End of the Year Planning for Freelancers

Credit: joshuahoffmanphoto on Flickr

The end of the year is rapidly approaching and, for freelancers, that means that a few things need to get done. There are money matters that need to be handled before the year ends, as well as some planning for the new year. Just what needs to be done can vary a little, based on how well you’ve kept up with your administrative work over the course of this year, as well as where you’re based and what you do. No matter the details, though, there’s not that long left to close out 2010.

Preparing Taxes

While you don’t have to do your taxes until after the end of the year, it’s a good idea to start preparing for them now. I know I have a stack of receipts that I really should get caught up on and I’d rather not do that right before I actually do my taxes. If you can get a clear idea of what you may owe for this year’s taxes, it can be well worth your while. There are a number of strategies (like opening a retirement account) that can cut down on your tax bill — but you have to get most of them taken care of before January 1st.

Even if you don’t have all the end of year numbers yet, see if you can get an idea of what your taxes will look like. From there, it’s likely to be worth your while to schedule some time with a CPA or a tax professional to see how you can improve on your situation. It doesn’t hurt to get in with your tax preparer early, either: some tax preparers even raise their rates as deadlines are approaching.

Meeting Your Goals

Did you set goals for 2010? Have you met them yet? It’s time to sit down and check how close you are to meeting your goals. I’ve got a couple that are in reach if I can push a little harder than I usually do. Since I really want to make my goal, I’ve got a plan in place to get me there. Are you on track for your goals or are you going to need a little more speed to cross the finish line?

Setting Your Goals

While you happen to be looking at the goals you set for this year, you may want to lay out your goals for next year. What worked and what didn’t will be fresh in your mind, making it easier to determine what your ambitions are for next year and what you need to do to reach them. It’s also worth taking a look at what you like and dislike about freelancing: personally, there is a certain type of client who I plan to stop working with in 2011. I need to replace that income, but it’s simply not work I enjoy.

Raising Rates

The new year is the perfect time to raise your rates. If you haven’t raised them recently, it’s time to sit down and run the numbers on how much you’re making off the time you invest in a project. Even if you’re making enough to cover all your bills, it may be time for a raise. I’d suggest adding in a new item on your budget, if nothing else — like funding a retirement account if you aren’t already doing so (If you are, maybe it’s time to raise the amount you’re contributing).

You may also want to look back over your goals. If you have any personal projects that you want to work on in the next year, one way to free up time for them is to raise your rates to the point where you can work at least a few less hours a week.

What are you doing to prepare for the end of 2010?

Photo credit: joshuahoffmanphoto on flickr