Money management for freelance writers
>> Friday, March 26, 2010
Dianne Hill, Robert Peake and facilitator Emily Chantiri
As a freelance writer, do you manage your cash flow well?
Do you know what tax deductions you are entitled to claim?
Is your superannuation sorted?
Do you have income protection and if not, should you?
What about GST; do you know if and when you should be charging it?
These were just some of the questions raised at this week’s speaker event held by the Sydney Freelance Journalists’ Group.
On hand to answer the questions were our two well-informed and articulate experts:
Dianne Hill: company director and management consultant with a background in chartered accounting, banking and project management, and also the co-author of the book, The Money Club.
Robert Peake: long-time partner of Herkess & Partners Chartered Accountants with a long list of clients who are individuals and small businesses.
I have broken down the 80-minute panel discussion into five shorter segments, covering the main points that were raised.
Section 1
The pros and cons of setting up yourself as a business or a sole trader.
Section 2
How freelance writers can best manage cash flow and the common mistakes freelancers make with regards to cash flow. This section also covered the various tax deductions that freelancers are entitled to claim.
Dianne also offered some tips to managing cash flow.
a) Have online access to your bank account and regularly monitor you incoming and outgoing funds.
b) Prepare a cash flow forecast, either on a weekly or monthly basis. This forecast should include:
- where your income is derived from;
- when it will be paid;
- the opening balance for each period and estimates of incoming and outgoing funds.
c) Compare your estimates to actual cash flow according to your online bank statements. This allows you to better forecast and plan for ups and downs.
Section 3
When to charge GST and when not to.
Section 4
Understanding the different types of superannuation products available.
Section 5
Assessing your need for income protection, how to pick the better products and how to lower your premiums.
Related posts
* The business of freelance writing
* Climb Everest with these time management tips
For more information about Pamela Wilson or WriteSmart, log on to http://www.writesmart.com.au/
8 comments:
Hey Pamela,
I'm just starting my freelancing career and I've found your blog extremely helpful. So much so, in fact, that I've left you a little blog award on my blog, Becks and the City:
http://becks-carrie.blogspot.com/
Hope you can stop by and check it out! : )
Thanks Becks. Very much appreciated. I am glad the blog is helping you.
Cheers,
Pam
Income Protection Insurance provides peace of mind, protecting your income in the unfortunate event that you become unable to work due to sickness or injury generally in your own occupation (Check the PDS). The terms of your policy can be chosen to suit your individual circumstances, but most policies in Australia pay up to 75% of your gross salary and you are covered 7 days a week, anytime and anywhere in the world.
You can choose the duration of the benefit period, which can be anything from 2 years up to age 65 and you can also choose to be paid a lower monthly benefit should you not require the full 75%.
The price of the policy is dependent on a number of factors including the amount of your annual income, your age, gender and state of health, whether or not you smoke and what your occupation is. You can also choose a designated waiting period for the policy to start accruing the benefit which will also influence the cost of the policy. If you would like to find out more about finding an appropriate income proteciton policy visit: http://www.xlife.com.au/
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nsurance provides peace of mind, protecting your income in the unfortunate event that you become unable to work due to sickness or injury generally in your own occupation (Check the PDS). The terms of your policy can be chosen to suit your individual circumstances, but most policies in Australia pay up to 75% of your gross salary and you are covered 7 days a week, anytime and anywhere in the world.
Good bookkeeping is the key for money management.
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