Reasons Why Every Serious Freelancer Should Have a Professional Bookkeeping Service

The bookkeeping task, is among the most tedious chores for a small business owner. The Orange County bookkeeping services can help you find the best and the easiest way to keep your books accurate and up to date.

 

In past articles, we have already talked about different approaches to the important data that reliable financial information can provide. Mainly, it constitutes the foundation of the decisions made, regarding the future of the company, investments, expansion, etc. But it also contains important information about other areas, such as manufacturing or sales.

 

It is also important for those who work on their own, whose main business is not the sale or exchange of products as such, but services. Of course, most of the businesses that you end up doing as a freelancer could be considered a product. For example, translation services, content for social networks or websites, or activities such as designing logos, stationery, invitations, etc., without taking into account the printing service, which does constitute a finished product.

 

You may be wondering where am I going with this, regular customers tend to think that by not getting a physical product, the cost should be relatively cheap, it is more difficult to get them to accept the cost of such services. They rarely take into consideration, the hours that you spend in the creative process of getting the right idea, work with it and finally transform it into a design or a publication. A large part of the people who are not familiar with the creative concept, can’t explain the reason for the cost of something that hasn’t been printed or published. Those who work in this type of business, know that each creation involves a large number of hours, sometimes even days, to deliver a quality product that is satisfying to the customer.

 

Moreover, a huge part of the freelancer’s clients is annoyed when they are charged an extra fee for excessive changes in the original design, without taking into account that each change implies extra working hours not included in the original quote.

 

But what is the relationship between the previous problems and the bookkeeping activities? It seems that there isn’t any, however, the price of a product or a service, must be established based on the cost of production of whatever the product, if in the case exposed are hours, we could be losing money, even though apparently, we are charging what was previously agreed with the client.

 

How is this possible? Well, depending on the type of business is how you get the cost of a service, but if we go back to the previous example, you would have to analyze the hours worked, against net earnings and the amount of work requested. In this way, we can get a very good idea if we are really being productive and lucrative if we are charging above or below the average and adjust accordingly. This is only possible through adequate financial information, which is obtained through recording the operations properly. The Orange County bookkeeping services can help determine all the right numbers for your type of business.