Today, there is a significant increase in remote work as 59 million Americans freelanced in the past year, making up 36 percent of the total US workforce. It is also why more people are starting their freelance businesses by offering services for remote work.
One of the rising freelance businesses to consider is setting up a freelance writing company. If you have started or are planning to establish a freelance writing organization, you must learn how to protect and manage your company’s finances effectively.
Here’s how you can start securing your freelance writing company and creating contracts for authors today:
Obtain Disability Coverage
A disability may strike anybody at any time. According to the Social Security Administration (SSA), one out of four young adults will become disabled before reaching sixty-seven.
Getting a disability insurance is a wise decision since it compensates a significant portion of your lost income if you cannot work. You can choose between short-term and long-term disability, although long-term disability is the most beneficial.
Consult with an Accountant
The notion of doing your taxes is a tedious task, and this is why it is a good idea to hire an accountant. Furthermore, when your freelance writing business expands, a skilled accountant will offer tax structure recommendations.
If you have someone monitoring your money development with your best interests in mind, you will save thousands around tax season. Also, make sure to prepare a simple contract agreement when you hire your accountant to remain on the same page.
Back Up All Precious Data
You will never know when your device or platforms shut down, so it’s best always to have a backup. To store your files safely, make sure you have an external hard drive or a USB flash drive for a physical copy of your records and have a Cloud backup for the soft documents.
Prepare the Contract Agreements
Contracts are essential components of every professional business partnership. Since your freelance writing business will most likely deal with clients, you need a signed agreement on terms and conditions. That way, you can protect your company’s finances and set the right expectations with your client.
As a freelance writing business, your contract should include the following:
- A description of the services you’ll offer
- Late charge provisions for “forgetful” consumers
- Payment plan, methods, and schedule arrangements
- Ownership of intellectual property rights
- Confidentiality clauses from both parties
Trustworthy contracts for content creators ensure that you and your client will uphold the signed agreement. Contacts come in handy, especially if there are any disputes or confusion, including any concerns regarding the payment of services. As a result, you can protect your company’s finances accordingly.
Establishing your own business as an independent contractor is never an easy feat. Make sure to take the tips mentioned above to help you financially protect your freelance writing business. More importantly, preparing your contract agreements will help you avoid losing thousands of dollars in the long run, so make sure to create one for your business.
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