4 Tips for Improving Financial Organisation as a Home-Based Worker
People love to talk about New Year’s Resolutions but neglect to mention the downsides. Like how we set ourselves up for failure by making short-term commitments just because it’s another year coming around but without being willing to follow through. For 2020, don’t make that mistake!
You want to save more money and become better organized as a home-based worker. So, in this article, we’ll provide 4 tips for ensuring you put money away and suggestions for how to be more financially organized too.
1. Use the Right Tools to Be Financially Organized
Trying to track your business income and expenses on a spreadsheet becomes problematic eventually. Sometimes spreadsheets get corrupted and you can lose years of data too. It happens! It’s best to use an accounting package that will allow you to enter your sales and keep track of what’s in your checking accounts too.
FreshBooks is an excellent package that keeps it simple for new businesspeople when you want to sidestep complexity and there’s no inventory to manage.
If you sell online and have some inventory, perhaps you already use separate software to keep track of stock levels? Zoho Inventory is a popular app for this purpose which many small business owners use. Mailchimp is a useful email mailing list provider that’s very affordable to keep subscribers current with the latest news in your business too. Both are recommended.
2. Keep Everything Synced Together
When you now use several popular apps to perform different functions within your business, it’s easy for client information to become incorrect. For instance, updating the contact information in one app doesn’t automatically update it elsewhere. As a result, a CRM package might have incorrect information even though the Google Contacts on your smartphone might be right. This can lead to a great deal of confusion.
The solution is to use a service like PieSync. This is a cloud-based solution that works to connect different apps and sync data between them. It cleverly figures out which is the latest information and ensures connected apps get synced regularly to stay correct. So, as long as the new contact information is correct, it’ll be updated in a helpful way across multiple software packages used in your business.
3. Standardize Yearly Increases in Billables
Many home-based business owners who bill out for their time or services feel extremely hesitant to increase their rates or prices on a regular basis. There is a natural fear that they’ll lose clients or customers should they do so.
The reality is that, yes, some people or companies will leave. However, with higher prices, you can focus more of your attention on the clients who’ve stayed. And you may make the same money with fewer accounts too. However, if you put up your rates and add some additional premium service offerings, your total monthly invoices are likely to increase faster than the rate of inflation.
4. Ensure Your Wage Doesn’t Ever Get Cut
It’s tempting to cut your wage down when there’s a slowdown in sales. However, as a small home-based business, month-to-month sales will always be volatile. It’s not a sensible idea to adjust your wage up and down to reflect that as it has a destabilizing effect on your personal life too.
Keep your wage the same. Cut back on business expenses where you can or keep pushing on the marketing side even when you’re busy to stay that way. Then, set aside a fixed percentage of your wage to go into long-term savings and investments, as you won’t run your business forever.
When you get more organized in your business and financial life, things tend to start working out. It requires more discipline and focus, but it can be done when using the right tools.