Money management for freelance writers
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/