As a freelance indexer you’re also a small business owner. With that comes the task of keeping track of business costs and billings. But successful indexers also look back on their progress as their business grows.
Here are three kinds of information that you will want track to keep your business thriving and growing:
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1. Information for taxes
This includes revenue, expenses, sales tax billed and collected, and details for allowable deductions or “write-offs”.
Review the most recent year’s tax forms or consult an accountant to learn what deductions you might be eligible for from your self-employed earnings. For example, if you work in a dedicated home office, you can deduct a portion of your property costs, such as utilities.
Also make sure you are capturing and collecting the investment costs you incur before you even begin billing clients. These might include computer, software, reference books, membership fees, and courses.
2. Information to ensure you get paid
This is why you’ll want to track the following for each invoice:
- Job title
- Invoice number
- Invoice date
- Client name and contact information
- Amount charged
- Any sales tax charged
- Total invoiced
- Payment due date (if not “due on receipt”)
- Job start and end date
- Payment received date
- Payment method
When you work from one job to the next without taking a break, it’s easy to lose sight of unpaid invoices—especially invoices to publishers that take 30 days or more to pay.
This information will also provide the supporting detail for reporting your revenue and collected sales tax at tax time.
3. Information to track your productivity and improve your pricing skills
- Job title
- Client name and contact information
- Number of pages/words indexed
- Your estimated hours
- Your target rate (price per page, for example)
- Your quote
- Your actual hours
- Your effective hourly wage
- Job start and end date
- Notes about the client or the job
Related questions
How can I track my projects for invoicing?
How do I start on the right foot with keeping track of my finances?
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