3 Business Expenses That Are Important to Keep in Mind as a Freelancer

by Jul 20, 2021

Get 60% off the ‘Secrets of a Six Figure Freelancer’ ebook today

The success and growth rates you experience directly correlate with what you invest in your business. It is uncommon for a freelancer to have unlimited resources for their business, which makes it crucial for them to keep track of their expenses along the way. As a freelancer, don’t neglect to track equipment investments, client communication costs, and health insurance.

Equipment Investments

Equipment is a necessary part of running any business. Even the simplest attributes like having a facility with running water play a role in your production process. Working from an extra bedroom in your home still qualifies as a use of equipment. Computers, cell phones, machinery, office supplies, etc. also contribute to your equipment costs. These costs can be tax-deductible expenses for freelancers. Rather than calculating just how much it takes to produce your product, be sure to include all associated costs for a better investment estimate.

Client Communication Costs

Communication is vital to the success of a business and cannot be done well without the proper resources. There are costs associated with the communication you have with your clientele. These would include postal services, phone plans, internet availability, and so forth. Fortunately, there are various package options that let you bundle your expenses and reduce costs. There are also several emerging technologies that make it possible to network and communicate better with your customers. Search for the latest strategies and technologies to help you run client communication more efficiently.

Health Insurance

Health insurance including medical, dental, or long-term care is incredibly valuable. You never know when something could happen to you or your loved ones that prevent you from being able to earn an income or cover the cost of the bills. Investing in health insurance is investing in the safety of you and your business for years to come. If you are self-employed, there is a major tax deduction you can take from providing your own medical insurance premiums. This is only available if you have a net profit from self-employment. To claim this deduction, you’ll find it on Line 1 of Schedule A form 1040.

As a freelancer, responsibility for everything is all on you. This can be stressful, especially for those starting out. The key to success is to focus on the basics and doing them well. Three basic expenses to keep in mind: equipment, communication, insurance.

For more of my best business tips, check out my book!

 

3 Business Expenses That Are Important to Keep in Mind as a Freelancer 1

Other Posts You Might Like

Legal Issues Every Freelancer Should Know About

You may not have the resources of a larger company to handle legal matters, but it's important to know the...
Read More

Why You Should Become a Freelance Writer

Writing is a skill that doesn’t come easy to everyone, but if it’s something you do well and enjoy then...
Read More

How to Get Out and Promote Your Brand

As a small business owner, it's important to get out and promote your brand. You can't just sit behind your...
Read More

The Benefits of Working as a Freelancer

Freelance work has become more popular, but for many people, it can still be an unfamiliar idea. While there are...
Read More

Underutilized Tools That Can Grow Your Business

Your business deserves only the very best. You should also be aware of the common pitfalls for new startups. One...
Read More

Strategies That Can Help Reduce Small Business Taxes

Finding ways to control costs is an important task for any business, no matter how big or small it is....
Read More

How to Become a Smarter Decision-Maker

Learning how to become a smarter decision-maker is a priceless life skill to have. This skill can save you a...
Read More

Challenges When Trying to Make Remote Work Function Well

Remote work can come with a lot of challenges if your company isn’t set up to facilitate this type of...
Read More

What to Know About Owning a Vehicle for Your Business

Different businesses are going to need different assets. Some might need commercial property. Others might simply need one or more...
Read More

How to Properly Vet Potential Employees

Employees are the lifeblood of any company. How should you vet potential employees to make sure you choose the right...
Read More

Hi, I’m Kate

Hey, I’m Kate! I’m a designer, digital nomad and founder of Six Figure Freelancers – I love to help talented tech pros start businesses.

Work with Me

Get The Book

AppSumo badge

Featured Post

Pin It on Pinterest