income.

However, if you are the type that loves the terrain so well and would love to maintain your status as an independent contractor, learning about income ebbs and flows doesn’t require much.

You just need to understand how to plan your finances, separate your personal and business expenses, and call for a financial advisor’s service if needed.

How To Plan for Your Finances In The Freelancing Or Contracting World

When it comes to planning for your finances as a contractor, you might have to consider a lot of things or get many tools available. Getting paid for your job is different from earning a salary.

Hence, you need to make a lot of adjustments. For instance, you may be required to pay taxes on your “net before-tax revenue.” It means you have to subtract your cost of business from the profit you make.

Therefore, tracking your expenses is essential for your business because you don’t want to operate at a loss and the profit net is the ‘salary’ you pay yourself after you are done with the job and being paid.

How do you go about this?

Draft a budget

Everything works by proper planning. You know your business is not the type that brings money every time, so you may have to create a budget for spending money when you have it against when you will not have it.

Considering your job, you shouldn’t be like other people who fly by the seat of their pants. That’s a very dangerous part you should never tread.

Read and understand financial statements.

In addition to spreadsheets, you can also leverage QuickBooks to record transactions and generate accurate financial reports for your business. You do this by developing a system that helps you track your expenses instead of flying by the seat of your pants.

When you understand your financial statements, you put stress at bay as you worry less about cash inflow, which will make you focus on marketing your business and completing the tasks you have at hand.

Project your expenses

Your budget may work on a month-to-month basis, but there are business or personal expenses you must do periodically.

When you know these expenses are due, you can schedule how you pay them appropriately into a correct monthly budget instead of being blindsided.You can use QuickBooks and other budgeting tools to manage the expenses that come once a year.

Do Monthly Savings to pay your taxes.

You don’t have to be indebted because you don’t work like employees that earn monthly. It is about proper planning. If you set aside money for tax and other expenses, you wouldn’t have to bother yourself when the need arises.

Remember, tax won’t be withheld from your account because you currently have no job to do. So, you will be responsible for those taxes and need much more available for your needs.

As a freelancer, you will need to pay estimated taxes. To make this easier, you should work with an accountant who will help you put things in order.

Regular payment of bills

As a contractor, your credit rating is as important to you as it is to other people who are not. That’s why you should pay for everything without delay.

Paying prompting increases your credit rating. It makes it so high that you can approach your bank for loans or access a line of credit if you have an emergency that goes above your savings.

Have a separate savings account.

As a contractor, money doesn’t flow as expected every time. That’s why you should enter the contract world with the mind to save as much as you can for the rainy day while the sun shines.

Financial advisors recommend 3-6 months of savings set aside somewhere to cater to your needs when nothing is forthcoming.


In conclusion, the better you manage your money as a contractor when you’ve little or no jobs to do, the more peaceful and realized you are, even when nothing is forthcoming.

Take expert advice, and always know that the more you save, the more peaceful you are, even when no clients are mailing you.

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