About 35% of the workforce in the United States freelanced in a recent year. This accounts for 57 million people. Freelancing is on the rise and is a form of convenience for both the worker and the company delegating the work.

As freelancers step up into the world of becoming their own bosses, it requires a learning curve for some fundamental aspects of business. Most notably, freelancers have to learn how to keep track of their finances. We’re happy to offer a head-start.

Here’s how you can organize and manage your freelance business finances to the fullest.

Know All Your Revenue Sources

First things first, you have to keep track of every source that generates revenue. This means rounding up your client list and keeping track of any residuals or other forms of freelance income.

Document the rate you charge for your service, the date that services were rendered, and other important information. You’re responsible for paying taxes on any income, so you need a full understanding of how much you earned in the calendar year.

Set Up Billing and Payment Policies

Strong billing and payment policies will allow you to get paid in a timely fashion and for the full amount that you are owed. Today, you can easily send invoices digitally and track when you get paid. The client can pay your invoice directly through a digital platform. Many third-party payment companies like PayPal and Quickbooks have their own invoice systems you can use for convenience.

You can also grab an invoice template that’ll let you put together clean and organized records. Compile archives of all your invoices, and use personal branding, such as your logo and website on the invoice to keep it professional and to make sure you’re paid correctly.

Track and Document Your Expenses

As a freelancer, you have to also keep track of your business expenses. Knowing your expenses helps you to factor in your profits and set financial goals throughout the quarter and year.

This helps you to keep clean records, and you’ll be able to classify transactions as personal or business expenses. The nature of these expenses will become important around April when you’re searching for tax breaks. Keep hard copies of receipts and take pictures or scan them so that you also have a digital archive.

Get Accounting and Tax Help

Finally, make sure that you use whatever accounting and bookkeeping software you feel most comfortable with. Choose a platform that comes with a mobile app so that you can quickly categorize and document transactions while you are out and about.

You’ll be able to use this software to manage money, come up with a budget, and track finances with up-to-the-moment accuracy. It might also be worth your while to hire a certified public accountant (CPA) to handle this work for you.

Optimize Your Freelance Business

The points above will help you get the most from your freelance business. You’ll be able to take on this entrepreneurship challenge head-on as long as you have the right resources and advice to get started.

We’re happy to be your one-stop-shop for this sort of advice. Begin here and browse our other posts to learn about the business and advertising tips that’ll help you out the most